Last Year the Review of Mansbridge Broadcasting Did Not Go

question 35

Essay

Last year the review of Mansbridge Broadcasting did not go well for Raymond, Racicot, & Renaud, CA. In an attempt to meet budget, Peter Bossy, the auditor-in-charge, left out the review of closing procedures. His Group Partner's review notes were professional but his annual review commentary was not as complimentary. Peter was not convinced that he was at fault and felt that according to his firm's mandate, as spelled out in the engagement letter, it was the client's responsibility to ensure the adequacy of closing procedures.
This year the firm will be starting the audit of a new broadcasting client and the partner is planning the risk assessment procedures. His partner's review note reads: "Ensure that Peter Bossy gains a detailed knowledge of the Quebecor Media broadcasting operations at the entity level."
Required:
a) Comment on the partner's Mansbridge Broadcasting concerns and explain how the closing process is supposed to work.
b) Discuss the entity-level audit procedures Peter will have to follow in order to gain an understanding of Quebecor Media operations and why the entity-level procedures you identify are important.

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Definitions:

Partnership Agreement

A contract between partners in a business outlining the terms, responsibilities, and profit distribution of the partnership.

RUPA

The Revised Uniform Partnership Act, which provides a legal framework for the formation, operation, and termination of partnerships in the United States.

Wrongful Dissociations

Refers to instances where a member of a partnership or an entity leaves the partnership in violation of the agreement or under circumstances that are damaging to the partnership's or the entity's operations.

Wrongful Dissociation

A term referring to the improper withdrawal of a partner from a partnership or a member from a limited liability company (LLC), which can lead to potential legal and financial penalties.