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:

Pure Competition

A market structure characterized by a large number of sellers offering identical products, where no single seller can influence market prices.

Substitutes

Products or services that can serve as replacements for each other, fulfilling the same need or desire.

Market Segments

Groups of potential customers with similar needs, wants, and characteristics that a company targets with its products or services.

Deep Discounts

Significant reductions in price offered to consumers, often to clear inventory or boost sales temporarily.