Question Tag: Auditor Nomination

Volta Investigations is an entity specialising in conducting investigations for corporate clients. It employs ex-police officers, security consultants, IT and fraud specialists. Volta Investigations has recently parted company with its firm of auditors and has approached your firm to undertake the audit. You have been provided with the following information:

• Volta Investigations is a major service provider to your firm, particularly in the provision of IT and fraud consultancy.
• Volta Investigations has parted acrimoniously with their previous auditors and are withholding fees, pending the resolution of a number of issues in particular relating to their accusations on the competence of the auditors provided.
• Volta Investigations is facing a hostile take-over at present from the Tamale Investigations Group, a company you also audit.

Required:

(a) Explain the impact of each of the three pieces of information provided above and how these would influence your decision to accept the nomination of auditor for Volta Investigations.

(b) Describe the other factors that you would consider in making a decision as to the acceptance of Volta Investigations as a client.

(c) Describe the steps you would take if you decided to accept the nomination as auditors for Volta Investigations.