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What procedures should the auditor use to obtain the information necessary to give the level of assurance required of reviews of financial statements?
Details of other business risks identified from your analytical procedures and background details.
Would your answer change if EFL had written to King & Queen advising you that they intended to make a loan to Impulse and were relying on the 2012 audited financial report to assist them in making their decision?
The managing director has returned from the USA, where he signed a contract to import a line of (vi) clothing that has become the latest fashion fad in the USA. The company has not previously been engaged in the clothing industry.
Debtors are now being collected 15 days (or 16%) faster than the prior year, reducing cash flow concerns and lessening pressure on the provision for doubtful debts.
Control systems in nonprofit organizations will never be as highly developed as in profit-seeking organizations. Do you agree? Explain.
Determine the cost of goods available for sale, the ending inventory, and the cost of goods sold. Then create the journal entries for January 4 and 18.
Describe the likely users of Enron's audited financial statements. How were these various user groups likely affected by the fraud?
How did management perpetrate the fraud? What was management's incentive to perpetrate the fraud? Is this fraud primarily a case of asset misappropriation or fraud- ulent financial reporting?
Match the case with the ruling: Cases: Rulings: Caparo Industries Pty Ltd v. Dickman Duty of Care owed to third parties in the absence of a contract where the plaintiff has suffered physical injury Kingston Cotton Mill Co.
Respond to the email from the audit engagement partner - commence planning the audit for the year ending 31 December 20X2, and you have received an email from Paul Bellow, the audit engagement partner.
What is the purpose of engagement planning? What critical information should the auditor consider during engagement planning? How will this information affect the scope of the audit?
Consider and discuss the specific risks and nature of the company you will be auditing. Create comprehensive audit programs for the cash, financial instruments, sale, and receivables accounts and cycles.
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