Questions from Auditing and Assurance

Q: The following client-prepared bank reconciliation is being examined by Zachary

The following client-prepared bank reconciliation is being examined by Zachary Kallick, CPA, during the examination of the financial statements of Simmons Company. Required: Items (a) through (e) re...

Q: To support financial statement assertions, an auditor develops specific substantive procedures

To support financial statement assertions, an auditor develops specific substantive procedures to satisfy or address each assertion. Required: Items (a) through (c) represent assertions for the prope...

Q: Items 1 through 16 represent a series of unrelated statements, questions

Items 1 through 16 represent a series of unrelated statements, questions, excerpts, and comments taken from various parts of an auditor’s working paper file. Below items 1 through 16 is a list of the...

Q: To support financial statement assertions, an auditor develops specific audit procedures

To support financial statement assertions, an auditor develops specific audit procedures to satisfy or accomplish each assertion. Required: Items (a) through (c) represent assertions for investments....

Q: The questions that follow are based on the Independence Rule of the

The questions that follow are based on the Independence Rule of the AICPA Code of Professional Conduct as it relates to independence and family relationships. Check yes if the situation violates the r...

Q: For what types of actions are auditors liable to a client under

For what types of actions are auditors liable to a client under common law? Why would the client prefer to sue the auditor for a tort action rather than for a breach of contract?

Q: What types of services can be performed under Statements on Standards for

What types of services can be performed under Statements on Standards for Accounting and Review Services?

Q: The FASB’s revised standard on leases, ASC 842, was effective

The FASB’s revised standard on leases, ASC 842, was effective for public companies beginning 2018. One significant implication of this standard is that operating leases that were previously kept off t...

Q: The long-term debt working paper shown below was prepared by

The long-term debt working paper shown below was prepared by entity personnel and audited by Andy Fogelman, an audit assistant, during the calendar year 2018 audit of American Widgets, Inc., a continu...

Q: Pierce, an independent auditor, was engaged to examine the financial

Pierce, an independent auditor, was engaged to examine the financial statements of Wong Construction, Inc., for the year ended December 31. Wong’s financial statements reflect a substantial amount of...