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Elise Dallimore is the partner,.............

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Question 1;Elise Dallimore is the partner in charge of the audit of Hertenstein Ltd, a large listed public;company. Elise took over the audit from Marjorie Platt, who has recently retired from the;audit firm. Marjorie was a very experienced auditor and the author of several reports into;ethical standards in business, but Elise did not regard her highly for her ability to grow non?;audit service fee revenue. Elise sees an opportunity to increase the provision of non?audit;services to Hertenstein Ltd and thus increase her reputation within the audit firm.;a. Comment on Elise?s belief that increasing non?audit service fee revenue from her;audit client would increase her reputation in the audit firm.;b. Which non?audit services would you advise Elise to avoid trying to sell to;Hertenstein Ltd because of the potential ethical issues for the audit firm?;c. Would I make any difference to your answers if Hertenstein Ltd was a proprietary;company, not a listed public company?;Question 2;Ajax Ltd is a listed company and a new client of Delaware Partners, a medium?sized audit;firm. Jeffrey Rush is the engagement partner on the audit and has asked the members of the;audit team to commence the process of gaining an understanding of the client, in accordance;with ASA 315. One audit manager is leading the group investigating the industry and;economic effects. And another is helping Jeffrey consider issues at the entity level. Jeffrey is;holding discussions with members of the audit committee and his talks will cover a wide;range of issues, including the ASX Corporate Governance Council?s Corporate governance;principles and recommendations. He has a meeting arranged for next week with the four;members of the audit committee, is an independent director.;Based on the above information, can you conclude that Ajax Ltd complies with Principle 4 of;the ASX Corporate Governance Council?s Corporate governance principles and;recommendations? Explain.

 

Paper#35562 | Written in 18-Jul-2015

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