Boom, Inc. is a manufacturer and retailer of household furniture. Your audit of the company's financial statements for the year ended December 31, 2022, discloses the following debt obligations of the company at the end of its reporting period. Boom's financial statements are authorized for issuance on March 6, 2023. 1. 2. 3. A P250,000 short-term obligation due on March 1, 2023. Its maturity could be extended to March 1, 2025, provided Boom agrees to provide additional collateral. On February 12, 2023, an agreement is reached to extend the loan's maturity to March 1, 2025. A short-term obligation of P3,600,000 in the form of notes payable due February 5, 2023. The company issued 75,000 ordinary shares for P36 per share on January 25, 2023. The proceeds from the issuance, plus P900,000 cash, were used to fully settle the debt on February 5, 2023. A long-term obligation of P4,000,000 due December 1, 2032. On November 10, 2022, Boom breaches a covenant on its debt obligation and the loan becomes payable on demand. An agreement is reached to provide a waiver of the breach on December 11, 2022. 4. A long-term obligation of P8,000,000. The loan is maturing over 4 years in the amount of P2,000,000 per year. The loan is dated September 1, 2022, and the first maturity date is September 1, 2023. 5. A debt obligation of P2,500,000 maturing on December 31, 2025. The debt is callable on demand by the lender any time.

Financial audit Q&A What risks that may occur during assertion testing, but cannot be prevented due to the lack of time? What reports that need to be prepared to find out if there are significant changes in the client? What is the parties reported by the auditor that are related to the results of the audit reports made? What terms that must be included in the document prepared by the client? What is the inspection activities to ensure the shipping or Destination Point in the recording of the financial statements is correct in accordance with the fragments? The auditor needs to know that the ending balance recorded in the financial statements is appropriate based on evidence of transactions in the company. What is the audit assertion underlying the vouching procedure? What is the audit assertion underlying the tracing procedure? What is the risk that caused by the sample taken by the Auditor does not describe the characteristics of the data from the entire data population?…

What should occur if the audit report has already been issued and the auditor becomes aware of a situation that was present as of the Balance Sheet date (a subsequent event)?

Three common types of attestation services are:-  A) audits of historical financial statements, reviews of historical financial statements, and audits of internal control over financial reporting.B) audits of historical financial information, verifications of historical financial information, and attestations regarding internal controls. C) reviews of historical financial information, verifications of future financial information, and attestations regarding internal controls.D) audits of historical financial information, reviews of controls related to investments, and verifications of historical financial information

Question 10 When an auditor is reviewing an audit client's allowance for doubtful accounts the auditing is assessing which management assertion about the client's accounts receivables.     Existance     Completeness     Valuation     Rights and obligations

Financial audit Q&A What is the inspection activities to ensure the shipping or Destination Point in the recording of the financial statements is correct in accordance with the fragments?