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eFishie eFishie
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5 years ago
Xiao, PA, is the audior of Minkle Credit Union, a medium-sized credit union. Xiao has prepared a management letter with several serious control weaknesses. Management agrees with the facts, but does not want to present the letter with the weaknesses to the audit committee or the board of directors. Management has implied that they will request a change of auditors if your firm presents the management letter to the board.
Required: Discuss the actions that Xiao should take. Justify your response.
Textbook 
Auditing: The Art and Science of Assurance Engagements, Canadian Edition

Auditing: The Art and Science of Assurance Engagements, Canadian Edition


Edition: 12th
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victroxvictrox
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Xiao is being faced with an intimidation threat. Xiao needs to consult GAAS (the CICA Handbook), standards employees and other resources to first determine what must be reported to the audit committee. Xiao should also consider that if management does not want to disclose these matters, that there could be other issues that management is hiding, making it difficult to complete the audit. If the weaknesses could lead to potential material misstatements, Xiao is required to report them to the audit committee.
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eFishie Author
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5 years ago
Correct Slight Smile TY
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deathwing
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2 hours ago
You make an excellent tutor!
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