Reference no: EM131580796

Section 9 - COMPLETING THE AUDIT

Problem 1 - Provide five analytical procedures you would perform at the end of the audit. Do not use the procedure discussed in Problem 2.

Problem 2 - Assume that you calculated the ratio of depreciation expense to equipment and found a significant decrease in the ratio. Give two possible explanations.

Problem 5 - Address the following:

Assume you found that the segment previously discussed was actually sold on February 20, 2014.

A major customer (accounting for 18% of total revenue) declared bankruptcy January 27, 2014.

Section 10 - WRITING THE REPORT

Problem 1 - Write the audit report assuming that the predecessor auditor qualified last year'saudit report.

Problem 2 - How would your audit report change, if at all, if the predecessor auditor withdrew from the audit last year and refused to be associated with the report or the company's statements? Given the late date, the client could not find another auditor.

Problem 3 - Assume that, towards the end of the audit, management has asked that the audit be downgraded to a review. What is your response?