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Chapter 22
Case Study 1
Cuthbert
Why might Cuthbert outsource its accounting function?
What risks do Cuthbert run as a result of outsourcing and how might
these risks impinge on the financial statements?
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What risks to Tickett & Run face in the conduct of the audit?
Draw up a checklist of matters that might concern Tickett & Run on
the issue
Case Study 2
Hippay
Discuss the business risks attached to this company both in general
and in respect of the outsourcing
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Discuss the problems occasioned to the auditors by outsourcing and
how they might be overcome
Examination question
Petite
a) What problems might this present to the auditor?
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How may the auditor overcome the problems you have listed in a)
above