Auditing Hmwk #1

1376 Words6 Pages
Arayawna Moore
Auditing I


A. 3
B. 2
C. 2
D. 3

A. 2
B. 3
C. 4
D. 3

1) IRS, compliance audit
2) GAO, operational audit
3) CPA, operational audit
4) Internal, financial statement audit
5) GAO, operational audit
6) CPA, financial statement audit
7) GAO, financial statement audit
8) IRS, compliance audit
9) Internal, financial statement audit
10) IRS, compliance audit
11) Internal, financial statement audit
12) GAO, compliance audit

A. The conglomerate should engage to conduct the operational audit with a CPA.
B. Major problems auditors likely encounter in conducting the investigation and writing the report is determining if the effectiveness and efficiency
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1) Not in accordance with GAAP because they didn’t disclose loss in footnotes, highly material, Adverse.
2) GAAP is not being followed, immaterial, Unqualified standard wording.
3) Scope limitation, material, Qualified scope and opinion.
4) Scope limitation, highly material, Disclaimer.
5) Unqualified standard wording, he was satisfied with limited scope by using alternate auditing procedures; by using those procedures the scope is not limited anymore.
6) GAAP not followed, material, Qualified opinion only.
7) Change in estimate, Unqualified standard wording.


A. 4
B. 2
C. 2
D. 4

A. 3
B. 1

A. 1
B. 1
C. 2

When the CPA’s associate their name with compiled financial statements, their only responsibility is to the client and that is limited to the proper summarization and presentation on the financial statements of information provided by the client. We have not audited or reviewed the accompanying financial statements and, accordingly, do not express an opinion or any other form of assurance on them. If the CPA expects the outside users to rely on the statements they must give a compilation report. The CPA cannot be held accountable by outside users because the statement does not give assurance about those statements. A compilation is limited to financial

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