Questions from Auditing and Assurance

Q: What is the International Auditing and Assurance Standards Board? What is

What is the International Auditing and Assurance Standards Board? What is the purpose of its pronouncements? Do these pronouncements establish standards that override a member nation’s auditing standa...

Q: You are a partner in the Denver office of a national public

You are a partner in the Denver office of a national public accounting firm. During the audit of Mountain Resources, you learn that this audit client is negotiating to sell some of its unproved oil an...

Q: Contrast the roles of the AICPA and the PCAOB in the development

Contrast the roles of the AICPA and the PCAOB in the development of auditing standards.

Q: Davis & Co., Certified Public Accountants, after completing an audit

Davis & Co., Certified Public Accountants, after completing an audit of Samson Company, decided that it would be unable to issue an unmodified opinion. What circumstances might explain this decision?...

Q: State the principal assertions made by the auditors in the “Opinion

State the principal assertions made by the auditors in the “Opinion on the Financial Statements” section of the PCAOB auditors’ standard report. Assume that the auditors issued a separate report on in...

Q: Alan Weston, CPA, completed an audit of Kirsten Manufacturing Company

Alan Weston, CPA, completed an audit of Kirsten Manufacturing Company and issued a standard audit report. What does this tell us about the extent of the auditing procedures included in the audit?

Q: When a CPA firm completes an audit of a nonpublic business and

When a CPA firm completes an audit of a nonpublic business and issues a report, does it express an opinion on the client’s accounting records, financial statements, or both? Give reasons.

Q: What disclosures should be made in the financial statements regarding material related

What disclosures should be made in the financial statements regarding material related party transactions?

Q: A CPA firm does not guarantee the financial soundness of a client

A CPA firm does not guarantee the financial soundness of a client when it renders an opinion on financial statements, nor does the CPA firm guarantee the absolute accuracy of the statements. Yet the C...

Q: If a CPA firm has performed a thorough professional audit of a

If a CPA firm has performed a thorough professional audit of a client’s financial statements, should it not be able to issue a report dealing with facts rather than the mere expression of an opinion?...