Scottish Treats Audit Case

761 Words 4 Pages
Introduction

Thank you for your consideration on potentially interested in having audit for your company, Scottish Treats Ltd and reaching out to our firm. The queries you laid out in your letter are a great sources of information in order to determine that the company needed in having an audit. In the next part of the letter, I will be explaining the answers to your queries and clearly clarify whether the company need in having an audit. The information for the company hoping to go for listing on stock exchange allows us to broaden our analysis for and answering your queries. Besides, the topics which will be disclosed in relation with the queries are including several legal requirements of auditors, the relation between audit and company’s financial statements and most importantly the massive argument on the independence of auditors. All of these topics will help you as a managing director to prominently grasp the key data
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This eventually helps to detect any potential business risk which can be contained in a subset of control. For an example, the business risk is the unexpected outcome the business may fail to meet the objectives and it can be control by four methods which are control the risk, take the risk, transfer the risk, or simply not taking the risk.

Scott Mclelland LLP will be able to perform internal audit as internal audit does not need a qualified accounts, only need to be qualified from Chartered Institute of Internal Auditors although internal audit is not mandatory for listed companies while external audit is. Depending on the situation of the company, internal audit might be more forensic, recognizing problems and opportunities with your policies and procedures, while an external audit might fixate on validating the numbers and the company pursuing standard accounting procedure. (Lewin,

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