Assignment 1 1

Powerful Essays
ACCT310 Auditing
Individual Assignment 1:
The Peninsula Limited: Analysis of a Potential Audit Client

Jimmy Chung is the president of the Peninsula Company, a retailer and distributor of consumer electronics based in Hong Kong. Although Lam & Company, the audit firm had previously audited Peninsula, Jimmy has recently become aware of the CPA firm of Zhou & Company from his friend. His interest in the firm was heightened when he discovered that Zhou & Company audited the primary bank with which he did business. During March of 2015, Jimmy contacted his banker who arranged for Jimmy to have lunch with one of the CPA firm’s partners. At that time, a wide-ranging conversation was held concerning Peninsula as well as Zhou & Company. Jimmy discussed the history of the consumer electronics company along with his hopes for the future. The partner, in turn, described many of the attributes possessed by his audit firm. Subsequently, Jimmy requested a formal appointment with Peter Zhou, the managing partner of Zhou & Company, in hopes of arriving at a final conclusion concerning Peninsula’s 2015 audit engagement.

A June 1 meeting was held at the audit firm’s office and was attended by Jimmy, Peter, and Andrews, an audit manager with the CPA audit who would be assisting in the investigation of this prospective audit client. Both auditors were quite interested in learning as much as possible about the consumer electronics business. Although there are a number of similar operations in Hong Kong, Zhou & Company has never had a client in this field. Thus, the Peninsula engagement would offer a good opportunity for Zhou & Company to break into a new market.

During a rather lengthy conversation with Jimmy, Peter and Andrews were able to obtain a significant quantity of data about the Peninsula Company and the possible audit engagement. Included in this information were the following facts:

Jimmy originally began Peninsula in 1997 as a single store that sold

You May Also Find These Documents Helpful

  • Better Essays

    Assignment 1

    • 1301 Words
    • 6 Pages

    6. Many drug safety research studies are sponsored by pharmaceutical companies that would financially benefit if the results of the study are favorable. Is this an example of a potential confounding factor?…

    • 1301 Words
    • 6 Pages
    Better Essays
  • Good Essays

    Pinnacle Manufacturing Case

    • 2290 Words
    • 10 Pages

    During the planning phase of the audit, you met with Pinnacle’s management team and performed other planning activities. You encounter the following situations that you believe may be relevant to the audit:…

    • 2290 Words
    • 10 Pages
    Good Essays
  • Better Essays

    Acct 555 Smackey

    • 2369 Words
    • 10 Pages

    This paper analyzes a fictional privately held company, Smackey Dog Foods, Inc. as well as its fictional auditor, Keller CPAs. The analysis is based on a Keller Graduate School of Management scenario and a series of questions developed to address concepts learned throughout the External Auditing course. Concepts include: SEC influence, audit planning, audit stages, internal controls, confirmations, sample size, obtaining evidence, inventory, warehousing cycles, Professional Rules of Conduct, and auditor’s legal liability. Each of these auditing concepts are explained and then applied to the scenario between Smackey Dog Foods, Inc. and Keller CPAs.…

    • 2369 Words
    • 10 Pages
    Better Essays
  • Good Essays

    Hotdogs Does Case

    • 706 Words
    • 3 Pages

    1. The audit of Herb’s Hotdogs does pose some engagement risk but not as much risk as a larger, publicly held corporation. The way Herb is required to calculate his rent — and given Herb’s small operations— TLZ Co. may attempt to hold the auditors accountable for missing any material misstatements. Moreover, engagement risk lies, contingently, in the integrity of Herb. Since Herb is required to have an audit, this typically implies a slightly higher level of engagement risk opposed to a firm that is not required to have an audit.…

    • 706 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    - It appears that a healthy transition from predecessor auditor to successor auditor will occur. This will allow for ease of access to any documents necessary in a successful audit. It also mentions that any management that the firm might need information from is willing and able to give it. This is also a good sign as to why our firm is accepting this audit. The other reason for agreeance to perform this audit is taken directly from Oceanview’s financial statements. Their financial…

    • 774 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    assignment 1

    • 1442 Words
    • 6 Pages

    1. Describe two examples of important things that financial planning skills can help you do, and explain why these things are important to you personally. (4-6 sentences. 2.0 points)…

    • 1442 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    Assignment 1

    • 872 Words
    • 4 Pages

    The IP addresses defined in a DHCP scope must be contiguous and are associated with a subnet mask. If the addresses you want to assign are not contiguous, you must create a scope encompassing all the addresses you want to assign and then exclude specific addresses or address ranges from the scope. So just be sure to check how you have your DHCP…

    • 872 Words
    • 4 Pages
    Good Essays
  • Good Essays

    assignment 1

    • 555 Words
    • 2 Pages

    Look at the following social problems as a behaviorist would. Suggest behavioral solutions for each.…

    • 555 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Assignment 1

    • 1250 Words
    • 5 Pages

    5. Imagine that you are considering moving to a new country and looking for a job there, but you first want to make sure the country has a strong economy. Describe at least three economic factors that you would want to research as evidence of the economy's strength or weakness, and explain how each factor would affect your decision to move there. (4-6 sentences. 3.0 points)…

    • 1250 Words
    • 5 Pages
    Good Essays
  • Satisfactory Essays

    Assignment 1

    • 464 Words
    • 2 Pages

    In 300-500 words, write a summary of your job exploration and respond to the following:…

    • 464 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Assignment 1

    • 883 Words
    • 4 Pages

    Up to the age of 3 months a baby will only be able to lie on its back. At around 3 months baby will start lifting their head and kicking their legs vigorously, they will also recognise the face of their main carer as well as bright lights and loud noises. As time passes they will be able to hold objects and transfer them from hand to hand, they will also attempt to put things in their mouth. Mobility usually sets in around 9-12 months. They will be able to sit unaided and will get around by either rolling, crawling, shuffling or possibly walking unaided. They will also have learnt how to throw objects. At 1 year although mobile they will still find balancing difficult but most children of this age will be able to kneel without support and climb stairs with supervision. At 2 years children will be able to walk, run and kick and throw a ball although they may not be confident at catching.…

    • 883 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Assignment 1

    • 673 Words
    • 9 Pages

    1. Compute cost of goods sold from 1/1 through 2/21 under the FIFO cost flow assumption.…

    • 673 Words
    • 9 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Prepare a 1,400- to 1,750-word memo to the Audit Partner, John Smith, summarizing your findings from the following case found in Ch. 13 of Modern Auditing: Comprehensive Question13-27 Key West Company’s —PPS Sampling Problem…

    • 1520 Words
    • 8 Pages
    Satisfactory Essays
  • Good Essays

    Assignment 1

    • 1477 Words
    • 7 Pages

    Our audit will be conducted with the objective of our expressing an opinion on the…

    • 1477 Words
    • 7 Pages
    Good Essays
  • Satisfactory Essays

    assignment 1

    • 161 Words
    • 1 Page

    Part 1: Answer the Module Review Questions listed below. These questions were chosen to demonstrate your understanding and help you assess your progress.…

    • 161 Words
    • 1 Page
    Satisfactory Essays