The audit firm of Guiseppe Mulciber, Dottore Commercialista, has been asked to bid on an annual…

The audit firm of Guiseppe Mulciber, Dottore Commercialista, has been asked to bid on an annual audit of the financial statements of Mammon, a publicly traded gold jewellery manufacturer. The Mulciber firm has been performing assurance services for Mammon over the past there years. Almost everyone on the audit team has investments in stocks and mutual funds. Mammon and the Mulciber had disputes in the past about the extent of assurance services provided. One of the members of the proposed audit staff was an employee of Mammon until 14 months ago. Only one person on the proposed audit team had audited a jewellery manufacturer. Required:

A. What procedures would Mulciber conduct to determine independence of the firm and audit team?

B. Does the Mulciber audit team have the proper competencies? Explain.

C. What circumstances might disqualify Mulciber from serving as an auditor for Mammon?  

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