Questions from Auditing and Assurance

Q: Sawyer and Sawyer, CPAs, audited the financial statements of Rattler

Sawyer and Sawyer, CPAs, audited the financial statements of Rattler Corporation that were included in Rattler’s Form 10-K, which was filed with the SEC. Subsequently, Rattler Corporation went bankrup...

Q: Distinguish between a compliance audit and an operational audit.

Distinguish between a compliance audit and an operational audit.

Q: The international CPA firm of Arthur Andersen faced significant liability in conjunction

The international CPA firm of Arthur Andersen faced significant liability in conjunction with its audits of Enron Corporation. Required: a. From a legal liability perspective, describe the unique fea...

Q: Gordon & Moore, CPAs, were the auditors of Fox &

Gordon & Moore, CPAs, were the auditors of Fox & Company, a brokerage firm. Gordon & Moore examined and reported on the financial statements of Fox, which were filed with the Securities and Exchange C...

Q: Use of data analytics is likely to increase the use of sampling

Use of data analytics is likely to increase the use of sampling and eliminate the audit of all items in a population.” Comment on the accuracy of this quotation.

Q: Working papers should contain facts and nothing but facts,” said student

Working papers should contain facts and nothing but facts,” said student A. “Not at all,” replied student B. “The audit working papers also may include expressions of opinion. Facts are not always ava...

Q: At 12 o’clock, when the plant whistle sounded, George Jones

At 12 o’clock, when the plant whistle sounded, George Jones, an assistant auditor, had been working on his laptop computer. Jones stopped work immediately, but not wanting to waste a lot of time, he s...

Q: Financial statements contain a number of assertions about account balances, classes

Financial statements contain a number of assertions about account balances, classes of transactions, and disclosures. a. Identify who makes these assertions. b. List and describe each of the assertion...

Q: Marion Watson & Co., CPAs, is planning its audit procedures

Marion Watson & Co., CPAs, is planning its audit procedures for its tests of the valuation of inventories of East Coast Manufacturing Co. The auditors on the engagement have assessed inherent risk and...

Q: In an audit of financial statements, the auditors gather various types

In an audit of financial statements, the auditors gather various types of audit evidence. List seven major types of evidence and provide a procedural example of each.