Auditing and Assurance Services (16th Edition)
16th Edition
ISBN: 9780134065823
Author: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Chris E. Hogan
Publisher: PEARSON
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Question
Chapter 5, Problem 19DQP
To determine
Explain whether the auditor’s behavior will be considered as “non-negligence, ordinary negligence, gross negligence, constructive fraud, fraud, or criminal behavior”, for each of the situations given
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Purnama Sdn Bhd involve in event management business and provide services to private and government agency. The company is required to have annual audit under the provision of the Companies Act, 1965. The owner of the company Mr. Hassan has some bookkeeping experience and has personally prepared the company’s financial statements. He does not understand why such statement should be examined by an external auditor.
Explain five (5) ways in which an independent audit beneficial to Purnama Sdn Bhd.
You have been appointed as an external auditor of XYZ Textile Limited and completed the audit. You did not find any material misstatement in financial statements of the XYZ Textile Ltd. You are required to write audit report.
Andrew Wilson, CPA, has assembled the financial statements of Texas Mirror Co. Texas Mirror is a small nonpublic company. Wilson has not performed an audit of the financial statements in accordance with generally accepted auditing standards. Wilson is confused about the standards applicable to this type of engagement.
Please discuss the following:
Identify and Explain where Wilson should look for guidance concerning this engagement.
Discuss Wilson’s responsibilities with respect to a preparation of these financial statements.
Chapter 5 Solutions
Auditing and Assurance Services (16th Edition)
Ch. 5 - Prob. 1RQCh. 5 - Prob. 2RQCh. 5 - Prob. 3RQCh. 5 - Prob. 4RQCh. 5 - Prob. 5RQCh. 5 - Prob. 6RQCh. 5 - Prob. 7RQCh. 5 - Prob. 8RQCh. 5 - Prob. 9RQCh. 5 - Prob. 10RQ
Ch. 5 - What potential sanctions does the SEC have against...Ch. 5 - Prob. 12RQCh. 5 - Prob. 13RQCh. 5 - Prob. 14.1MCQCh. 5 - Prob. 14.2MCQCh. 5 - Prob. 14.3MCQCh. 5 - Prob. 15.1MCQCh. 5 - Prob. 15.2MCQCh. 5 - Prob. 15.3MCQCh. 5 - Prob. 16.1MCQCh. 5 - Prob. 16.2MCQCh. 5 - Prob. 16.3MCQCh. 5 - Prob. 17DQPCh. 5 - Prob. 18DQPCh. 5 - Prob. 19DQPCh. 5 - Prob. 20DQPCh. 5 - Prob. 21DQPCh. 5 - Prob. 22DQPCh. 5 - Prob. 23DQPCh. 5 - Under Section 11 of the Securities Act of 1933 and...Ch. 5 - Prob. 25DQPCh. 5 - Prob. 26DQPCh. 5 - Prob. 27C
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