Change in Audits by Vehicles for Hope Limited

Hope Vehicles Limited (VHL) is a non-profit organization that has provided auditing services over the past five years. Several obvious changes occurred this year. I identified problems in this memo and made recommendations on action plans. Independent CEPROC requires independence as an objective condition of audit work. Based on my professional judgment, the following facts may pose a threat to the independence of the next VHL audit.

I have been reviewing Hope Vehicles Ltd. (VHL) over the past five years, but recently when I met an accountant, I talked about some of the changes I made last year. I will write this memo to tell you about these changes and seek your opinion on the audit plan. Two months ago, long-term board members donated land, buildings and facilities to allow VHL to accept more trainees. In addition, he donated $ 300,000 in cash to provide a toolkit for graduates. Accountants do not know how these transactions are handled, so there is no record. VHL uses the delay method for accounting and follows the accounting treatment of non-profit organizations (part 111)

During the 1970s and 1980s, some accounting experts focused on providing independent consulting services to audit clients from providing independent audits. The revenue sources of audit services are limited, and audit clients are increasingly seeking advice from various accounting experts on various projects. Competition in audit services is getting worse due to the elimination of bidding for competitive bidding and public accounting firms have significantly reduced audit fees to obtain market share. There are concerns that there may be the possibility of cutting off the corner and succumbing to the pressure of the customer in order to receive consulting services for the auditor to make a profit due to problems such as lower audit fee and opinion on shopping.

Type of audit: Many companies use accounting, called auditing, to resist financial fraud and limit the possibility that companies will conduct fraudulent financial reporting. This requires auditing of listed companies. An audit is defined as a review of financial activity reports on financial accounts and entities executed by individuals or companies that are independent of the entity being audited. The types of financial reports audited by the Company include financial information or descriptions that summarize or explain the balance sheet, income statement, shareholders' equity list, cash flow statement, and accounting procedures and methods used in the business Yes.