Creating a Memorandum
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I was invited to discuss the possibility of my firm conducting an audit for Brooks General Motors by the company president, Clara Brown. This is a small manufacturing company that seems to be growing and has never had a CPA conduct an audit of their financials.
When I met with Ms. Brown we discussed an analysis of the recent monthly financial statements, inspection of the accounting records and a discussion of policies with the company's chief accountant. Ms. Brown took me on a guided tour of the facility as well.
Ms. Brown stated that before making a decision on hiring my firm she would like to know how long the audit should take and the cost. She explained that she expected quality work for a fair price; and due to this being Brooks General Motors' first formal audit she asked that I send her a full explanation as to how the cost of the audit is determined as well as an overview of our discussion.
How should the memo be written? What should be said in the memo?
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Solution Summary
The review into creating a MEMO for a business firm auditing services.
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--What do you include in a memorandum to the president of a company requesting your auditing services? How should the memo be written? What should be said in the memo?
The main objective for a MEMO is to outlining pertinent information that supports the subject matter, in which case, the auditing services that can increase efficiency and quality controls. The MEMO should reflect everyone that needs to be aware of the subject matter (auditing services) to making a final ...
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