Questions from Auditing and Assurance

Q: As part of the engagement team for the audit of JA Tire

As part of the engagement team for the audit of JA Tire Manufacturing for the year ended December 31, 2019, you are responsible for auditing the sales and collection cycle. If you have not done so alr...

Q: What are the purposes of the opinion section in the auditor’s report

What are the purposes of the opinion section in the auditor’s report? Identify the most important information included in the opinion section.

Q: What three types of authorizations are commonly used as internal controls for

What three types of authorizations are commonly used as internal controls for sales? Explain the importance of each.

Q: Describe whether the auditor is more concerned about the occurrence or completeness

Describe whether the auditor is more concerned about the occurrence or completeness objective related to cash receipts.

Q: What are the four major sources of auditors’ legal liability?

What are the four major sources of auditors’ legal liability?

Q: Explain the concept of professional skepticism and identify its two elements.

Explain the concept of professional skepticism and identify its two elements.

Q: What are the auditor’s possible defenses against lawsuits filed under the Securities

What are the auditor’s possible defenses against lawsuits filed under the Securities Exchange Act of 1934?

Q: Explain the five elements that are part of a strategic understanding of

Explain the five elements that are part of a strategic understanding of the client’s business.

Q: Explain the difference between known and likely misstatements. Assume the auditor

Explain the difference between known and likely misstatements. Assume the auditor tests a sample of $100,000 of inventory and finds misstatements totaling $5,000. What is the likely misstatement if th...

Q: What is the purpose of the Principles of Professional Conduct? Identify

What is the purpose of the Principles of Professional Conduct? Identify the six principles.