要求
（a）假设您不提供任何非审计服务，确定并解释您在决定是否接受任命为Transval的审核员时需要考虑的具体问题。
（b）讨论由提供Transval要求的额外服务造成的客观性的威胁，并描述可以采取哪些保障措施来减轻这些威胁。 （参见“2002年萨班斯法案”和“国际审计准则”（ISA）210）。
（c）客户接受程序是质量控制的关键要素。 描述质量控制体系旨在减轻的审计公司的风险。
回答以上作业内容
Transval Ltd
The Directors of Transval Ltd ('Transval') have approached you with a view to appointing your firm as the company's auditor for the year ending 31 December 2014. Transval manufactures plastic pellets for use in the injection moulding industry.
Transval has over 80 customers. For the largest customers, Transval maintains a holding of inventory located at the customer's own premises. Transval undertakes quarterly inventory counts at all of these customers' premises.
The company's auditors have been notified that they will not be re-appointed for the current year’s audit (or for the foreseeable future). This is due to a dispute that arose last year between the auditors and the company's directors over the useful life of a substantial addition to plant and machinery. The matter was finally resolved to the auditors' satisfaction, but only after a heated discussion during which the auditors were threatened with removal and non-payment of their audit fee. The new plant and machinery was financed by a large bank loan. The loan covenant specifies that audited accounts be delivered within three months of the company's year end.
In addition to your appointment as auditor, the directors of Transval have also requested:
(i) That you, as the proposed engagement partner, attend the company's monthly board meetings; and
(ii) That your firm be appointed to assist with the preparation of both the company's corporation tax return and the directors' personal tax returns.
Your firm has a total of four partners located in two offices within 50 miles of each other in the south-west of England. Most of your existing clients operate in the retail and service sectors.
Requirements
(a) Identify and explain the specific issues you need to consider in deciding whether or not to accept appointment as auditor to Transval, assuming that you do not provide any non-audit services. (30 marks)
(b) Discuss the threats to objectivity, if any, caused by the provision of the additional services requested by Transval, and describe what safeguards could be put in place to mitigate those threats. (Refer to the Sarbanes-Oxley Act, 2002 and the International Standards of Auditing (ISA) 210). (50 marks)
(c) Client acceptance procedures are a key element of quality control. Describe the risks for an audit firm which a system of quality control is designed to mitigate.
(20 marks)
a) Identify and explain the specific issues you need to consider in deciding whether or not to accept appointment as auditor to Transvaal (Thereinafter referred to “The Company”), assuming that you do not provide any non-audit services.
There are several issues associated with the auditor to The Company.
Firstly, the primary issue is related to the inventory. Inventory is the categories of the assets which have three basic requirements. Based on the definition of the assets under conceptual framework, the asset is that “a resource controlled by theentity as a result of past eventsand from which future economicbenefits are expected to flow tothe entity”.Therefore, three basic requirement of the asset are ownership and future benefit, past events, and measurable. In addition, according to the Paragraph 6 of International Accounting Standard (IAS) 2,
Inventories are assets:...................
b) Discuss the threats to objectivity, if any, caused by the provision of the additional services requested by Transval, and describe what safeguards could be put in place to mitigate those threats. (Refer to the Sarbanes-Oxley Act, 2002 and the International Standards of Auditing (ISA) 210).
The goal of the Sarbanes-Oxley Act, 2002 is to enhance transpar
