Type of Audit
Limited, regular, none at all? First things first.
Here is the background information on your task
The Board of Directors of a five-star hotel, our long-standing client, has again elected PwC as their auditor. We have received an intimation letter and a confirmation of the mandate offer. As every year, before accepting the offer, we conduct a risk analysis of the audit mandate.
The question is: what form should the audit take? We’ll get to that in a minute. But first, let’s continue with the process.
Using our central database, our lead auditors and you will perform a risk assessment for the business and its relationships with customers and determine a total score for the hotel. To ensure an efficient audit, we provide the client with a list of the documents we require, which always includes the balance sheet and the income statement. We also look into our previous documentation to point out risks. In this case: during previous annual audits, on several occasions, we’ve found inexplicable differences between the hotel’s supply stocks and their valuation.
Here is your task
- Does this client need to undergo an ordinary or a limited audit?
- Or may the client legally dispense with an audit this year?
Resources to help you with the task
Find a recap of Kevin’s case explanation below!
Resources for the task
Use the linked PDF’s for helpful guidance on completing your task