ADO is an audit firm based in Muscat. In the beginning of the year 2018, its audit partner Mr.Khalid al Harthy has signed an MOU with a private university in Nisswa, to facilitate internship program for its thirty Accounting graduate students.
You are currently working in ADO as a senior auditor and your audit manager has assigned you to carry out the necessary training for the university students during their internship. The purpose of an external audit and its role are not well understood by the students. You have been asked to write some material for inclusion in your firms training program.
Required:
Why external audit is not compulsory for all companies in Oman? Also Draft an explanation dealing with the purpose of an external audit and its role in the audit of large listed companies, for inclusion in your firms training materials.
Note: In your answer, you need to include the discussion of agency relationship, along with its connection between shareholders, Board of Directors and external auditors in a listed company using some practical examples.
Sample Solution
