Zzzz Best Essay

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ZZZZ Best Case 1. An audit is performed by an independent company and is designed to provide a company with a positive assurance based upon the fairness of their financial statements. A review, however, is a service to gain moderate, or negative, assurance that there are no material modifications to be made for the financial statements to be in accordance with acceptable financial reporting framework. There is less evidence involved in a review and has a smaller scope than in an audit. 4. The purpose of this relationship if for the predecessor to come into the audit knowing the facts as to why the previous audit left or was released. It is the job of the incoming auditor to contact the previous. They also need to ask about irregularities within the company or any items that would cause alarm with the audit. 5. The confidentiality agreement did limit the scope of the audit performed on ZZZZ Best. It is the job of the auditor to obtain sufficient and appropriate evidence. When Ernst & Whinney were not allowed to follow-up with anyone involved in the restoration process that limited their ability to gather evidence. The company should have been able to follow up with all venders and customers to attest to the validity of the financial statements and they were not able to do this and not able to gather the “appropriate and sufficient evidence” needed. When a client will not allow the auditor to gather evidence needed to perform a correct auditor then the opinion can be affected. The auditor cannot attest to the fairness of the financial statements if the evidence is lacking or

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