Auditing Question

What is meant by the evaluation of a client’s ability to continue as a going concern? What are some situations that would require modification of the auditor’s opinion related to going concern? What is the auditor’s responsibility for assessing a client’s ability to continue as a going concern?

Auditing

What types of opinions does an auditor issue other than unqualified? How does an opinion other than unqualified affect the client? In your opinion, which is the worst? What are the circumstances that warrant each type of opinion?

Audit Evidence and Conclusions for various fixed asset questions

Audit Conclusions or Situations 1. The choice of eight years for straight-line depreciation of the company’s trucks appears unreasonable. I would suggest that the client change to a six-year life and use DDB depreciation. 2. Insurance coverage appears to be inadequate, because the client has chosen to carry only liability insurance on the cement trucks. There is no provision for collision or damage done to the trucks. 3. The client acquired a substantial piece of real estate from the town of Baraboo to build a warehouse in the town’s new industrial complex. The land was donated to the company provided it maintains operations for a minimum of ten years and pays real estate taxes on i... click for more

Detection of Fraud through Audit Procedures

Please read the attached case study and answer: When Mrs. Levi informed the CPA of her suspicions regarding Betty, what responsibilities, if any, did the CPA have to pursue this matter? In addition to preparing tax returns for Howard Street Jewelers, alternately assume that the CPA (a) audited the business’s annual financial statements, (b) reviewed the annual financial statements, and (c) compiled the annual financial statements.

Auditing Questions

How can a purchasing manager use his/her position to defraud the company? What can be done to prevent it? Where could an auditor look to find evidence of losses on purchase commitments and unrecorded liabilities to vendors? Many companies use the computer to generate purchase orders. Who is responsible for authorizing a purchase when the computer generates the purchase order? What controls need to be implemented in the automated matching process to ensure that only authorized payments are made for goods and services actually received, and that payments are made at the authorized prices? Why does the auditor examine travel and entertainment expenses? What would poor controls regarding ... click for more