Reference no: EM132545209

Problem 1: What are the four things required of an auditor to obtain reasonable assurance that are outlined in the Performance section of the Principles Underlying an Audit Conducted in Accordance with GAAS?

Problem 2: Cart and Blanche, a regional accounting firm is determining whether it wants to accept a new client, Ivy Photos. Ivy Photos is currently a privately held photography studio operating 24 studios in several states, but the company's management is planning an Initial Public Offering in the near future. This is the company's first audit. What steps should Cart and Blanche take in evaluating this new client?

Problem 3: Your classmate asserts, "Accountants shouldn't need to take business courses besides accounting, because they are only interested in the financial statements of a company." Defend or refute this statement using the concepts learned in class.

Problem 4: For an auditor, why are management assertions important to the audit process? Define what it means for an auditor to determine the nature, timing and extent of the testing that needs to be performed. You should define all three of these separately in your answer.