Questions from Auditing and Assurance


Q: Schoeck, CPA, is considering leaving a position at a major

Schoeck, CPA, is considering leaving a position at a major public accounting firm to join the staff of a local bookkeeping and advisory firm that does write-up work, tax preparation and planning, and...

See Answer

Q: oration and Watson Corporation, publicly held companies traded on NASDAQ.

oration and Watson Corporation, publicly held companies traded on NASDAQ. Watson recently acquired Lestrad Corporation in a merger that involved swapping 1.75 shares of Watson for 1 share of Lestrad....

See Answer

Q: Identify two substantive analytical procedures that can be used to audit prepaid

Identify two substantive analytical procedures that can be used to audit prepaid insurance.

See Answer

Q: Critics of the Sarbanes-Oxley Act do not believe the Act

Critics of the Sarbanes-Oxley Act do not believe the Act will be effective at deterring accounting frauds because it primarily relies on specifying new crimes and higher penalties (i.e., increasing th...

See Answer

Q: AT-C Section 315, “Compliance Attestation,” allows a

AT-C Section 315, “Compliance Attestation,” allows a practitioner to perform agreed-upon procedures to assist users in evaluating management’s written assertions about (1) the entity’s compliance with...

See Answer

Q: Visit the website of another catalog retailer similar to Earth Wear Clothiers

Visit the website of another catalog retailer similar to Earth Wear Clothiers, and determine what useful lives and depreciation methods are used for property, plant, and equipment. Compare those metho...

See Answer

Q: Both Intel (www.intel.com) and Microsoft (

Both Intel (www.intel.com) and Microsoft (www.microsoft.com) have large amounts of investment securities. Visit their home pages, and review their financial statements for information on how they acco...

See Answer

Q: Visit the AICPA’s website (www.aicpa.org), under

Visit the AICPA’s website (www.aicpa.org), under “Research,” and then “Standards.” Click on “Code of Professional Conduct.” Find the Independence Rule and its related interpretations in Part 1 of the...

See Answer

Q: A number of companies have pending lawsuits or other contingent liabilities reported

A number of companies have pending lawsuits or other contingent liabilities reported in their financial statements. Required: a. Search the EDGAR database found at http://www.sec.gov/edgar/searchedg...

See Answer

Q: The IIA maintains its own website containing useful information about the Institute

The IIA maintains its own website containing useful information about the Institute and the internal auditing profession in general. Visit the IIA’s home page (www. theiia.org). Required: a. Under th...

See Answer