Block 2 - Proposal Document, Advertsing, Fees Guidance

Question 1

Proposal document

Question 2

Communicate

Question 3

Interest

Question 4

Fees

Question 5

Basis of fees

Question 6

Paid

Question 7

Responsibilities of auditor

Question 8

How perform consolidation

Question 9

Outline of the firm

Answer 9

How big, number of partners, key strengths

Question 10

Expectations

Answer 10

I.e. on fees, deadlines, competence

Question 11

Honest

Answer 11

Yes or no, and why

Question 12

Advertisement

Question 13

Marketing

Question 14

Attract business

Question 15

Bring disrepute

Answer 15

Like free business advice, implying services are cheap

Question 16

Discredit directly or indirectly other firms

Answer 16

E.g. claiming to be number one

Question 17

Misleading

Answer 17

False statements on operations and affiliations

Question 18

Fees

Question 19

Fair/reasonable

Question 20

Basis

Question 21

Proposal document

Question 22

Engagement letter

Question 23

First year audit

Answer 23

Resources, time required, listed company more due care, more professional scepticism

Question 24

Contingent basis

Question 25

Self-interest threat

Question 26

Fees increase

Answer 26

Explain to client hey

Question 27

Gradual fee fall

Answer 27

Knowledge of business increases, no change to size or complexity, risk and work and efforts fall over time