Auditing And Assurance Services
Auditing And Assurance Services
17th Edition
ISBN: 9780134897431
Author: ARENS, Alvin A.
Publisher: PEARSON
Question
Book Icon
Chapter 24, Problem 29DQP

a.

To determine

Differentiate between basic financial statements and additional information.

b.

To determine

Understand the purposes of additional information accompanying basic financial statements.

c.

To determine

State the appropriate contents for additional information.

Blurred answer
Students have asked these similar questions
The PCAOB issues audit practice alerts to highlight new, emerging, or otherwise noteworthy circumstances. Revenue is the largest account in the financial statements for many companies, and many fraudulent financial reporting cases have involved the intentional overstatement of revenue. For these reasons, the audit of revenue is often a significant focus of PCAOB inspections. PCAOB Audit Staff Practice Alert No. 12, Matters Related to Auditing Revenue in an Audit of Financial Statements, provides guidance to auditors and also highlights several deficiencies in the audit of revenue as identified through inspections. Download the practice alert at www.pcaobus.org to answer the following questions:   What are the deficiencies identified by the PCAOB related to the use of substantive analytical procedures in testing revenue? What sources of information does the PCAOB recommend auditors use to develop plausible expectations of revenue when performing substantive analytical procedures? What…
Written representations are an important source of evidence to the auditor. Normally during the course ofan audit, management make oral representations to auditors on many matters. To reduce the possibility ofmisunderstanding, auditors may require such information to be confirmed in writing.The Audit Manager asked the CEO of the audit client to confirm via the Management Representation Letter thatthe debt owed by one of their major customers, namely Ironman Ltd, was collectible. The CEO confirmed that thedebt was collectible and included such in the Management Representation Letter.It was subsequently revealed via discussions with the Accountant of the audit client that a letter was receivedfrom Ironman Ltd a few weeks ago which indicated that they were in liquidation and could not honor their debt.The letter was given to the CEO who took the letter and advised the Accountant that he would handle it. The CEOsaid that he lost the letter when questioned about same by the Audit Manager.…
For Questions 21 through 30, assume that you are reporting on an audit of a client’s financial statements.  Select the type(s) of opinion appropriate for the scenario.  In addition, unless stated otherwise, assume the matter involved is material.  If the problem does not tell you whether a misstatement pervasively misstates the financial statements or does not list a characteristic that indicates pervasiveness, two reports may be possible.   A company has not followed generally accepted accounting principles in the recording of its leases.   Question 21 options:   Qualified   Adverse   Disclaimer   Qualified or adverse         A client changed its depreciation method for production equipment from the straight-line method to the units-of-production method based on hours of utilization.  The auditor concurs with the change.   Question 22 options:   Unmodified – standard   Unmodified with…
Knowledge Booster
Background pattern image
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
Auditing: A Risk Based-Approach (MindTap Course L...
Accounting
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Cengage Learning
Text book image
Contemporary Auditing
Accounting
ISBN:9781337650380
Author:KNAPP
Publisher:Cengage
Text book image
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College
Text book image
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning
Text book image
Auditing: A Risk Based-Approach to Conducting a Q...
Accounting
ISBN:9781305080577
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:South-Western College Pub