Auditing Hw Solutions

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Chapter 1 SOLUTIONS FOR EXERCISES AND PROBLEMS 1.47 Audit, Attestation, and Assurance Services Students may encounter some difficulty with this matching question because the Special Committee on Assurance Services (SCAS) listed many things that heretofore have been considered “attestation services” (long before assurance services were invented). As a result, we believe that this question is a good vehicle for discussing the considerable overlap between attestation and assurance services.               Real estate demand studies: Assurance service Ballot for awards show: Assurance service Utility rates applications: Assurance service Newspaper circulation audits: Assurance service Third-party reimbursement…show more content…
Existence. Obtain evidence that the securities are bona fide and held by Spillane or a responsible custodian. Occurrence. Obtain evidence that the loan transaction and securities purchase transactions actually took place during the year under audit. 2. Completeness. Obtain evidence that all the securities purchase transactions were recorded. 3. Rights. Obtain evidence that Spillane owned the securities. Obligation. Obtain evidence that $500,000 is the amount actually owed on the loan. 4. Valuation. Obtain evidence of the cost and market value of the securities held at December 31. Decide whether any write-downs to market are required by the appropriate reporting framework. 5. Presentation and disclosure. Obtain evidence of the committed nature of the assets, which should mean they should be in a noncurrent classification like the loan. Obtain evidence that restrictions on the use of the assets are disclosed fully and agree with the loan documents. Chapter 2 2.54 Independence a. Independence in fact relates to the auditors’ “state of mind” and reflects an unbiased and impartial perspective with respect to the financial statements and other information they audit. Independence in appearance relates to others’ (particularly financial statement users’) perceptions of the auditors’ independence. The two general types of relationships that compromise auditors’ independence are financial

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