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Discuss the nature of audit evidence to be considered by the auditor in terms of the underlying accounting records
Task: Classify by type of audit evidence: (1) directly from outsiders (2) indirectly from outsiders (3) internal but validated externally (4) entirely internal.
Task: What assertion is related to each issue? 1. The allowance for doubtful accounts is a fair amount.
For each, indicate the assertion: Inventories are properly at the lower of cost or market. Inventory includes all items on hand.
(Audit evidence) In an audit of financial statements, an auditor must judge the validity of the audit evidence obtained.
Describe the trends identified by performing analytical procedures in the gross operating cycle, the net operating cycle, and gross margin.
Anyone identified to the auditor by name prior to the audit who is the principal recipient of the auditor's report is a
Obtain an understanding of the company, its internal control, and its audit risk factors (including the risk of material misstatements due to fraud).
Problem: Which of the following describes the internal control component "control procedures"?
How did the internal systems and processes support or inhibit Enron's strategy?
Management acknowledgements its responsibility for the fairness of the financial statements in accordance with a reporting framework (US GAAP).
Access Dole's 2009 10K (filed in 2010) from the SEC's website (www.sec.gov). 1. What is Dole's fiscal year-end?
Question: Describe the typical documents and controls present in the finance and investment cycle.
An explanation of reliance on the reports of other auditors is an illustration of report departures referred to as
An auditor should normally perform alternative procedures to substantiate the existence of accounts receivable when
Which do you think matters more to Fisher's board of directors: internal or external auditing? Why do you think so?
Do you believe that a public accounting company can be truly independent if they are being paid by the client to audit the financial statements?
Question: What should auditors do if their evidence is questioned? If someone thinks that the evidence is actually NOT persuasive.
Why is sampling so important? Some people have argued that sampling is not beneficial, because important aspects of the population may be omitted.
Critically evaluate whether or not the reforms will address the problems of independence and reliability of the audited financial statements.
Identify which of the conditions requiring a modification of or a deviation from an unqualified standard report is applicable.
Why would the owner of Lakeside as well as the company's banks require that an independent CPA firm perform an annual audit?
Task: Audit Information: Tetonic Metals Company a. How do you, as the auditor, know that all minutes have been made available to you?
Problem: As part of the audit of different audit areas, auditors should be alert for the possibility of unrecorded liabilities.
Is the purchasing function performed by personnel who are independent of the receiving and shipping functions and the payables and disbursing functions?