Questions from Auditing and Assurance


Q: You are asked by a client to outline the procedures you would

You are asked by a client to outline the procedures you would recommend for handling of unclaimed wages. What procedures do you recommend?

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Q: What specific procedures are suggested by the phrase “test of controls

What specific procedures are suggested by the phrase “test of controls over payroll transactions”?

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Q: Should the auditors make a complete review of all correspondence in the

Should the auditors make a complete review of all correspondence in the client’s files? Explain.

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Q: What is the purpose of analytical procedures performed as a part of

What is the purpose of analytical procedures performed as a part of the overall review?

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Q: List the audit procedures that should be completed near the date of

List the audit procedures that should be completed near the date of the audit report.

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Q: What are loss contingencies? How are such items presented in the

What are loss contingencies? How are such items presented in the financial statements? Explain.

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Q: What is the usual procedure followed by the CPA in obtaining evidence

What is the usual procedure followed by the CPA in obtaining evidence regarding pending and threatened litigation against the client?

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Q: Describe what is meant by a sequential sampling plan.

Describe what is meant by a sequential sampling plan.

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Q: Explain how a loss contingency exists with respect to an unasserted claim

Explain how a loss contingency exists with respect to an unasserted claim. Should unasserted claims be disclosed in the financial statements?

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Q: If the federal income tax returns for prior years have not as

If the federal income tax returns for prior years have not as yet been reviewed by federal tax authorities, would you consider it necessary for the client to disclose this situation in a note to the f...

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