Auditing Assignment Example | Topics and Well Written Essays - 1000 words

Auditing - Assignment Example The procedures involved in the investigation include, going through the reports by preceding editors, obtaining information from the management whether any of the officers has been convicted with crime. Carrying out the fact-finding mission of the preceding auditors on management’s integrity, disagreements or any other additional information on why the firm should decline the audit. Finally, there is discussion the potential client with the attorneys and bankers of the entity. The client continuance and acceptance forms facilitate the continuing and prospective client’s investigations. The forms undergo updating and renewal yearly to keep evaluating engagement and association with the client. The investigation of both the new and renewal clients is important for it enables the firm to establish the quality of the client they serve as well as if and they meet the standards. At the same time, the forms are essential in the bid to avoid omissions in the whole process of investigation. On accepting the client or renewing the engagement, the client personnel’s quality should be estimated as high incompetence and integrity. The attributes shape the foundation for evaluating risks at the level of financial statement and gathering facts on audit engagements. Jos A. Bank being a cloth line company, and there are various risks of development of scandals in the business. These are aggravated by the nature of the business. The major factors are those that can lead into fraud and they include the nature of the items in the company, ease with which one can resale the products of the company outside is major risk factor for fraud. The value of the clothes is not so high per piece that makes it easier for the incident of fraud because of the ease with which the products can be gotten out of the premise due to their size. The nature of the environment in the business also is among the risk factors of fraud. There are