Essay on PA1 - Assigmnment 1 CGA

Words: 1118
Pages: 5

Answer 1
A – 1
B – 1
C – 2
D – 4
E – 1
F – 3
G – 2
H – 2
I – 1
J – 1

Answer 2 MEMO
DATE: Sept 14, 2014
TO: Edward Sloane, Senior Audit Partner
FROM: XXXX, CPA, CGA
Subject:

I have been auditing Vehicles For Hope Limited (VHL) for the last five years, however during my recent meeting with the accountant I was informed of several changes that have taken place during the last one year. I am writing this memo to apprise you of these changes and seek your feedback on audit planning.

Significant Donations: Two months ago a long standing board member donated land, building and equipment to help VHL accept more applicants for the training. In
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During my latest visit I have noticed most expenses were appropriate however several expense reports did not have proper supporting documentation. The detection risk would become high if sufficient backup information is not available making the total audit risk high. I have documented this into the audit file and I will need to allocate more time looking into the expenses claimed by the board.

I also noticed that there have been several purchases made by the chair made in early December that include expensive clothing and jewelry. The receipts of these just provide the total amount, taxes and the vendor name. The accountant has advised me that these are appreciation gifts for volunteers, however no such purchases have been made in prior years. I have informed the board that I need to investigate these expenses in detail and would require further information. The board has not responded to this request and on my follow-up the treasurer has informed me that these expenses were discussed in a recent board meeting and were not an issue.

The minutes of the board are not very clear on the discussions that took place when approving these expenses. The board adheres to the provincial conflict of interest act and under this act the board member should recuse himself/herself from voting on matter that may cause a conflict of interest situation. The chair had recused him from the meeting when these expenses were discussed and approved. There