Issue in contemporary auditing - Essay Example

Governance Reporting Reporting is a vital way of sharing financial information. Therefore, it will be our responsibility to report to you on whether the financial accounts have been arranged according to the accounting strategies as stated by you. Furthermore, we would report according to auditing process undertaken by us, on whether anything has emerged to our consideration for specifying that the revenue figure described in financial reports has not been appropriately extracted from book of records, or book of records do not record and clarify the transactions, with respect to the understanding of activity.

Scope of Work Our auditing process will include those activities we consider essential to allow us to report on the aspects of financial reporting and will comprise evaluating information and descriptions provided to us for conducting such investigations about the managers as we believe essential. It is to clarify you that we are not liable for the maintenance of bookkeeping records of the business, however we shall be pleased to advise on these aspects if required. The financial statements will have a declaration for your approval for having every relevant accounting record.

As a consequence of our tasks, we can be capable of providing suggestions on improvements that can be made to the accounting records. Nevertheless, our work must not be dependent on the disclosure of misdeeds. However, if an examination is required particularly to detect misdeeds, it can be independently conducted on request (The Institute of Certified Public Accountants in Ireland, 2003). Applicable Legislation The engagement letter will be administered by and construed according to International Standards on Auditing (ISA) 540 and pertinent national standards and practices.

ISA deals in duties of auditors with respect to fair value bookkeeping and associated financial disclosures. These standards necessitate that we plan and perform the audit in order to attain practical assurance regarding if the prepared financial statements determined to be are free from misstatements or not. Restriction on Audit Liability Due to the characteristics of audit and other inherent restrictions, there is always inevitable risk of financial mistreatments to remain undiscovered (Financial Reporting Council, 2012).

Agreement on Terms We will look forward towards complete collaboration with your employees and we believe that they will provide us whatever we require to accomplish our tasks. The fees will be based on the time required for addressing the required tasks along with other additional expenses. Once these terms are agreed, the letter would be effective until it is changed. Please confirm us about your agreement with the provided terms by signing this letter and returning to us. Yours Sincerely, Loughran and Shrives Chartered Accountants Acknowledged on behalf of Land Securities Group Plc by Signature: Date: Ethical Issues Leaflet The leaflet deals in legal and ethical implications of audit.

It provides the standards to which we are committed to maintain utmost professional and ethical standards in order to assist our clients about quality auditing. Integrity The first ethical issue is integrity. It states that we will undertake the auditing tasks and responsibilities with the utmost level of intelligence and integrity. Our work will be