Discussion
What are the main duties of each of the positions that comprise Abernethy and Chapman’s engagement team?
Abernethy and Chapman’s engagement team comprises of a partner-in-charge, a manager, a senior auditor, and one or more staff auditors. The partner-in-charge leads the engagement team and is responsible for all final decisions made while conducting the audit. The manager, senior auditor, and staff auditors are to perform the actual audit examination. The engagement team’s responsibility is to complete the audit with competency and objectivity.
What is the purpose of having both a partner-in-charge and a consulting partner on each audit engagement? Should the partners be rotated periodically? Why or why not?
The partner-in-charge is responsible for leading the engagement team through the audit and making decisions during the process. The partner is responsible for reviewing the team’s final work, monitoring quality control standards and maintaining the human-resource policies of the firm. It is required that partners rotate periodically. Auditing & Assurance Services states “as required by the Sarbanes-Oxley Act, the SEC independence rules require the lead and concurring audit partner to rotate off the audit engagement after five years.” (Arens, Elder, and Beasley, 2014, pg. 89)
Can an accounting firm hope to accrue any real benefit from a marketing campaign such as the one carried out by Abernethy and Chapman? Should the management of a company select its auditors based on advertisements alone?
All companies need to have some type of marketing strategy in place in order to be successful and generate new sources of revenue. In today’s day in age of technology, it is easier and cheaper than ever to advertise your services for a fraction of the cost. Abernethy & Chapman have the right idea by sending out newsletters to their existing clients. Word of