1. Distinguish among engagements to prepare, compile, and review financial statements. What is the level of assurance for each? 2. What procedures should the auditor use to obtain the information necessary to give the level of assurance required of reviews of financial statements?
The following questions concern information accompanying basic financial statements. Choose the best response. a. The Form 10-K filed by management of a public company includes a section on management’s discussion and analysis (MD&A) in addition to the annual financial statements. Which of the following best describes the auditor’s responsibility for the MD&A information? (1) The […]
CellFree – Background You are the founder of CellFree, a cellphone battery and charging unit that allows cellphones to charge wirelessly. CellFree has been in operation for 2 years. For the first year and a half you were able to self- fund your company with $50,000 which you had saved from working at your previous […]
McNeil Company, a medium-sized manufacturer of microwave ovens, has been an audit client for the past five years. McNeil Co. has been steadily growing and recently hired a new CEO, who has decided to increase the level of investments in financial instruments as a way of generating a profit from excess cash from operations. The […]
The following are misstatements that might be found in the client’s year-end cash balance : 1. A check was omitted from the outstanding check list on the June 30 bank reconcilia- tion. It cleared the bank July 7. 2. Cash receipts collected on accounts receivable from July 1 to July 5 were included as June […]
The following questions concern auditing year-end cash and financial instruments. Choose the best response. a. Which of the following controls would most likely detect a kiting scheme? (1) Preparing a bank reconciliation (2) Using a lockbox system for customer receipts (3) Comparing the details of deposit tickets and recorded remittance advices (4) Preparing a bank […]
AUDIT OF FINANCIAL INSTRUMENTS ACCOUNTS Design and perform audit tests of financial instruments accounts.
TYPES OF CASH AND FINANCIAL INSTRUMENTS ACCOUNTS Identify the major types of cash and financial instruments accounts maintained by business entities.
AUDIT OF CASH AND FINANCIAL INSTRUMENTS Identify the major types of cash and financial instruments accounts maintained bybusiness entities.Show the relationship of cash in the bank to the various transaction cycles.Design and perform audit tests of the general cash account.Recognize when to extend audit tests of the general cash account to test further for material […]
The amount of subjectivity involved in establishing fair value estimates can be complex for management responsible for making the fair value measurements and disclosures contained in financial statements. This is particularly true for fair value measurements for which observable market prices are not available. Auditing standards require auditors to obtain sufficient appropriate audit evidence to […]
