What is the retention period of audit Document as per ISA 230? Six years from the date of the auditor's report Five years from the date of the auditor's document prepared. Five years from the date of the auditor's report
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- 46-Which paragraph of the audit report contains that the entity continues to carry on its operations in the foreseeable period of twelve months. O a. Going concern basis of accounting O b. Introductory paragraph O c. Other legal and regulatory requirements O d. Key Audit matters60 days after the date of the auditor's report is ordinarily an appropriate time limit within which to complete the assembly of the final audit file. True FalseAn annual report Must be audited by the IRS. Is delivered to stockholders and the public on the last day of the fiscal year. Includes comparative financial statements for several years. Must be filed with the SEC by all companies in the United States.
- Mazars Audit Firm is re-appointed as auditors in Beautiful Jewels for a year ended 31st March 2020. The overall level of acceptable audit risk of the client is considered as 10%. The inherent risk and control risk are assessed at 50% and 80% respectively. (i)Explain the meaning of 10% level of Audit Risk.According to the PCAOB Auditing Standard 3 on audit documentation, the complete audit documentation must be assembled 45 days after the report release date. What does this standard say about whether documentation can be added or deleted after the documentation completion date or whether documentation can be added after the document completion date?You are the auditor in charge of the audit of Irene PLC, which has a 30 June year end. The subsequent events review for the year ended 30 June 2022 revealed that, on 1 August 2022, a receiver was appointed at a major customer. At 30 June 2022 that customer owed GHS 150,000 and goods costing GHS 200,000 made to that customer’s specification were held in inventory. Both these amounts are material.RequiredList the matters to which you would direct your attention in respect of the above in relation to the audit for the year ended 30 June 2022, if the audit report on the financial statements has not yet been written.
- Ann Johnson has audited the financial report of Quick Ltd for the year ended 30 June 2020. Although Ann’s audit fieldwork was completed on 14 August 2020, her auditor’s report was signed on 20 August 2020 and sent to management that day. The management of Quick Ltd advised Ann that their annual report, which will be mailed to shareholders on 10 October 2020, will also include an unaudited financial report for the first quarter ended 30 September 2020. Under the circumstances, Ann is responsible for undertaking subsequent events audit procedures through to:Select one:a. 10 October 2020b. 20 August 2020c. 14 August 2020d. 30 September 2020an entity has an existing note maturing within 12 months from the balance sheet date. The entity has the right to refinance the obligation for 15 months from the report date the obligation should be accounted for as A. Accounted for as a current liability when refinancing was done after the report date and after the issuance of the financial statement, with a corresponding disclosure in the notes regarding the refinancingB. Accounted for as a current liability when refinancing was done on or before the reporting date.C. Accounted for as a current liability when refinancing was done after the report date but before the issuance of the financial statement. D. Accounted for as a noncurrent liability when refinancing was done on or before the maturity dateAs the senior auditor assigned to the audit of Mayberry Company’s financial statement for the year-ended 31 December 2020. You are reviewing the financial statements and observed that current revenue reported amounted to US$ 18m and US$ 17m for the previous year. The financial report contains the following sections: Chairman’s statement in which the chairman has commented that he is pleased to report an increase in revenue of 20% this year. ii. CEO’s review Corporate Social Responsibility Report iv. Operating review Financial Statements vi. Notes to the Financial Statements Required: What is the significance of the Chairman’s statement in the financial statements? Identify the sections that would be included in ‘other information’ in the auditor’s report. Describe the implications(s) of the section ‘other information’ in the auditor’s report as it relates to Mayberry Company. Why should the auditor refer to the Chairman’s statement in the auditor’s…
- 17-36 Roscoe & Jones, Ltd., a CPA firm in Silver Bell, Arizona, has completed the audit of the financial statements of Excelsior Corporation as of, and for, the year ended December 31, 20XI Findings related to the financial statements and the audit include Although Excelsior has been in existence for a number of years and been audited for the past seven years by Roscoe & Jones, it is presenting only current-year financial statements Roscoe was unable to perform normal accounts receivable confirmation procedures, but alternate procedures were used to satisfy Roscoe as to the validity of the receivables Excelsior Corporation is the defendant in litigation, the outcome of which is highly uncertain. If the case is settled in favor of the plaintiff, Excelsior will be required to pay a substantial amount of cash that might require the sale of certain assets. The litigation and the possible effects have been properly disclosed in Note 11 Roscoe wishes to include discussion of this…Which of the following procedures would an auditor most likely perform to obtain evidence about the occurrence of subsequent events? A. confirming a sample of material accounts receiveable established after year-end. B. Comparing the financial statements being reported on with those of the prior period. C. Investigating personnel changes in the accounting department occurring after year-end. D. Inquiring as to whether any unusual adjustments were made after year-end.Mazars Audit Firm is re-appointed as auditors in Beautiful Jewels for a year ended 31st March 2020. The overall level of acceptable audit risk of the client is considered as 10%. The inherent risk and control risk are assessed at 50% and 80% respectively. (i)Calculate the detection risk, if the audit risk falls down to 5% .