Questions from Auditing and Assurance

Q: The client changed from FIFO to LIFO inventory valuation in the current

The client changed from FIFO to LIFO inventory valuation in the current year and reflected this change in their financial statements. How should this be reflected in the auditor’s report?

Q: Why is it important that an auditor develop an expectation of the

Why is it important that an auditor develop an expectation of the account balance when performing substantive analytical procedures about the reasonableness of an account balance? What are the audit d...

Q: Identify and explain factors that should keep the quality of audits high

Identify and explain factors that should keep the quality of audits high even though advertising and competitive bidding are allowed.

Q: Describe how the use of audit data analytics might increase both the

Describe how the use of audit data analytics might increase both the effectiveness and efficiency of the audit.

Q: List the four major evidence decisions that must be made on every

List the four major evidence decisions that must be made on every audit.

Q: Provide two examples of when an auditor might set a lower level

Provide two examples of when an auditor might set a lower level of performance materiality for a particular class of transactions, account balance, or disclosure.

Q: The Responsibilities principle requires that auditors be responsible for having appropriate competence

The Responsibilities principle requires that auditors be responsible for having appropriate competence and capabilities to perform the audit. What are the various ways in which auditors can fulfill th...

Q: Describe what is meant by an audit procedure. Why is it

Describe what is meant by an audit procedure. Why is it important for audit procedures to be carefully worded?

Q: Describe some of the reasons why there have been calls for mandatory

Describe some of the reasons why there have been calls for mandatory rotation of audit firms. How could an investor of a public company determine how long an audit firm has served as that company’s au...

Q: Who is considered the client when auditing public companies?

Who is considered the client when auditing public companies?