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Assume that you work for an audit firm which is considering to audit Funtastic Limited, an ASX-listed company. The 2017 Annual Report of Funtastic Limited can be accede using the following link. The audit firm you work for has never audited a legal firm in the past. https://www.asx.com.au/asxpdf/20171110/pdf/43p3wd623h59s4.pdf
1. Assume Funtastic Limited has tight key performance indicators (KPI) for sales. Executive management and sales staff are remunerated, and their performance is evaluated based on revenue generated and net income made. Identify and discuss ethical issues that are likely to stem from KPIs in place and how they might affect the auditor’s plan.
1. Assume Funtastic Limited has tight key performance indicators (KPI) for sales. Executive management and sales staff are remunerated, and their performance is evaluated based on revenue generated and net income made. Identify and discuss ethical issues that are likely to stem from KPIs in place and how they might affect the auditor’s plan.
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Title: KPI AUDITING
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