Questions from Auditing and Assurance

Q: Identify three expense accounts that are verified during the audit of balance

Identify three expense accounts that are verified during the audit of balance sheet accounts; also, identify the related balance sheet accounts.

Q: For which expense accounts should the auditors obtain or prepare analyses to

For which expense accounts should the auditors obtain or prepare analyses to be used in preparation of the client’s income tax returns?

Q: When you are first retained to audit the financial statements of Wabash

When you are first retained to audit the financial statements of Wabash Company, you inquire whether a budget is used to control costs and expenses. The controller, James Lowe, replies that he persona...

Q: What auditing procedure can you suggest for determining the reasonableness of selling

What auditing procedure can you suggest for determining the reasonableness of selling, general, and administrative expenses?

Q: Describe how the auditors use analytical procedures in the examination of selling

Describe how the auditors use analytical procedures in the examination of selling, general, and administrative expenses.

Q: What division of duties among independent departments is desirable to achieve maximum

What division of duties among independent departments is desirable to achieve maximum internal control over payroll?

Q: Comment on whether you agree with the following, and why:

Comment on whether you agree with the following, and why: An audit report on comparative financial statements ordinarily compares current-year financial statements of two or mor companies with one ano...

Q: What are the two circumstances that result in modified opinions?

What are the two circumstances that result in modified opinions?

Q: Comment on the following: “If the financial statements contain an

Comment on the following: “If the financial statements contain an immaterial departure from generally accepted accounting principles, the auditors issue a qualified opinion; if the financial statement...

Q: Describe the difference between sampling risk and nonsampling risk.

Describe the difference between sampling risk and nonsampling risk.