Questions from General Auditing

Q: In the early 2000s, several large corporations such as Enron,

In the early 2000s, several large corporations such as Enron, WorldCom, and Nortel collapsed because of corporate greed, bad business practices, and accounting irregularities. Others, such as Bristol-...

Q: A generally accepted definition of earnings management is the planned timing of

A generally accepted definition of earnings management is the planned timing of revenues, expenses, gains, and losses to smooth out earnings over a number of accounting periods. Generally speaking, ear...

Q: Consider the following statement: The audit of inventory is one

Consider the following statement: The audit of inventory is one of the riskiest areas of the audit. Management can manipulate the value of inventory through a variety of methods, such as through varyi...

Q: The audit of short-term investments can be a high-

The audit of short-term investments can be a high-risk area for auditors. A case in Australia (AWA Ltd v. Daniels t/a Deloitte Haskins & Sells & Ors (1992) 10 ACLC 933) found the auditors negligent fo...

Q: The global financial crisis led to increasing legal action against auditors as

The global financial crisis led to increasing legal action against auditors as company managers searched for scapegoats and potential places to recover their losses. The tough economic times also likel...

Q: Compare the financial statement users and their needs for a large listed

Compare the financial statement users and their needs for a large listed public company with those of a sports team (for example, a football team).

Q: What are the limitations of an audit?

What are the limitations of an audit?

Q: Identify and discuss any professional conduct issues in the following independent scenarios

Identify and discuss any professional conduct issues in the following independent scenarios. a. Adnan Hussein is a CPA working for a national firm. He is at his desk when he overhears his colleague Jo...

Q: Who would request a performance audit? Why?

Who would request a performance audit? Why?

Q: Are internal auditors independent? Which internal auditor would be more independent

Are internal auditors independent? Which internal auditor would be more independent: an internal auditor who reports to the chief financial officer (CFO) of the company, or an internal auditor who rep...