Your PA Firm Has Been Auditing Ontario Pulp Company for Three

question 15

Essay

Your PA firm has been auditing Ontario Pulp Company for three years. Two years ago, a letter was received from the provincial government informing them that they needed to reduce the level of contaminants that they were releasing into the air and into local waterways. The deadline for this reduction is three months from today. The letter indicates significant fines (several hundred thousand dollars) if the targets are not met. Alternatively, the Company will need to shut down operations until the targets are met. During your audit planning process, management informed you that they have not taken any action but plan to start construction of the new pollution devices next month.
Required:
Explain the impact the above situation has upon your audit planning process.

---

Definitions:

Salient Cues

Prominent or noticeable features that stand out and influence perceptions and decision-making.

Problem Recognition

Problem recognition is the initial step in the consumer decision-making process, where the consumer identifies a need or a problem that requires a solution.

Consumer Decision Making

The process by which consumers identify their needs, gather information, evaluate options, and make purchasing decisions.

Participatory Commerce

An ecommerce model where consumers actively participate in the marketing, selling, and often the development of products.