Questions from Auditing and Assurance

Q: You have been asked by Ambassador Hardware Co., a small nonpublic

You have been asked by Ambassador Hardware Co., a small nonpublic company, to submit a proposal for the audit of the company. After performing an investigation of the company, including its management...

Q: For each of the independent situations described below select the appropriate inherent

For each of the independent situations described below select the appropriate inherent risk factor described and the effect of the inherent risk factor on the company’s net income us...

Q: Schmich and Schmich, CPAs, in Minneapolis, Minnesota, has

Schmich and Schmich, CPAs, in Minneapolis, Minnesota, has completed the audit of XYM Co. for the year ended December 31, 20X1. The financial statements for this nonpublic client are prepared following...

Q: Occasionally, public accounting firms are engaged to report on specified elements

Occasionally, public accounting firms are engaged to report on specified elements, accounts, and items of financial statements. Required: a. Discuss types of reports that may be provided for a nonpub...

Q: You have been engaged by the management of Pippin, Inc.,

You have been engaged by the management of Pippin, Inc., a nonpublic company, to review the company’s financial statements for the year ended December 31, 20XX. To prepare for the engagement, you cons...

Q: In connection with a public offering of first-mortgage bonds by

In connection with a public offering of first-mortgage bonds by Guizzetti Corporation, the bond underwriter has asked Guizzetti’s CPAs to furnish it with a comfort letter giving as much assurance as p...

Q: Andrew Wilson, CPA, has assembled the financial statements of Texas

Andrew Wilson, CPA, has assembled the financial statements of Texas Mirror Co., a small nonpublic company. He has not performed an audit of the financial statements in accordance with generally accept...

Q: Other types of assurance services provided by CPAs have developed as a

Other types of assurance services provided by CPAs have developed as a natural extension of the audit function. a. Explain what is meant by the term assurance services. b. Describe the forces that hav...

Q: The nonpublic company attestation standards provide guidance for three basic types of

The nonpublic company attestation standards provide guidance for three basic types of engagements. Required: a. Describe these three types of engagements. b. Describe the types of procedures performe...

Q: Auditors often observe the counting of their clients’ inventories. You are

Auditors often observe the counting of their clients’ inventories. You are working in the area of inventory with a new assistant on the audit of Jilco Inc. The assistant has a number of questions conc...