Questions from Auditing and Assurance

Q: In obtaining evidence in support of financial statement assertions, the auditor

In obtaining evidence in support of financial statement assertions, the auditor develops specific audit procedures to access those assertions. Required: All’s Fair Appliance Company...

Q: Management makes assertions about components of the financial statements. Match the

Management makes assertions about components of the financial statements. Match the management assertions shown in the left-hand column with the proper description of the assertion shown in the right-...

Q: In obtaining evidential matter in support of financial statement assertions, the

In obtaining evidential matter in support of financial statement assertions, the auditor develops specific audit procedures to address those assertions. Required: Hillmart is a retail department stor...

Q: Assume that scenario (a) in Problem 7-36 is

Assume that scenario (a) in Problem 7-36 is a material weakness. Prepare a draft of the auditor’s report for an audit of ICFR. Assume that Lorenz’s auditor is issuing a separate report on internal con...

Q: You are an audit manager for Lipske & Griffin, CPAs,

You are an audit manager for Lipske & Griffin, CPAs, who is completing the audit of Gold City Regional Bank’s ICFR for the year ended December 31, 2018. The report will be submitted to the engagement...

Q: Mead, CPA, was engaged to audit Jiffy Company’s financial statements

Mead, CPA, was engaged to audit Jiffy Company’s financial statements for the year ended August 31. Mead is applying sampling procedures. During the prior years’ audits Mead used classical variables sa...

Q: Auditors use various audit techniques to gather evidence when an entity’s accounting

Auditors use various audit techniques to gather evidence when an entity’s accounting information is processed using IT. Select the audit procedure from the following list and enter i...

Q: The AICPA performs a number of functions that directly bear on independent

The AICPA performs a number of functions that directly bear on independent auditors of nonpublic entities, including promulgation of rules and standards. List four types of rules or standards issued b...

Q: Why does the “audit testing hierarchy” begin with tests of

Why does the “audit testing hierarchy” begin with tests of controls and substantive analytical procedures?

Q: While net income before taxes is frequently used for calculating overall materiality

While net income before taxes is frequently used for calculating overall materiality, discuss circumstances when total assets or revenues might be better bases for calculating overall materiality.