Questions from Auditing and Assurance

Q: Distinguish between a contingent liability and an actual liability and give three

Distinguish between a contingent liability and an actual liability and give three examples of each.

Q: The cost accounting records are often an essential area to audit in

The cost accounting records are often an essential area to audit in a manufacturing or construction company. Required a. Why should the auditor review the cost accounting records and test their accur...

Q: The following questions concern internal controls in the acquisition and payment cycle

The following questions concern internal controls in the acquisition and payment cycle. Choose the best response. a. A client erroneously recorded a large purchase twice. Which of the following intern...

Q: In the audit of the James Mobley Company, you are concerned

In the audit of the James Mobley Company, you are concerned about the possibility of contingent liabilities resulting from income tax disputes. Discuss the procedures you could use for an extensive in...

Q: Explain why an auditor is interested in a client's future commitments to

Explain why an auditor is interested in a client's future commitments to purchase raw materials at a fixed price.

Q: Explain why the analysis of legal expense is an essential part of

Explain why the analysis of legal expense is an essential part of every audit.

Q: During the audit of the Merrill Manufacturing Company, Ralph Pyson,

During the audit of the Merrill Manufacturing Company, Ralph Pyson, CPA, has become aware of four lawsuits against the client through discussions with the client, reading corporate minutes, and review...

Q: Distinguish between an asserted and an unasserted claim. Explain why a

Distinguish between an asserted and an unasserted claim. Explain why a client's attorney may not reveal an unasserted claim.

Q: Describe the action that an auditor should take if an attorney refuses

Describe the action that an auditor should take if an attorney refuses to provide information that is within the attorney's jurisdiction and may directly affect the fair presentation of the financial...

Q: Distinguish between the two general types of subsequent events and explain how

Distinguish between the two general types of subsequent events and explain how they differ. Give two examples of each type.