EBK AUDITING AND ASSURANCE SERVICES
16th Edition
ISBN: 9780134067117
Author: Hogan
Publisher: VST
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Question
Chapter 24, Problem 11RQ
To determine
Identify whether the given case is related with the subsequent events or subsequent discover of facts. Also, explain the responsibility of an auditor related with the audit opinion and the opinion on internal controls.
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Five months after issuing an unqualified audit opinionand an unqualified opinion on internal controls for the audit of the year ended December31, 2013, for a large publicly traded client, the client and the auditor become aware of amaterial misstatement in sales revenue for the year in question, which was the resultof a material weakness in internal controls. Is this a subsequent event or a subsequentdiscovery of facts? What are the auditor’s responsibilities related to the audit opinion andthe opinion on internal controls?
You were first appointed auditor of the RST Corporation in 2020. You completed the audit for 2020 and prepared audited financial statements directly from the audit working papers. You have returned to make the 2021 audit and discovered that the client's bookkeeper failed to record the adjusting entries you made in 2020 audit working papers, which entailed adjustments for the following items
The December 31, 2020 inventory was understated by P5,000.
No entry was made for accrued utilities expense of P2,500 as of year-end.
Ordinary motor repairs of P3,200 were charged to Accumulated Depreciation during 2020.
The company failed to record the provision for uncollectible accounts in the amount of P6,000.
Your examination of the 2021 entries in the accounts uncovered the following:
An expenditure of P10,000 for repairs of office equipment had been charged to furniture and Equipment. The company records depreciation at 10% of the December 31 balance of the Property and Equipment accounts.…
Smith and Johns, a CPA firm, was
approached by Pioneer Company to
conduct an audit for its financial
statements for the year 2020. Smith
and Johns asked Pioneer Company
to grant it an approval to contact the
predecessor auditor before giving its
acceptance on the new engagement.
Smith and Johns would most
probably inquire the predecessor
auditor about the following issue(s):
*
Management integrity
Fraud and illegal acts committed in pri
years
Reasons for change of auditors
All of the above
None of the above
Chapter 24 Solutions
EBK AUDITING AND ASSURANCE SERVICES
Ch. 24 - Prob. 1RQCh. 24 - Explain why an auditor is interested in a clients...Ch. 24 - Prob. 3RQCh. 24 - Prob. 4RQCh. 24 - Prob. 5RQCh. 24 - Prob. 6RQCh. 24 - Prob. 7RQCh. 24 - Prob. 8RQCh. 24 - What major considerations should the auditor take...Ch. 24 - Identify five audit procedures normally done as a...
Ch. 24 - Prob. 11RQCh. 24 - Prob. 12RQCh. 24 - Prob. 13RQCh. 24 - Prob. 14RQCh. 24 - Prob. 15RQCh. 24 - Prob. 16RQCh. 24 - Prob. 17RQCh. 24 - Prob. 18.1MCQCh. 24 - Prob. 18.2MCQCh. 24 - Prob. 18.3MCQCh. 24 - Prob. 18.4MCQCh. 24 - Prob. 19.1MCQCh. 24 - Prob. 19.2MCQCh. 24 - Prob. 19.3MCQCh. 24 - Prob. 20.1MCQCh. 24 - Prob. 20.2MCQCh. 24 - Prob. 20.3MCQCh. 24 - Prob. 21.1MCQCh. 24 - Prob. 21.2MCQCh. 24 - Prob. 21.3MCQCh. 24 - Prob. 22DQPCh. 24 - In an audit of the Marco Corporation as of...Ch. 24 - Prob. 24DQPCh. 24 - The field work for the June 30, 2016, audit of...Ch. 24 - Prob. 26DQPCh. 24 - Prob. 27DQPCh. 24 - Prob. 28DQPCh. 24 - Prob. 29DQPCh. 24 - Prob. 30DQP
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Similar questions
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