Financial statement audit

Mr. Sugam is the managing partner of YGPL, a medium-sized local Accounting firm located outside of Thimphu. Over lunch, he is surprised when his friend Sonam asks him, “Doesn’t it bother you that your clients don’t look forward to seeing their auditors each year? Sugam responded, “Well, auditing is only one of several services we provide. Most of our work for clients does not involve financial statement audits, and our audit clients seem to like interacting with us.”

a. Identify ways in which a financial statement audit adds value for clients.

b. List other services other than audits that YGPL likely provides.

c. Assume YGPL has hired you as a consultant to identify ways in which they can expand their practice. Identify at least one additional service that you believe the firm should provide and explain why you believe this represents a growth opportunity for CPA firms.