Connect Access Card for Principles of Auditing & Other Assurance Services
Connect Access Card for Principles of Auditing & Other Assurance Services
21st Edition
ISBN: 9781260299366
Author: Ray Whittington, Kurt Pany
Publisher: McGraw-Hill Education
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Chapter 17, Problem 34P
To determine

Identify the deviation from the public company standard report.

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It is 1 July 20X5. You are an audit manager in Welford & Co, a firm of Chartered Certified Accountants. Your role includes performing post-issuance audit quality reviews, and you have been asked to review the audit work performed on Rivers Co for the financial year ended 31 January 20X5. You have gathered the following information from your review of the audit file: Audit team and feesRivers Co is a listed company operating in the construction industry. The company complies with corporate governance regulations and has an audit committee. Rivers Co has been an audit client of Welford & Co for eight years, and Bob Newbold has been the audit engagement partner during this time. Rivers Co’s auditor’s report was signed by Bob Newbold and issued last week. The report contained an unmodified opinion. Welford & Co requires its staff to record each hour they spend working on each client in the firm’s time management system. From reviewing the time records relating to the audit of…
On March 5, 2018, ZELDA CORP completed the draft audited financial report for the financial year 2017. The draft financial report was reviewed by the board of directors on March 10, 2018 and discussed with the external auditor on March 12, 2018. The independent auditor's report was published on March 14, 2018. On March 15, 2018, the audited financial statements were authorized to be published by the board of directors. On March 17, 2018, ZELDA CORP announced its financial performance in electronic media. Meanwhile, the audited financial report will be available for shareholders on March 19, 2018. Requested: Specify a period of time included in the event after the reporting period.
As a part of his audit of the financial statements of Marlborough Corporation for the year ended March 31, 199X, Mark Wayne, CIA is reviewing the balance sheet presentation of a $1,200,000 advance to Franklin Olds. Marlborough’s president. The advance, which represents 50 percent of current assets and 10 percent of total assets, was made during the year ended March 31, 199X. it has been described in the balance sheet as “miscellaneous accounts receivable” and classified as a current assets.             Olds informs the CIA that he has used the proceeds of the advance to purchase 35,000 shares of Marlborough’s common stock, in order to forestall a takeover raid on the company. He is reluctant to have his association with the advance described in the financial statements because he does not have voting control and fears that this will “just give the raiders ammunition.”          Olds offers the following four-point program as an alternative to further disclosure” (1)          Have the…
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