Questions from Auditing and Assurance


Q: Apart from auditing, what other professional services are offered by public

Apart from auditing, what other professional services are offered by public accounting firms?

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Q: Meglow Corporation, a closely held manufacturer of dresses and blouses,

Meglow Corporation, a closely held manufacturer of dresses and blouses, sought a loan from Busch Factors. Busch had previously extended $50,000 credit to Meglow but refused to lend any additional mone...

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Q: Joe Rezzo, a college student majoring in accounting, helped finance

Joe Rezzo, a college student majoring in accounting, helped finance his education with a parttime job maintaining all accounting records for a small business, White Company, located near the campus. U...

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Q: Feller, the sole owner of a small hardware business, has

Feller, the sole owner of a small hardware business, has been told that the business should have its financial statements audited by an independent CPA. Feller, having some bookkeeping experience, has...

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Q: In a discussion between Peters and Ferrel, two auditing students,

In a discussion between Peters and Ferrel, two auditing students, Peters made the following statement: “A CPA is a professional person who is licensed by the state for the purpose of providing an inde...

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Q: What are related party transactions?

What are related party transactions?

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Q: Bart James, a partner in the CPA firm of James and

Bart James, a partner in the CPA firm of James and Day, received the following memorandum from John Gray, president of Gray Manufacturing Corporation, an audit client of many years. Dear Bart: I have...

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Q: The following appeared in a brief article in a major business newspaper

The following appeared in a brief article in a major business newspaper: A local court is in the process of ruling on whether the public accounting firm of James Willis and Co., CPAs, PC, should be re...

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Q: The issue of whether the performance of nonattest (consulting) services

The issue of whether the performance of nonattest (consulting) services for audit clients impairs independence of the auditors has been widely debated within the public accounting profession. Restrict...

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Q: You are the partner-in-charge of a large metropolitan

You are the partner-in-charge of a large metropolitan office of a regional public accounting firm. Two members of your professional staff have come to you to discuss problems that may affect the firm’...

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