Questions from Auditing and Assurance


Q: From the “Inspections” section of the PCAOB’s website, access

From the “Inspections” section of the PCAOB’s website, access the most recent inspection reports for each of the Big Four firms (Deloitte, EY, KPMG, and PwC). Each inspection report contains the follo...

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Q: How is the auditors’ standard (unmodified) report modified for qualified

How is the auditors’ standard (unmodified) report modified for qualified or adverse opinions issued as a result of departures from GAAP?

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Q: Michael Ewing is auditing the financial statements of Dallas Company for the

Michael Ewing is auditing the financial statements of Dallas Company for the year ended December 31, 2017. In concluding the process of gathering sufficient appropriate evidence, Ewing has asked to me...

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Q: Crankwell Inc. is preparing its annual financial statements and annual report

Crankwell Inc. is preparing its annual financial statements and annual report to stockholders. Management wants to be sure that all of the necessary and proper disclosures have been incorporated into...

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Q: You are in the process of completing the gathering of sufficient appropriate

You are in the process of completing the gathering of sufficient appropriate evidence for Top Stove Corporation, a company engaged in the manufacture and sale of kerosene space heaters. To date, there...

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Q: In connection with your examination of the financial statements of Olars Manufacturing

In connection with your examination of the financial statements of Olars Manufacturing Corporation for the year ended December 31, your post balance-sheet substantive procedures disclosed the followin...

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Q: On June 1, Sidney Faultless of A. J. Faultless

On June 1, Sidney Faultless of A. J. Faultless & Co., CPAs, noticed some disturbing information about the firm’s client, Hopkirk Company. A story in the local paper mentioned the indictment of Tony Ba...

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Q: The following are independent situations that have occurred in your public accounting

The following are independent situations that have occurred in your public accounting firm, Arthur Hurdman: Case 1 During the internal inspection by a regional office of Arthur Hurdman, one of its cl...

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Q: Jay Ralph completed the December 31, 2017, audit of Raider

Jay Ralph completed the December 31, 2017, audit of Raider Company on February 3, 2018; Raider’s financial statements and Ralph’s reports on Raider’s financial statements and internal control over fin...

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Q: A. Griffin audited the financial statements of Dodger Magnificat Corporation for

A. Griffin audited the financial statements of Dodger Magnificat Corporation for the year ended December 31, 2017. She completed gathering sufficient appropriate evidence on January 30 and later learn...

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