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Chapter 27
Case Study
How should these matters be treated in reports to management?
156
Examination question
(Note: This is an abbreviated answer)
(a) Possible consequences
Production budgets
Freelance staff
Audio visual equipment
Recommendations
Production budgets
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Freelance staff
xStandard joining documentation/contract to be used by HR
department to identify nature of employee
xSuggest using our audit firm to carry out review of payroll
procedures
(b) Points to be included
Stopwatch plc name and address
We examined principal internal controls
We are writing to draw your attention to weaknesses identified as a result of
procedures performed during the audit
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Reason for points
Ensures no misunderstanding as to scope and extent of work