Questions from Auditing and Assurance

Q: Bigdeal Corporation manufactures paper and paper products and is trying to decide

Bigdeal Corporation manufactures paper and paper products and is trying to decide whether to purchase Smalltek Company. Smalltek has developed a process for manufacturing boxes that can replace contai...

Q: Your neighbor, Loot Starkin, invited you to lunch yesterday.

Your neighbor, Loot Starkin, invited you to lunch yesterday. Sure enough, it was no “free lunch” because Loot wanted to discuss the annual report of Dodge Corporation. He owns Dodge stock and just rec...

Q: Audits may be characterized as (a) financial statement audits,

Audits may be characterized as (a) financial statement audits, (b) compliance audits, (c) economy and efficiency audits, and (d) program results audits. The work can be done by independent (external)...

Q: What are the two primary ways to conduct substantive tests? Explain

What are the two primary ways to conduct substantive tests? Explain how the tests are different.

Q: List and briefly explain each of the Auditing Standards Board’s management assertions

List and briefly explain each of the Auditing Standards Board’s management assertions. List at least one key question that auditors must answer with evidence related to each management assertion.

Q: You are engaged to examine the financial statements of Spillane Company for

You are engaged to examine the financial statements of Spillane Company for the year ended December 31. Assume that on November 1, Spillane borrowed $500,000 from Second National Bank to finance plant...

Q: What is an audit committee? What are its duties?

What is an audit committee? What are its duties?

Q: Each state has unique rules for certification concerning education, work experience

Each state has unique rules for certification concerning education, work experience, and residency. Visit the website for your state board of accountancy and download a list of the requirements for be...

Q: What type of opinion(s) would the audit team issue

What type of opinion(s) would the audit team issue on the effectiveness of internal control over financial reporting if a material weakness in internal control exists? How would the standard report be...

Q: Cutoff tests designed to detect valid sales that occurred before the end

Cutoff tests designed to detect valid sales that occurred before the end of the year but have been recorded in the subsequent year would provide assurance about management’s assertion of a. Presentati...