(b) Chatam, a limited liability company, is a long-standing client. One of its subsidiaries, Ayora, has made losses

for several years. At your firm’s request, Chatam’s management has made a written representation that goodwill

arising on the acquisition of Ayora is not impaired. Your firm’s auditor’s report on the consolidated financial

statements of Chatam for the year ended 31 March 2005 is unmodified. Your firm’s auditor’s report on the

financial statements of Ayora is similarly unmodified. Chatam’s Chief Executive, Charles Barrington, is due to

retire in 2006 when his share options mature. (6 marks)

Required:

C．omment on the ethical and other professional issues raised by each of the above matters and their implications,

if any, for the continuation of each assignment.

NOTE: The mark allocation is shown against each of the three issues.

[试题](c) Pinzon, a limited liability company and audit client, is threatening to sue your firm in respect of audit fees chargedfor the year ended 31 December 2004. Pinzon is alleging that Bartolome billed the full rate on air fares for auditstaff when subs

[试题]2 Plaza, a limited liability company, is a major food retailer. Further to the success of its national supermarkets in thelate 1990s it has extended its operations throughout Europe and most recently to Asia, where it is expanding rapidly.You are a ma

[主观题]Limited Liability有限责任

[名词解释] Limited Liability有限责任

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[试题]3 (a) Leigh, a public limited company, purchased the whole of the share capital of Hash, a limited company, on 1 June2006. The whole of the share capital of Hash was formerly owned by the five directors of Hash and under theterms of the purchase agree

[试题]3 Johan, a public limited company, operates in the telecommunications industry. The industry is capital intensive withheavy investment in licences and network infrastructure. Competition in the sector is fierce and technologicaladvances are a characte

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