Questions from Auditing and Assurance

Q: If the entity is subject to PCAOB requirements regarding communication about control

If the entity is subject to PCAOB requirements regarding communication about control deficiencies (AS 1305), what written representations should auditors obtain from the client with respect to interna...

Q: Classify each of the following issues according to whether they will be

Classify each of the following issues according to whether they will be (1) included in written representations in all audits, (2) included in written representations in audits of public entities (und...

Q: The firm of Cole & Cole, CPAs, is auditing the

The firm of Cole & Cole, CPAs, is auditing the financial statements of Consolidated Industries Co. for the year ended December 31, 2017. On March 6, 2018, C. R. Brown, Consolidated’s chief financial o...

Q: Faye Jaworski, CPA, is auditing the financial statements of Fulbright

Faye Jaworski, CPA, is auditing the financial statements of Fulbright Company. As she is nearing the audit completion date, Jaworski realizes that she needs to evaluate whether all material contingenc...

Q: Aaron Rivers, CPA, is auditing the financial statements of Charger

Aaron Rivers, CPA, is auditing the financial statements of Charger Company, a client for the past five years. During past audits of Charger, Rivers identified some immaterial misstatements (most of wh...

Q: During the conduct of an audit, auditors may identify misstatements as

During the conduct of an audit, auditors may identify misstatements as a result of the completion of their substantive procedures. An important activity performed in the completion stages of the audit...

Q: Pat Colt is auditing the financial statements of Manning Company. The

Pat Colt is auditing the financial statements of Manning Company. The following is a summary of the uncorrected misstatements that Colt has identified during the past three years. These misstatements...

Q: Subsequent knowledge of which of the following would cause the entity to

Subsequent knowledge of which of the following would cause the entity to adjust its December 31 financial statements? a. Sale of an issue of new stock for $500,000 on January 30. b. Settlement of a da...

Q: The following subsequent event was disclosed in Dole Food Company’s 2009 annual

The following subsequent event was disclosed in Dole Food Company’s 2009 annual report: Note 24: Subsequent Event On February 27, 2010, a significant earthquake struck the country of Chile. Although...

Q: Officers of Richnow Company do not wish to disclose information about a

Officers of Richnow Company do not wish to disclose information about a product liability lawsuit filed by a customer seeking $500,000 in damages. They believe the suit is frivolous and without merit....