Questions from Auditing and Assurance

Q: In December of the current year, Williams Company changed its method

In December of the current year, Williams Company changed its method of accounting for inventory and cost of goods sold from LIFO to FIFO. The account balances shown in the trial balance have already...

Q: The concepts of materiality and pervasiveness are important to auditors in examinations

The concepts of materiality and pervasiveness are important to auditors in examinations of financial statements and expressions of opinion on these statements. Required: How will materiality influenc...

Q: For each of the following departures from GAAP, indicate the type

For each of the following departures from GAAP, indicate the type of opinion that the auditors would issue as well as any modifications that would be made to the standard (unmodified) report. a. A dep...

Q: The auditing standards regarding subsequently discovered facts refers to knowledge obtained after

The auditing standards regarding subsequently discovered facts refers to knowledge obtained after a. The date the fieldwork began. b. The date of the auditor’s report. c. The date of the financial sta...

Q: What factors may indicate that substantial doubt exists about the client’s ability

What factors may indicate that substantial doubt exists about the client’s ability to continue as a going concern?

Q: When auditors wish to issue an unmodified opinion but highlight that the

When auditors wish to issue an unmodified opinion but highlight that the entity changed its method of accounting for software development costs, they would most appropriately identify the change in ac...

Q: Under which of the following conditions can a disclaimer of opinion never

Under which of the following conditions can a disclaimer of opinion never be issued? a. The entity’s going-concern problems are highly material and pervasive. b. The entity does not allow the auditors...

Q: What actions should auditors take if evidence suggests that substantial doubt exists

What actions should auditors take if evidence suggests that substantial doubt exists about the client’s ability to continue as a going concern?

Q: Which of the following is not required by generally accepted auditing standards

Which of the following is not required by generally accepted auditing standards? a. Written representations. b. Attorney letter. c. Management letter. d. Engagement letter.

Q: How is the auditors’ responsibility for expressing the opinion on financial statements

How is the auditors’ responsibility for expressing the opinion on financial statements disclosed in the standard (unmodified) report for a nonpublic company? a. Stated explicitly in the Auditor’s Resp...