Discuss the following for the Apple Inc. Which accounting/auditing firm audited the financial statements? Did the auditor’s report indicate any problems or exceptions.
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Discuss the following for the Apple Inc.
- Which accounting/auditing firm audited the financial statements?
- Did the auditor’s report indicate any problems or exceptions.
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- Your view of what the companies’ auditors would need to consider in the effective audit of its primary revenues. For example, what would you do to audit the revenue streams? How would you verify that they are correctly stated in the financial statements without material error? Identify no more than three audit procedures around revenue recognition for the company you selected.Which of the following is not part of audit evidence? Information gathered by the auditors from stock exchange Information contained in the accounting records Confirmation from third parties Audit firm quality control procedure for client acceptance and continuationWho is responsible for preparing financial statements of Huawei? What is the external audit report on the presentation of financial statement of Huawei? Name the different financial statements that audited by external auditors.
- Become familiar with the several kinds of reports that go along with a company's financial statements, including the normal (unmodified) audit report.+We discussed a number of assertions about account balances, classes of transactions, and disclosures contained in financial statements. These assertions include existence and occurrence, rights and obligations, completeness, cutoff, valuation and disclosure. When we gather audit evidence, we gather evidence to support financial statement assertions. Required: Describe how each of these assertions relates to Accounts Receivable. Conor & Evan, CPAs are the auditors for Mojito, Inc. In the course of the audit, Conor & Evan select a sample of Mojito’s customers from the Accounts Receivable subsidiary ledger and send letters to them asking for confirmation of the Accounts Receivable balances owed to Mojito, Inc. Describe which of the assertions will be supported by the evidence obtained from the confirmations sent to Mojito’s customers. Explain how the evidence supports the assertion and, if it does not support the assertion, why nota) What are key audit matters? How do these affect the format of the audit report? b) Stewart Jones is reviewing the results of the subsequent events audit procedures. Stewart is writing a report for his audit partner based on these results and will be attending a meeting tomorrow with the partner and representatives of the company to discuss them. The issue will be whether the financial report should be amended, or additional notes included for these subsequent events.Many of the items are not material and Stewart will recommend that no action be taken with respect to these. However, there are several items that Stewart believes are material and should be discussed at the meeting. These are as follows.(i) The board is planning to issue shares in a private placement on 15 August. (ii) The share issue is to fund the purchase of a 60 per cent stake in another company. The negotiations are in the final stages and although the contract is not yet signed it will be signedby 15 August.(iii)…
- The PCAOB issues audit practice alerts to highlight new, emerging, or otherwise noteworthy circumstances. Revenue is the largest account in the financial statements for many companies, and many fraudulent financial reporting cases have involved the intentional overstatement of revenue. For these reasons, the audit of revenue is often a significant focus of PCAOB inspections. PCAOB Audit Staff Practice Alert No. 12, Matters Related to Auditing Revenue in an Audit of Financial Statements, provides guidance to auditors and also highlights several deficiencies in the audit of revenue as identified through inspections. Download the practice alert at www.pcaobus.org to answer the following questions: What are the deficiencies identified by the PCAOB related to the use of substantive analytical procedures in testing revenue? What sources of information does the PCAOB recommend auditors use to develop plausible expectations of revenue when performing substantive analytical procedures? What…(a) What are the key audit matters? How do these affect the format of the audit report? b) Stewart Jones is reviewing the results of the subsequent events audit procedures. Stewart iswriting a report for his audit partner based on these results and will be attending a meetingtomorrow with the partner and representatives of the company to discuss them. The issue will bewhether the financial report should be amended, or additional notes included for thesesubsequent events.Many of the items are not material and Stewart will recommend that no action be taken withrespect to these. However, there are several items that Stewart believes are material and shouldbe discussed at the meeting. These are as follows.(a) The board is planning to issue shares in a private placement on 15 August. (b) The share issue is to fund the purchase of a 60 percent stake in another company. Thenegotiations are in the final stages and although the contract is not yet signed it will be signedby 15 August. (c) A…You are an audit manager at Hall & Associates, who have been approached to conduct the audit of Computer Games Ltd (CGL), a manufacturer of interactive computer games, for the year ended 30 June 2013.Hall & Associates has not previously audited CGL’s financial report, although it has undertaken other types of engagements for CGL. Last year CGL hired Hall & Associates to assist in the redesign of CGL’s accounting software to ensure that internal controls over internet sales were adequate to ensure the confidentiality of customer data and accuracy of recording. The new software was implemented at the beginning of the current year and appears to be working satisfactorily. As part of this year’s audit, you expect to review the internal controls at CGL, including the controls within the IT systems.As part of CGL’s financing arrangements with its bank, Easymoney Ltd, it has a loan covenant that stipulates that the quick asset ratio cannot be less than 1:1 or Easymoney Ltd has the…
- You are an audit manager at Hall & Associates, who have been approached to conduct the audit of Computer Games Ltd (CGL), a manufacturer of interactive computer games, for the year ended 30 June 2013.Hall & Associates has not previously audited CGL’s financial report, although it has undertaken other types of engagements for CGL. Last year CGL hired Hall & Associates to assist in the redesign of CGL’s accounting software to ensure that internal controls over internet sales were adequate to ensure the confidentiality of customer data and accuracy of recording. The new software was implemented at the beginning of the current year and appears to be working satisfactorily. As part of this year’s audit, you expect to review the internal controls at CGL, including the controls within the IT systems.As part of CGL’s financing arrangements with its bank, Easymoney Ltd, it has a loan covenant that stipulates that the quick asset ratio cannot be less than 1:1 or Easymoney Ltd has the…You are an audit manager at Hall & Associates, who have been approached to conduct the audit of Computer Games Ltd (CGL), a manufacturer of interactive computer games, for the year ended 30 June 2013. Hall & Associates has not previously audited CGL’s financial report, although it has undertaken other types of engagements for CGL. Last year CGL hired Hall & Associates to assist in the redesign of CGL’s accounting software to ensure that internal controls over internet sales were adequate to ensure the confidentiality of customer data and accuracy of recording. The new software was implemented at the beginning of the current year and appears to be working satisfactorily. As part of this year’s audit, you expect to review the internal controls at CGL, including the controls within the IT systems. As part of CGL’s financing arrangements with its bank, Easymoney Ltd, it has a loan covenant that stipulates that the quick asset ratio cannot be less than 1:1 or Easymoney Ltd has…Consider the following statements: I. For an audit of a non-public company a issue involving information in the “Management Discussion and Analysis section of the company’s annual report would be addressed in an Other Matter paragraph. II. The new PCAOB audit report includes a section involving Key Audit Matters. I is true; II is true I is true; II is false I is false; II is true I is false; II is false