Questions from Auditing and Assurance

Q: Morgan, CPA, is approached by a prospective audit client who

Morgan, CPA, is approached by a prospective audit client who wants to engage Morgan to perform an audit for the current year. In prior years, this prospective client was audited by another CPA. Identi...

Q: Distinguish between prepaid expenses and intangible assets. Give two examples of

Distinguish between prepaid expenses and intangible assets. Give two examples of each.

Q: Identify three substantive analytical procedures that can be used to audit property

Identify three substantive analytical procedures that can be used to audit property, plant, and equipment.

Q: Distinguish between accounting changes that affect consistency and changes that do not

Distinguish between accounting changes that affect consistency and changes that do not. To what does the word consistency refer? How is it possible for an accounting change to affect comparability but...

Q: Give examples of a client-imposed and a condition-imposed

Give examples of a client-imposed and a condition-imposed scope limitation. Why is a client-imposed limitation generally considered more serious?

Q: How does the materiality of a departure from GAAP affect the auditor’s

How does the materiality of a departure from GAAP affect the auditor’s choice of financial statement audit reports?

Q: In 2017, your firm issued an unmodified report on Tosi Corporation

In 2017, your firm issued an unmodified report on Tosi Corporation, a private company. During 2018, Tosi entered its first lease transaction, which you have determined is material but not pervasive. T...

Q: What are the auditor’s responsibilities for other information included in an entity’s

What are the auditor’s responsibilities for other information included in an entity’s annual report?

Q: If the auditor determines that other information contained with the audited financial

If the auditor determines that other information contained with the audited financial statements is incorrect and the client refuses to correct the other information, what actions can the auditor take...

Q: List three examples of “special reports.”

List three examples of “special reports.”