Questions from Auditing and Assurance


Q: The firm of Schilling & Co., CPAs, has offices in

The firm of Schilling & Co., CPAs, has offices in Chicago and Green Bay, Wisconsin. Gillington Company, which has 1 million shares of outstanding stock, is audited by the Chicago office of Schilling;...

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Q: Gloria and Deloria, CPAs, have recently started their public accounting

Gloria and Deloria, CPAs, have recently started their public accounting firm and intend to provide attestation and a variety of consulting services for their clients, which are all nonpublic. Both Ms....

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Q: Dandy Container Corporation engaged the accounting firm of Adams and Adams to

Dandy Container Corporation engaged the accounting firm of Adams and Adams to audit financial statements to be used in connection with an interstate public offering of securities. The audit was comple...

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Q: Assume that in a particular audit the CPAs were negligent but not

Assume that in a particular audit the CPAs were negligent but not grossly negligent. Indicate whether they would be “liable” or “not liable” for the following losses proximately caused by their neglig...

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Q: Match the important cases listed below with the appropriate legal precedent or

Match the important cases listed below with the appropriate legal precedent or implication. Case: a. Hochfelder v. Ernst b. Escott v. BarChris Construction Corp. c. Credit Alliance v. Arthur Andersen...

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Q: Items (a) through ( f ) relate to what a

Items (a) through ( f ) relate to what a plaintiff who purchased securities must prove in a civil liability suit against a CPA. For each item, determine whether it must be proved assuming application...

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Q: For each definition (or portion of a definition) in the

For each definition (or portion of a definition) in the first column, select the term that most closely applies. Each term may be used only once or not at all.

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Q: Select the best answer for each of the following questions. Explain

Select the best answer for each of the following questions. Explain the reasons for your selection. a. Which of the following is not a financial statement assertion made by management? (1) Existence o...

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Q: Why is studying auditing different from studying other accounting topics? How

Why is studying auditing different from studying other accounting topics? How might understanding auditing concepts prove useful for consultants, business managers, and other business decision makers?...

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Q: What role does the SEC play in the establishment of accounting and

What role does the SEC play in the establishment of accounting and auditing standards for public companies?

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