6) Individuals or entities the auditor knew or should have known and would rely on the audit report in making business and investment decisions are…
In connection with the audit of financial statements, an independent auditor could be responsible for failure to detect a material fraud if:…
(Assertions) In planning the audit of a client’s financial statements, an auditor identified the following issues that need attention.…
The auditor must obtain sufficient appropriate audit evidence by performing audit procedures to afford a reasonable basis for an opinion regarding the financial statements under audit. | There were not notes written by the students prior to the financial…
B. May accept the engagement but should disclaim an opinion because of an inability to apply the procedures considered necessary.…
Describe the circumstances in an explanatory paragraph preceding the opinion paragraph, and modify the scope and opinion paragraphs.…
Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts, tests of the physical existence of inventories, and direct confirmation of receivables and payables and certain other assets and liabilities by correspondence with selected customers, creditors, and financial institutions. Also, we will plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. Because an audit is designed to provide reasonable, but not absolute, assurance and because we will not perform a detailed examination of all transactions, there is a risk that material errors, fraud, or illegal acts, may exist and not be detected by us. In addition, an audit is not designed to detect immaterial errors, fraud, or other illegal acts or illegal acts that…
11. Due to recurring operating losses and working capital deficiencies, an auditor has substantial doubt…
In a narrative format, discuss the key facts and critical issues presented in the case.…
The management has the final responsibility for the integrity of internal controls. The client prepares the financial statements and the management makes certain claims or assertions about these numbers. The auditor's validate the management's assertions by identifying audit objectives, which are the auditor's version of assertions on the financial statements. The auditors are hired by the audit committee, which is comprised of key members with financial expertise and not the management. The audit committee relies on the management to run the daily operations of the business, and maintain quality and integrity of the accounting and reporting practices, internal controls, and financial statements. The management is also responsible for legal and regulatory compliance, the auditors’ qualifications and independence, and the performance of the company’s internal audit function and independent auditors. The audit committee is responsible for the oversight of all of the above management responsibilities. Other responsibilities of the audit committee include:…
2) STATEMENT OF ISSUE: What is the issue that needs to be decided in this case? Describe…
A CPA issued an unqualified opinion on the financial statements of a company that sold common stock in a public offering subject to the Securities Act of 1933. Based on a misstatement in the financial statements, the CPA is being sued by an investor who purchased shares…
Dissenting opinion (why did the justices disagree with the majority ruling of the case – what reasons did the justices give) ONE PARAGRAPH. [Who wrote Minority Opinion and/or Concurrent…
Provide a description: Describe the situation in enough detail for the reader to understand the background and the issues. Write this description in paragraph form.…
• If those charged with governance or management fail to give this matter the appropriate level of consideration or take the steps necessary under the circumstances, what considerations should the audit engagement team give to the implications of possible fraud or illegal acts on the conduct of the audit?…