Questions from Auditing and Assurance

Q: Carson Inc. is a private company that manufactures heavy machinery.

Carson Inc. is a private company that manufactures heavy machinery. The company has an active audit committee and board of directors. The audit committee consists of two outside directors and Howard K...

Q: Assume that you are auditing the financial statements of Young Manufacturing Co

Assume that you are auditing the financial statements of Young Manufacturing Co. Management of Young has designed a review control for cash disbursements using data analytics. The company’s software e...

Q: Metropolitan Corporation has a significant investment in a closely-held corporation

Metropolitan Corporation has a significant investment in a closely-held corporation, Wake Forest Company. Metropolitan’s investment does not enable the company to exercise significant influence over...

Q: Use the Code of Professional Conduct (available at pub.aicpa

Use the Code of Professional Conduct (available at pub.aicpa.org/code of conduct) to research each of the circumstances presented in Problem 3-41 and address whether Bell & Greer’s independence is imp...

Q: In the audit of Wheat Inc. for the year ended December

In the audit of Wheat Inc. for the year ended December 31, you discover that the client had been drawing checks as creditors’ invoices became due but had not been mailing the checks immediately. Becau...

Q: The CPA firm Hank and Henry LLP is performing its first integrated

The CPA firm Hank and Henry LLP is performing its first integrated audit of their recently acquired public client Wigly Corporation. Wigly has been in existence for 10 years. Wigly Corporation has two...

Q: Bill Jones is a partner with Adel son & Co., a

Bill Jones is a partner with Adel son & Co., a one office CPA firm located in Tucson, Arizona. He is the engagement partner on the audit team of NRG, LTD, a public company and he has just discovered...

Q: Gordon & Moore, CPAs, were the auditors of Fox &

Gordon & Moore, CPAs, were the auditors of Fox & Company, a brokerage firm. Gordon & Moore examined and reported on the financial statements of Fox, which were filed with the Securities and Exchange...

Q: Auditors assess the risks of material misstatement and then design further audit

Auditors assess the risks of material misstatement and then design further audit procedures. a. Describe the auditors’ approach to identifying and assessing the risks of material misstatement. b. Desc...

Q: You are the partner on the audit of Data save Inc.,

You are the partner on the audit of Data save Inc., a small publicly held corporation that manufactures high-speed disk drives for the computer industry. The audit of Data save had been progressing sa...