Question 1: Assume that you are auditing a public company after December 31, 2016 and had a question about auditing inventory. Where would you look for your answer?
Question 2: We discussed the fact that auditing firms registered with the PCAOB are inspected by the PCAOB on a regular basis and the inspection reports are made public. Seehttps://pcaobus.org/Inspections/Reports/Documents/2015_Grant_Thornton.pdf .
How many audits did the PCAOB inspect?
Question 3: Note that reports of this size or longer are issued by the PCAOB each year for all of the national and international auditing firms. Many deficiencies are noted for all of the auditing firms and being addressed by the auditing firms. Many of the areas of concern identified in these reports were addressed in class. For example, see the top of page 13 (first bullet) of the above document. What assertion was not properly tested and why? How could they correct the situation?
Question 4: It only takes a few minutes to read an auditing standard. After this course, the language in the auditing standards should be very familiar to you. Seehttps://pcaobus.org/Standards/Auditing/Pages/AS2310.aspx and answer the next few questions. Provide your answer and the specific citation where the answer is located.
Can a student obtain an oral confirmation from a 3rd party?
Question 5: We learned in class that confirmations in the area of accounts receivable provides the best evidence for the existence assertion. Is this stated in the standard and if so, where?
Question 7: Would an auditor ever confirm the details of the transaction?