Questions from Auditing and Assurance

Q: Comment on the reliability of each of the following examples of audit

Comment on the reliability of each of the following examples of audit evidence. Arrange your answer in the form of a separate paragraph for each item. Explain fully the reasoning employed in judging t...

Q: Analytical procedures are extremely useful throughout the audit. Required

Analytical procedures are extremely useful throughout the audit. Required: a. Explain how analytical procedures are useful in (1) The risk assessment stage of the audit. (2) The substantive procedure...

Q: When analytical procedures disclose unexpected changes in financial relationships relative to prior

When analytical procedures disclose unexpected changes in financial relationships relative to prior years, the auditors consider the possible reasons for the changes. Give several possible reasons for...

Q: Is an independent status possible or desirable for internal auditors as compared

Is an independent status possible or desirable for internal auditors as compared with the independence of a public accounting firm? Explain.

Q: Auditors are required on every engagement to obtain a representation letter from

Auditors are required on every engagement to obtain a representation letter from the client. Required: a. What are the objectives of the client’s representation letter? b. Who should prepare and sign...

Q: Provide at least four examples of specialists whose findings might provide appropriate

Provide at least four examples of specialists whose findings might provide appropriate evidence for the independent auditors.

Q: What would you accept as satisfactory documentary evidence in support of entries

What would you accept as satisfactory documentary evidence in support of entries in the following? a. Sales journal. b. Sales returns journal. c. Voucher or invoice register. d. Payroll journal. e. Ch...

Q: Glover, Inc., engaged Herd & Irwin, CPAs, to

Glover, Inc., engaged Herd & Irwin, CPAs, to assist in the installation of a new computerized production system. Because the firm did not have experienced staff available for the engagement, Herd & Ir...

Q: Jensen, Inc., filed suit against a public accounting firm,

Jensen, Inc., filed suit against a public accounting firm, alleging that the auditors’ negligence\ was responsible for failure to disclose a large defalcation that had been in process for several year...

Q: The public accounting firm of Hanson and Brown was expanding very rapidly

The public accounting firm of Hanson and Brown was expanding very rapidly. Consequently, it hired several staff assistants, including James Small. Subsequently, the partners of the firm became dissati...