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Dialogue 2 (Example)

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Anderson Olds and Watershed CPAs Name Institution Anderson Olds and Watershed CPAs Introduction Financial reporting and auditing has witnessed a stream of changes and advancements in defining the scope of business organizations’ activities and efficiency. Auditing has taken the better of it and is very critical to determining success of business transactions and consistency in the market. Larry Lancaster the CEO of Apollo Shoes Inc. finds himself in a conflicting situation and it is evident that change was inevitable. It is therefore important for him on behalf of the company to change the auditors and for that matter adopt Anderson Olds and Watershed (AOW) at expense of Smith & Smith CPAs the previous auditors to enable them make the right move. For instance the CEO should clarify to the AOW CPAs the areas to major and improve on contents of reports released to the market and how comprehensive the auditors should be to ensure that Apollo Shoe Inc. standards are maintained (Mazza & Azzali 2015). References Diaz J. (2011). Intra-Audit Firm Office Changes Audit Pricing and Accrual Quality. SSRN Electronic Journal. dx.doi.org Le Grand C. (2012). Performing the IT General Controls Audit. EDPACS 45(1) 1-13. dx.doi.org Mazza T. & Azzali S. (2015). Effects of Internal Audit Quality on the Severity and Persistence of Controls Deficiencies. International Journal Of Auditing 19(3) 148-165. http://dx.doi.org/10.1111/ijau.12044 [...]

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Communications between Predecessor and Successor Auditors. Assume that Smith & Smith, CPAs, audited Apollo Shoes Inc., last year. Now CEO Larry Lancaster wishes to engage Anderson, Olds, and Watershed, CPAs (AOW) to audit its annual financial statements. Lancaster is generally pleased with the services provided by Smith & Smith, but he thinks the audit work was too detailed and interfered excessively with normal office routines. AOW has asked Lancaster to inform Smith & Smith of the decision to change auditors, but he does not wish to do so. Required: List and discuss the steps AOW should follow with regard to dealing with a predecessor auditor and a new client before accepting the engagement. 300-400 word APA format dialogue essay post, with three peer reviewed references.

Subject Area: Accounting

Document Type: Dissertation

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Words 550

Pages 2

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11.02.2017

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