Cw 2 Romek Tomek & Atomek

https://rpubs.com/staszkiewicz/cw_3_RTIA_EN

Case study: Romek, Tomek i Atomek

Romek, Tomek i Atomek are a trio of frieds who are audiotrs. They set up their audit company RTZ. The friends are meeting as usual on Monday and discussing the projects oppotunities:

1. Romek was asked by their long-term client English Bank A.G. to provide due dilligence on Krakowski Chleb S.A. the contract terms: value 200 thousand of PLN payable as a lump sum after the delivery of the report.

2. Tomek met his wfie Marta, she wants the financial statements of ThomosnMasters S.A. – their own buisness – to be audited by RTZ with a deadline of Feburary 17. The contract terms are: fee 80 thousand of PLN, Polish auditing standards, financial statements prepared in accordance with IFRS.

3. Atomek has audited the financial statement of Janusz S.A, where the controlling intrest is held by Janusz (60%) and the minority by his wife (40%). During the audit Atomek found out that Janusz S.A. had not dislosed a related party transaction. Janusz S.A. has rented a luxury downtown flat for Marta, a very close friend of Janusz. Janusz, as the CEO, did not allow the disclosure of this transaction, claiming that this kind of disclusre might jeopardise his marrage, as Janusz’s wife is the head of the audit committee of Janusz S.A. Due to above matters RTZ as turned to you for advice.

You are required to:

1. Assess whether, based on the ethics code, the Krakowski Chleb engagment can be conducted.

2. Write a draft of the company board resolution regarding ThomsonMasters outlining the principles of contranct acceptance.

3. Advise Atomek what to do with disclosure issue.