CASE STUDY ON DOUBLE INK PRINTERS LTD (DIPL)
Case study on double ink printer’s Ltd (dipl)
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CASE STUDY ON DOUBLE INK PRINTERS LTD (DIPL)
QUESTION ONE
The audit and assurance services provided by our firm, Stewart and Kathy, is targeting at
reducing the losses of income on Double Ink Printers Ltd (DIPL). The assignment will help
achieve the commercial strategy of the DIPL Company. The engagement services will help
protect the source of income for our client and be the source of income for Stewart and Kathy as
it fits into its commercial strategy. The firm should not only focus on attaining higher revenue
through providing assurance services but should dwell further on other important consideration
of professional and ethical issues, and the wider risk related to the risk attached from the
assignment. The assignment is expected to be an ongoing process/services but not a run off the
engagement.
Double Ink Printers Ltd (DIPL) has been our client for the past three years. Our firm,
Stewart and Kathy, currently possess a good understanding of its business operations, thus will
help reduce the planning time and cut down on engagement risk. Stewart and Kathy should take
into consideration various ethical matters as Double Ink Printers Ltd (DIPL) is already a past
audit client. Such extra considerations include the appropriateness of providing other non-audit
services and the level of effect expected from receiving fees from existing audit client. Other
audit discussions involving general threats on the financial interests in Double Ink Printers Ltd
(DIPL) can be irrelevant since Stewart and Kathy have been previously providing audit services
and hence should have been expected to conduct clearance on the general ethical issues.
The assurance service is determined to provide an opinion on the key performance
indicators depending on the financial conditions of the sector. This is a very important
assignment and will require specialist possessing relevant experience and skills within the firms
of accountants. The firm might opt to either spend money and time on training staff or outsource
CASE STUDY ON DOUBLE INK PRINTERS LTD (DIPL)
specialist staff to undertake the assignment. This would allow Stewart and Kathy to improve on
its experience in this area, allowing it to provide extra services of this kind, which is in tandem
with the commercial strategy of the firm. The considerable expense will be incurred whether the
skills are bought in, or developed in house. Therefore, Stewart and Kathy will have to consider
the charged fee so that the firm can recover as much cost as possible.
Double Ink Printers Ltd (DIPL) is keen to report positive data to retain and maintain
customer satisfaction. Higher risk level is attached to the eventual disclosure of the financial
data. Double Ink Printers Ltd (DIPL) has a genuine reason to manipulate the financial records to
disclose that targets were achieved. Before deciding on the next-best course of action about the
assignment, Stewart and Kathy should consider whether an acceptable level of the risk can be
reached. It might be a daunting task for Stewart and Kathy to question and challenge the
