As an audit manager at Gung & Ho, CPAs, you have been scheduled to serve as the discussion leader for an in-office training session on consideration of the internal control structure in a financial statement audit. Gung & Ho’s audit practic

John Josephs an audit manager for Tip, Acanoe & Tylerto, was asked to speak at a dinner meeting of the local Small Business Administration Association. The president of the association has suggested that he talk about the various phases of the audit process. John has asked you, his trusted assistant, to prepare an outline for his speech. He suggests that you answer the following. Required: A) List and describe the various phases of an audit. B) Describe how audit procedures designed for one purpose might provide evidence for other purposes. Give an example. C) One of the phases involves understanding an entity's internal control. Why might the members of the association be particulary interested in the work conducted by auditors in this phase of the audit?

PCAOB Auditing Standard No. 5, titled "An Audit of Internal Control Over Financial Reporting that is Integrated with an Audit of Financial Statements," provides guidance for auditors when performing integrated audits.  Visit the PCAOB web site (pcaobus.org) and refer to the "Standards" tab. Read the auditing standard and address the following: a.  In what situations does the integrated audit apply? b.  According to the standard, what is the objective of an audit of internal control over financial reporting? c.  What is the role of risk assessment as it relates to the audit of internal control over financial reporting? d.  How should the auditor determine which controls to test? e.  How might the auditor use evidence obtained in the audit of the financial statements when concluding on the effectiveness of internal control over financial reporting?

Fundamental Principles (Comprehensive). In each of the following, identify which ofthe elements of the fundamental principles is most applicable. In addition, discuss whataction(s) (if any) you believe auditors should take with respect to these issues.a. An entity has contacted you about performing its audit engagement. You have not previously served a client in the entity’s industry, which has many industry-specific accounting issues that are both technical and complex.b. An entity has entered into a number of lease agreements. Based on the requirements ofGAAP, you believe that these obligations meet the criteria for being classified as capitalleases; however, the entity has elected to treat these leases as operating leases, providingfull and complete disclosure of this treatment in the footnotes to the financial statements.c. Because of a disagreement with its current auditors, an entity has contacted you aboutconducting its current-year audit. However, because the previous auditors…