EBK AUDITING+ASSURANCE SERVICES
17th Edition
ISBN: 9780135171219
Author: ARENS
Publisher: PEARSON CO
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Textbook Question
Chapter 19, Problem 26DQP
You are auditing the financial statements of Austin Software Company, which is a fast-growing software development company. As part of the company’s strategy, management has been aggressively pursuing acquisitions of other companies. Some of the prior acquisitions resulted in the recording of
As part of your audit, consider each of the following:
- a. What are the underlying accounting standards requirements that are relevant to your evaluation of the company’s charge for the impairment of goodwill?
- b. What types of evidence would be relevant to your evaluation of whether management’s impairment charge is fairly stated?
- c. How might the use of a business valuation specialist be helpful in this year’s audit?
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You are auditing the financial statements of Austin SoftwareCompany, which is a fast-growing software development company. As part of the company’sstrategy, management has been aggressively pursuing acquisitions of other companies.Some of the prior acquisitions resulted in the recording of goodwill. During your reviewof income and expense accounts, you noted a material goodwill impairment chargeassociated with the company’s acquisition of Longhorn Software, Inc.As part of your audit, consider each of the following:a. What are the underlying accounting standards requirements that are relevant toyour evaluation of the company’s charge for the impairment of goodwill?b. What types of evidence would be relevant to your evaluation of whether management’s impairment charge is fairly stated?c. How might the use of a business valuation specialist be helpful in this year’s audit?
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Chapter 19 Solutions
EBK AUDITING+ASSURANCE SERVICES
Ch. 19 - Identify three asset accounts, three expense...Ch. 19 - Explain the relationship between substantive tests...Ch. 19 - Prob. 3RQCh. 19 - Prob. 4RQCh. 19 - Prob. 5RQCh. 19 - Prob. 6RQCh. 19 - Prob. 7RQCh. 19 - Prob. 8RQCh. 19 - Prob. 9RQCh. 19 - Prob. 10RQ
Ch. 19 - Which documents will be used to verify accrued...Ch. 19 - Prob. 12RQCh. 19 - Prob. 13RQCh. 19 - Prob. 14RQCh. 19 - Prob. 15.1MCQCh. 19 - Prob. 15.2MCQCh. 19 - Prob. 15.3MCQCh. 19 - Prob. 16.1MCQCh. 19 - Prob. 16.2MCQCh. 19 - Prob. 16.3MCQCh. 19 - Prob. 17.1MCQCh. 19 - Prob. 17.2MCQCh. 19 - Prob. 17.3MCQCh. 19 - Prob. 18.1MCQCh. 19 - Prob. 18.2MCQCh. 19 - Prob. 18.3MCQCh. 19 - Prob. 19DQPCh. 19 - Prob. 20DQPCh. 19 - Prob. 21DQPCh. 19 - Prob. 22DQPCh. 19 - Prob. 24DQPCh. 19 - Prob. 25DQPCh. 19 - You are auditing the financial statements of...Ch. 19 - Prob. 27DQPCh. 19 - Prob. 28DQPCh. 19 - Prob. 29DQP
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