you have met potential client who informs you all employees and officers his company are bon

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You have met with a potential client, who informs you that all the employees and officers of his company are bonded. For this reason, he is requesting that under these conditions that you not look at his company’s system of internal control so his company may reduce the cost of an audit.

Prepare a letter to the potential client explaining the following:

  • Why you can or cannot honor his request.
  • The reasoning for your decision.
  • The potential ramifications of your decision.
  • Based on your choice of action, what the perceived corporate governance of the company would be to the public.

 

OBJECTIVES

 

Understand the risks that exist in both the business and auditing environment and a problem-solving methodology for assessing risks

Compare and contrast internal and external auditing in terms of their role in business and society, their goals and objectives, and their processes and practices

 

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