financial statements are presented for 1997, the current year, and the four preceding years, 1993, 1994, 1995 and 1996. The auditor's report covers all five of these years and does not mention consistency. The auditor's report implies consistent application of accounting principles for A. 1997 and 1996 only B. 1997 and 1996, and 1995 only C. 1997, 1996, 1995, 1994, 1993, and 1992 D. 1997, 1996, 1995, 1994, and 1993

financial statements are presented for 1997, the current year, and the four preceding years, 1993, 1994, 1995 and 1996. The auditor's report covers all five of these years and does not mention consistency. The auditor's report implies consistent application of accounting principles for A. 1997 and 1996 only B. 1997 and 1996, and 1995 only C. 1997, 1996, 1995, 1994, 1993, and 1992 D. 1997, 1996, 1995, 1994, and 1993

Auditing: A Risk Based-Approach to Conducting a Quality Audit

10th Edition

ISBN:9781305080577

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter17: Other Services Provided By Audit Firms

Section: Chapter Questions

Problem 53RSCQ

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Answer the following subquestion as a result of an audit: a. How much is the correct carrying value of the notes payable as of December 31, 2023? b. How much is the correct interest expense that Meekah should recognized in the December 31, 2023 statement of comprehensive income? c. How much of the note is reported in the non-current liability section of the December 31, 2023 statement of financial position?
When interim financial information is presented in a footnote to annual financial statements,the standard audit report on the annual financial statements shoulda. Not mention the interim information unless there is an exception that the auditors need toinclude in the report.b. Contain an audit opinion paragraph that specifically mentions the interim financial information if it is not in conformity with GAAP.c. Contain an explanatory paragraph that gives negative assurance on the interim information if it has been reviewed.d. Contain an explanatory paragraph if the interim information note is labeled “Unaudited.”
When comparative financial statements are presented but the predecessor auditor's report is not presented, the current auditor should do which of the following in the audit report? a. Disclaim an opinion on the prior year's financial statements. b. Identify the predecessor auditor who audited the financial statements of the prior year. c. Indicate the type of opinion expressed by the predecessor auditor. d. Make no comment with respect to the predecessor audit. e. Include a KAM paragraph that indicates the refusal by the predecessor auditor to re-issue the prior-year opinion.
You are the audit team assign to audit the unaudited set of financial statements for XYZ Company Ltd. for year ended 30 June 2002. Prepare written report to highlight the audit procedures to be used to substantiate/confirm the amounts reported for following items on the financial statements provided: Revenue and accounts receivable Purchases and accounts payable
An auditor issues a report dated 2/12/Year 2 on financial statements for the year ended 12/31/Year 1. Which best describes the auditor's responsibility for an event occurring on 2/1/Year 2 and an event occurring on 3/1/Year 27 A. The auditor has an active responsibility to investigate both events. B. The auditor has an active responsibility to investigate the 2/1/Year 2 event, but no responsibility concerning the 3/1/Year 2 event. C. The auditor has an active responsibility to investigate the 2/1/Year 2 event, and must also consider the effect of the 3/1/Year 2 event if it comes to his/her attention. D. The auditor has no responsibility for either event, since both occur after the date of the financial statements.
In the audit of notes payable, which balance-related audit objective is generally oneof the most important for the auditor to verify?(1) Notes payable reflected on the balance sheet at the end of the year exist.(2) Notes payable due to related parties are properly reflected on the balance sheet.(3) Existing notes payable are included on the balance sheet as of year end.(4) Notes payable are reflected at net realizable value as of the balance sheet date
which of the following in not related to standards of reporting Select one: a. The report shall identify those circumstances in which such principles have not been consistently observed in the current period in relation to the preceding period b. The report shall state whether the financial statements are presented in accordance with generally accepted accounting principles c. The report shall contain either an expression of opinion regarding the financial statements, taken as a whole, or an assertion to the effect that an opinion cannot be expressed d. A sufficient understanding of internal control is to be obtained to plan the audit and to determine the nature, timing, and extent of tests to be performed. e. All Of the above are standards of reporting
For a publicly owned company, indicate which of the fol-lowing accounting activities are likely to occur at or shortly after year-end. (More than one answer may be correct.)a. Preparation of income tax returns.b. Adjusting and closing of the accounts.c. Drafting of disclosures that accompany the fi nancialstatements.d. An audit of the fi nancial statements by an independentCPA fi rm.
Determine the following as a result of your audit: a. How much of the notes payable is reported in the non-current liabilities section of the statement of financial position as of December 31, 2023? b. How much is the correct interest expense for the year ended December 31, 2024? show solution:
You are the audit team assign to audit the unaudited set of financial statements for XYZ Company Ltd. for year ended 30 June 2002. Prepare written report to highlight the audit procedures to be used to substantiate/confirm the amounts reported for following items on the financial statements provided: Purchases and accounts payable
The date of the auditor's report I. Should not be earlier than the date the financial statements were authorized for issue II. Is usually placed at the last part of the auditor's report III. Should in a format of Month-Date-Year IV. Is not a required element of an Independent Auditor's Report * I, II, III and IV II, III and IV I and II I, II and III
Which of the following is a requirement of the Sarbanes–Oxley Act of 2002?a. Registration of all auditing firms with the Public Company Accounting Oversight Board.b. Annual inspection of all auditing firms registered with the Public Company Accounting Oversight Board.c. A monetary fee assessed on organizations issuing securities.d. Overall assessment of the work of the SEC each year.