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Billy’s Beats Inc. Argumentative

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The auditor should determine the appropriate types and mounts of evidence needed to be satisfied that the client’s financial statements are fairly stated as well as the client maintained effective internal control over financial reporting. The auditor should make sure the procedures they choose can provide persuasive evidence which means the evidence must be appropriate and sufficient and the procedures they choose could provide relevant and reliable evidences.

The auditor just provided the inquiries to management procedure for the economic lives of the customer lists, the engagement team asked management what the reasoning was for the change in the assumed economic life this year. This memo was included in the audit working papers, but did not include any documentation from the engagement team. The auditor should also apply the documentation procedure such as read the minutes of board of directors meeting and summarize all information that is pertinent to the financial statements in an audit file.

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