Questions from Auditing and Assurance

Q: Explain the difference between probabilistic and non-probabilistic sample selection.

Explain the difference between probabilistic and non-probabilistic sample selection.

Q: List the factors that should affect the auditor’s decision whether to analyze

List the factors that should affect the auditor’s decision whether to analyze an account balance.

Q: Explain the purpose of an attestation engagement and provide an example of

Explain the purpose of an attestation engagement and provide an example of an assertion a CPA could attest to.

Q: Explain why asset impairments are difficult to identify and audit. How

Explain why asset impairments are difficult to identify and audit. How might a client or auditor use a valuation specialist in determining the fair value of property and equipment?

Q: Describe factors the auditor should consider in developing an expectation for depreciation

Describe factors the auditor should consider in developing an expectation for depreciation while performing a substantive analytical procedure for depreciation expense.

Q: What is the importance of cash discounts to the client and how

What is the importance of cash discounts to the client and how can the auditor verify whether they are being taken in accordance with company policy?

Q: Identify three asset accounts, three expense accounts, and three liability

Identify three asset accounts, three expense accounts, and three liability accounts typically associated with acquisition and payment cycle transactions.

Q: Included in the December 31, 2019, inventory of the Wholeridge

Included in the December 31, 2019, inventory of the Wholeridge Supply Company are 2,600 deluxe ring binders in the amount of $5,902. An examination of the most recent acquisitions of binders showed th...

Q: Why do CPA firms sometimes use a combination of positive and negative

Why do CPA firms sometimes use a combination of positive and negative confirmations on the same audit?

Q: Explain how unacceptable results from tests of controls and substantive tests of

Explain how unacceptable results from tests of controls and substantive tests of transactions might impact the auditor’s planned reliance on tests of details of balances.