Auditing

The privately owned company that you work for has been awarded a contract that will require submission of the company’s audited financial statements. The owner of the company is not familiar with audits and audited financial statements. As the Controller, prepare a 700-1,050-word report to the owner explaining the work of indepe ...continues

Audit: 40 multiple choice covering a wide range of comprehensive audit topics.

Audit questions 1 Which of the following procedures would an auditor least likely perform before the balance sheet date? a. Confirmation of accounts payable. b. Observation of merchandise inventory. c. Assessment of control risk. d. Identification of related parties. 2 An auditor traced a sample of purchase orders and ...continues

Auditing & assurance services

Knowing that my company 2007 audit will include attestation services, I want to know more about what attestation services encompass and what my team and I can do to prepare for this service. Brainstorm with the auditing department about these: What are attestation services? What may I request from the CPA firm in regard ...continues

Auditing Questions - Risk Assessment

3.46 Risk Assessment. This question consists of 15 items pertaining to an auditor’s risk analysis for a company. Your task is to tell how each item affects overall audit risk—the probability of giving an unqualified audit report on materially misleading financial statements. Bond, CPA, is considering audit risk at the financ ...continues

Auditing

SEC filings of certain public companies can be accessed from EDGAR (electronic Data Gathering and Retrieval System), which has the following Internet address: www.sec.gov/edgar.shtml. a) Use EDGAR to locate a company in the software industry. b) Access the latest Form 10-K for the company and read “Management’s Discussion ...continues

Auditing - Securities Exchange Act

The text of the Securities Exchange Act of 1934 may be accessed on the Internet, using the following address: www.law.uc.edu/CCL/34Act/index.html. a. Use the Internet to access the text of Securities Exchange Act of 1934. b. Read and summarize the internal control requirements of Section 13(b) (2) of the act.

Auditing: should a letter of representation by management be disclosed to shareholders?

SAS No. 85, requires that an auditor obtain a management representation letter that is addressed to the auditor, and signed by members of management with overall financial and operating responsibility. The representation letter includes : 1. management's acknowledgment of responsibility for the financial statements. 2. ...continues

Subsequent events review of auditor responsibilities

An auditor is concerned with the balance sheet as of a particular date, such at 12/31. Sometimes events occur or become know subsequent to the balance sheet date and before the issuance of the audit report. An auditor's responsibility for subsequent events and related audit procedures is addressed in the AICPA's Codificat ...continues

Auditing - Multiple Choice

1. Which of the following statements is correct concerning an auditor’s responsibilities regarding financial statements? a. Making suggestions that are adopted about the form and content of an entity’s financial statements impairs an auditor’s independence. b. An auditor may draft an entity’s financial statements based on info ...continues

Auditing - Internal Control – Transaction Cycles

13. For effective internal control, the accounts payable department generally should a. Stamp, perforate, or otherwise cancel supporting documentation after payment is mailed. b. Ascertain that each requisition is approved as to price, quantity, and quality by an authorized employee. c. Obliterate the quantity ordered on the ...continues