Last Year the Review of Mansbridge Broadcasting Did Not Go

question 40

Essay

Last year the review of Mansbridge Broadcasting did not go well for Raymond, Racicot, & Renaud, CPAs. In an attempt to meet budget, Peter Bossy, the auditor-in-charge, left out the review of closing procedures. His Group Partner's review notwere 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:

Default

Failure to fulfill a financial obligation, such as not making scheduled loan payments, leading to potential legal consequences or credit score impact.

Shirking

The act of avoiding or evading work and responsibilities, often in employment contexts.

Incentive Contracts

Contracts that promise a certain payback as a result of achieving set performance targets, thereby motivating the involved parties to reach specific outcomes.

Monitoring

The continuous or regular observation and recording of activities or processes for the purpose of ensuring compliance with standards or progress toward objectives.