A company’s management believes that substantial doubt exists that the company can meet its financial obligations as they come due for a one-year period of time from the issuance of its financial statements. What possible disclosures are required?

Q: Choose the correct. A company’s management has uncovered events that indicate that substantial doubt…

A: Financial statements: Financial statements are condensed summary of transactions communicated in the…

Q: If a client fails to present to the external auditor a concrete plan or sufficient supporting…

A: The correct option is: Option B (S2 and S3 are true)

Q: If a company registered with the SEC justifies a change in accounting method as preferable under the…

A: Securities Exchange Commission (SEC): This is the government agency governs the working of financial…

Q: Determine the following as a result of your audit: 1. How much is the correct balance of accounts…

A: Here discuss about the details of adjustment made in the balance of accounts payable and profit…

Q: ow should the notice of resignation of the auditors to be sent?

A: by company to regulatory authority

Q: The financial statements of a company are closed on 31st December, 2020 and auditor has completed…

A: Audit documentation is the record of audit procedures performed on the financial statements and…

Q: If the management's assessment to evaluate going concern basis of accounting covers less than twelve…

A: Going Concern concept states that the business is expected to carry on its routine activities for…

Q: When it is difficult to distinguish between a change of estimate and a change in accounting policy,…

A: Answer : (a) Treat the entire change as a change in  estimate with appropriate  disclosure.

Q: auditors’ judgement that the loan receivable is impaired and should be written down.  Management of…

A: Subsequent events are those significant events which occurs after the reporting period and requires…

Q: The accounting and auditing literature discusses several different types of accounting changes. For…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Dell recorded the exclusivity payments as an offset or reduction to its operating expenses. What…

A: Management assertions: The implicit or explicit assertions of the person in charge of compiling the…

Q: The accountant's report that expresses an opinion on an entity's internal controls would not include…

A: The auditor's report on the audit of internal control over financial reporting includes the…

Q: Select the statement that is not correct regarding financial statement misstatements that require…

A: SOLUTION- MISSTATEMENT IN FINANCIAL STATEMENTS- A STATEMENT IS THE DIFFERENCE BETWEEN THE REQUIRED…

Q: Determine the following as a result of your audit: 1. How much is the correct carrying value of the…

A: Financial liabilities that are held for trading are measured at Fair Value through Profit and Loss.…

Q: There is typically a two- to three-month delay between the end of the reporting period and the date…

A: Relevance refers to how helpful the information is for financial decision-making processes. Lack of…

Q: What type of disclosure or accounting do you believe is necessary for the following items? Because…

A: 1. The increased likelihood of a company depicted to suffer losses due to strike in near future are…

Q: Identify and briefly discuss the inherent limitations of an audit of the set of annual financial…

A: Inherit Limitation to audit are limitation of audit which doesn't allow the auditor to obtain…

Q: Statement 1: The date of the issuance of the financial statements shall be before the date of the…

A: Answer: Given statements as: Statement 1: The date of the issuance of the financial statements shall…

Q: During a review of a nonissuer’s financial statements, accountants are required to make…

A:

Q: There is a presumption that anyone reading interim financial reports shall A. Understand all IFRS…

A: Solution:- Introduction:- An interim financial report is a financial report.Generally it is prepared…

Q: e ‘true and fair view’ concept is one of two competing but not mutually exclusive legal or…

A: True and fair view in auditing means the financial statements are free from material misstatements…

Q: For the purpose of classifying assets and liabilities as current and non-current, and the normal…

A: Introduction:- For the purpose of classifying assets and liabilities as current and non-current, and…

Q: 3. A violation of the code of ethics would most likely have occurred when a CPA a. Issued an…

A: I am answering the first question as per bartleby guidelines. Please re-submit the remaining…

Q: Part A In an article published in The Australian on 4 May 2021, it was noted that the company named…

A: Solution Concept Going concern                 Going concern is the fundamental assumption used in…

Q: ming procedures to discover subsequent events usually ends:

A: The right answer is option c. On the date, the financial report is issued to shareholders.

Q: 3. Identify and briefly discuss the inherent limitations of an audit of the set of annual financial…

A: audit of financial statements -   An audit is an independent examination of financial information of…

Q: For Questions 21 through 30, assume that you are reporting on an audit of a client’s financial…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: The accounting and auditing literature discusses several different types of accounting changes. For…

A: Given the following circumstances under which the auditor needs to add a paragraph to the audit…

Q: You are the auditor of TCG Ltd. On 5 September 2019, you were told that the Australian Securities…

A: Answer: Annual balance date = 30 June 2019 Completion of audit = 18 August 2019 Signing of audit…

Q: What type of opinion is issued by the auditorr if he or she is unable to determine the overall…

A: Introduction: Auditing is the process of verifying, validating, and investigating all financial…

Q: On resignation of the Auditor , the statement of circumstances should be sent by i) Company to…

A: Auditor is the designated professional who is responsible for verifying and examining the accuracy…

Q: Financial accounting reports refer to the basic financial statements. They are prepared per period…

A: The financial statements provide detailed financial information about the assets, obligations,…

Q: hich required SEC filing would contain the following content?    "Our auditors identified the…

A: Correct option is b) 10-K Form 10-K is an annual report that provides a comprehensive analysis of…

Q: Which of the following financial statements would be improperly prepared as part of the annual 10K…

A: Annual reports are those reports which are and have to be prepared by the company in order to comply…

Q: Which of the following must be done If a resolution has been passed to remove the auditor ? i.…

A: the role of an auditor is to review the annual or the current financial statements of the company…

Q: Directions: Please select the appropriate answer on the statement below; B - If the statement is…

A: First Reporting Standard is International Accounting Standards (IAS 1): Presentation of Financial…

Q: In an article published in The Australian on 4 May 2021, it was noted that the company named as the…

A: solution concept The managements assertion about the going concern has to be looked upon by the…

Q: The SEC requires registrants to have their quarterly financial statements reviewed by an independent…

A: Form 10-Q is a quarterly performance report summited by all the public companies to the SEC.

Q: Going Concern

A: Which of the following statements is (are) true, concerning the Going Concern assumption?   Correct…

Q: Boeing’s top management maintains that it did not have an obligation to reveal its problems during…

A: The implications that may have for investors and analysts who follow the information revealed by the…

Q: Assume that you will be unable to inspect the securities owned by the client on the balance sheet…

A: The audit and inspection are good tool that are used by auditor. An inspection is different than…

Audit Procedures

Audit Procedures are methods and techniques performed by the auditor to determine the quality of financial information of clients, thereby expressing an opinion on true & fair view of financial statements and entity position. They are identified and applied at the planning stage of audit after determining audit objectives, scope, approach, and risk assessment.