Questions from Auditing and Assurance

Q: Harris Fell, CPA and member of the AICPA, was engaged

Harris Fell, CPA and member of the AICPA, was engaged to audit the financial statements of Wilson Corporation. Fell had half-completed the audit when he had a dispute with the management of Wilson Cor...

Q: What is a “material” amount from the perspective of auditors

What is a “material” amount from the perspective of auditors? Give an example of how that amount may differ based on the nature of the item.

Q: Explain how the auditors determine whether a client’s accounting is appropriate when

Explain how the auditors determine whether a client’s accounting is appropriate when the FASB Codification includes no specific guidance with respect to accounting for a particular type of transaction...

Q: The International Bank of Commerce (IBC) is an audit client

The International Bank of Commerce (IBC) is an audit client of your public accounting firm. IBC is a multinational financial institution that operates in 23 countries. During the current year’s audit,...

Q: Do the AICPA attestation standards supersede any of the AICPA generally accepted

Do the AICPA attestation standards supersede any of the AICPA generally accepted auditing standards? Explain.

Q: What is the meaning of quality control and peer review as these

What is the meaning of quality control and peer review as these terms relate to the operation of a CPA firm? Is peer review mandatory? Explain.

Q: What is the difference between generally accepted accounting principles (GAAP)

What is the difference between generally accepted accounting principles (GAAP) and AICPA generally accepted auditing standards (GAAS)?

Q: Explain the basic objective of establishing quality control procedures in the following

Explain the basic objective of establishing quality control procedures in the following areas. a. Engagement performance. b. Human resources. c. Monitoring.

Q: Evaluate the following statement: “Identifying related parties and obtaining a

Evaluate the following statement: “Identifying related parties and obtaining a client representation letter are two required audit procedures normally performed on the last day of fieldwork.”

Q: Do the AICPA’s Statements on Quality Control Standards require every CPA firm

Do the AICPA’s Statements on Quality Control Standards require every CPA firm to implement similar quality control procedures? Explain.