Questions from Auditing and Assurance

Q: As part of the verification of accounts receivable as of the balance

As part of the verification of accounts receivable as of the balance sheet date, the auditors might inspect copies of sales invoices. Similarly, as part of the verification of accounts payable, the au...

Q: Evaluate the following statement: A canceled check is not considered particularly

Evaluate the following statement: A canceled check is not considered particularly reliable evidence because the check was prepared within the client’s organization.

Q: When in the course of an audit might the auditors find it

When in the course of an audit might the auditors find it useful to apply analytical procedures?

Q: As a result of a number of events that caused Congress to

As a result of a number of events that caused Congress to doubt the ability of the accounting profession to regulate itself, a number of reforms were made to the accounting profession’s system of self...

Q: A corporation is contemplating issuing debenture bonds to a group of investors

A corporation is contemplating issuing debenture bonds to a group of investors. Required: a. Explain how independent audits of the corporation’s financial statements facilitate this transaction. b. D...

Q: The Sarbanes-Oxley Act of 2002 created the Public Company Accounting

The Sarbanes-Oxley Act of 2002 created the Public Company Accounting Oversight Board. Explain the major responsibilities of this board.

Q: The self-interest of the provider of financial information (whether

The self-interest of the provider of financial information (whether an individual or a business entity) often runs directly counter to the interests of the user of the information. Required: a. Give...

Q: While the AICPA administers a peer review program for CPA firms,

While the AICPA administers a peer review program for CPA firms, the PCAOB staff performs practice inspections. Required: a. Identify the two basic types of peer review. b. On what part of a firm’s p...

Q: Various organizations develop standards for audits and regulate CPA firms. Compare

Various organizations develop standards for audits and regulate CPA firms. Compare and contrast the roles of the AICPA, the PCAOB, and the state boards of accountancy along the following dimensions:...

Q: What does an operational audit attempt to measure? Does an operational

What does an operational audit attempt to measure? Does an operational audit involve more or fewer subjective judgments than a compliance audit or an audit of financial statements? Explain. To whom is...