Pro forma statements are generally prepared six months to a year into the future. True or False True False
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Pro forma statements are generally prepared six months to a year into the future. True or False True False
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- Please Solve In 20minsChoose the correct statement below:A. The report form of presenting the statement of financial position follows that of an account, meaning, the assets are shown on the left side and the liabilities and equity on the right side.B. A financial liability due within twelve months after the reporting period shall be classified as noncurrent when it is refinanced on a long-term basis before the issue of financial statements.C. Current and noncurrent presentation of assets and liabilities provides useful information when the entity supplies goods or services within a clearly identifiable operating cycle.D. When there is much variability, the operating cycle is measured at the mean value.You are the auditor of green case in for 2021. To date the aggregate of uncorrected misstatements that you have identified is approaching the materiality level. What is the best course of action to take?a. Consider whether it is likely that undetected misstatements, when taken with aggregate uncorrected misstatements could exceed materiality level.b. Consider whether it is likely that undetected misstatements, when taken with aggregate corrected misstatements could exceed materiality level.c. Consider whether it is likely that undetected misstatements, when taken with individual uncorrected misstatements could exceed materiality level.d. Consider whether it is likely that detected misstatements, when taken with aggregate uncorrected misstatements could exceed materiality level.
- A company believes that there might be substantial doubt that it can meet its financial obligations as they come due for one year from the issuance of its financial statements. What plans might mitigate this concern?119-Mr. Abdullah is an auditor in XYZ LLC. His job is to see the correctness of financial statements and to give suggestions. He came to know that his company is entering into a new product line, so he started discussing about it on various places and about its projection in the future. In this situation there is a chance of a. Advocacy threat b. Familiarity threat c. Self review threat d. None of the options10. A firm has the calendar year as its fiscal year. In January 2020, a Court delivers a ruling on a suit against the firm. The suit had commenced in 2019. The firm is yet to issue its 2019 financial statements. Which paragraph of the Codification sheds light on whether this information should be recognized in its 2019 financial statements? PLEASE ANSWER!
- 6a. After struggling with the accounting training, Aaron is unsure whether he can complete the end-of-year financial reporting with no errors in the time allotted. In this case, Aaron is low on the ________ element of expectancy theory. a. expectancy b. valence c. outcomes d. performance e. instrumentalityanswer in 30 minutes What type of opinion is issued by the auditorr if he or she is unable to determine the overall fairness of the financial statements?According to SOX rules that mandate auditor rotation, the lead audit partner on an engagement is prohibited from providing those services for a client for greater than five consecutive years. The purpose of the rule is to encourage professional skepticism. Discuss the costs and benefits of auditor rotation as you see it. Do you think audit firms should be rotated periodically?
- An example of a Type I subsequent event would be A. a sudden change in senior management after the financial statement date B. a filing with the Securities and Exchange Commission (SEC) of an amended form 10K after the financial statement date C. the bankruptcy of a client’s customer after year-end as a result of poor financial condition that existed as of the balance sheet date D. the bankruptcy of a client’s customer after year-end as a result of poor financial condition that existed after the balance sheet dateA client uses percentages of aging categories to calculate the allowance for doubtful accounts. When auditing the allowance for doubtful accounts, the auditor must… Question 4 options: Ensure that the client’s aging categories are consistent with industry averages. Ensure that the client has calculated the allowance for the current and all prior years using the same percentages for uncollectible accounts. Perform tests to ensure that the aging categories are accurate. Perform tests to ensure that management has not exercised judgment when calculating the allowance for doubtful accounts.answer in 30 minutes Discuss various type of opinion is issued by the auditorr if he or she is unable to determine the overall fairness of the statements?
