The assignment is split into 2 parts; part 1 : The Quality Assurance partner at your audit firm has noted some confusion with new starters regarding the process of risk assessment and its importance in the audit. It has been decided that a memo will sent to junior members of staff within the firm. Required: You are to prepare the memo explaining the risk assessment and its importance to the audit. This should be in a concise format using non-technical language. The evaluation should include consideration of: Relevant ISAs The impact of materiality Risk assessment procedures The concept of ‘professional scepticism’ Part 2: Corporate governance has received much media coverage over recent years in relation to numerous high profile frauds. You are a manager in an audit firm. The Managing Director of one of your smaller but rapidly expanding clients (Marvin Ltd) is keen to follow the principles of good corporate governance and is aware that other board members do not have complete knowledge of this. Required You are to create a letter to the directors of Marvin Ltd from the external auditors. This should explore the key issues to address regarding good corporate governance and should be tailored to this particular client. State what actions would be appropriate for this company. REMEMBER IN TASK 2 TO RELATE TO THE CLIENT