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Questions And Research Question Questions

Decent Essays
Discussion and Research Question 15-48

Who Signs Who Receives Required/Optional When Sent Purpose
a) Client 's Lawyers Auditor Required By the completion of the audit Obtain corroborative verification relating to contingent liabilities
b) CEO & CFO Auditor Required By the completion of the audit Remind management regarding reporting responsibilities and get written responses to prior inquiries
c) Auditor Client Optional After audit Provide management with productive suggestions on way to develop their organization.

Discussion and Research Question 15-50

1. The estimated loss of $30,000 was accrued in the 2011 financial statements but the actual loss is recognized as $50,000. The financial statements should be adjusted and disclosed to reflect the total loss of $50,000.
2. The event should be disclosed because the accident happened after the balance sheet date.

3. The auditor should decide what incurred the loss. Was the auditor 's decision adverse of court decision as event occurred after the date of the balance sheet or the product sold and lawsuit filed previous to year-end? The condition did present at the balance sheet. It would probably be decided by the auditors because the product sale and lawsuit filing occurred before the balance sheet date. The loss reserve loan has to be adjusted to compensate for this loss.

4. The estimated cost of the purchase requires to be adjusted without any disclosure.

5. On February 2, 2012, the board of directors took the
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