Because of increasing profits and inventory prices, the company changed from FIFO to LIFOinventory, which had a material effect on inventory and cost of sales. The change is adequatelydisclosed in the financial statements, and the auditor concurs with the change. The auditor willmost likely issue a(an):Standard unmodified opinionO Unmodified opinion with explanatory paragraphO Unmodified opinion with changes to standard report wordingQualified oplonDisclaimer of opinionO Adverse opinion

An auditor should provide an unqualified opinion on the financial statements if he believes that the…

Answered: Because of increasing profits and…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Management decided to undertake a physical inventory count in resolving a perceived weakness in the Company’s inventory control process. You have been appointed as the auditor of Small Limited.Required: Itemise the duties of the auditor in relation to inventories count under the following headings: Before the count, During the count After the count
d. Which of the following correctly identifies a risk facing SSC that might affect Its ability to continue as a going concern over the long run? 4 of 6 Multiple Choice Competition from several competitors. 02:16:38 Your CPA firm's decision to issue standard unmodified audit reports not mentioning the going-concern status during the past five years. Obsolescence of all products due to rapid changes in technology in the industry. The nature of inventory items-small in size, high in value. Untitled docume...pdf A Untitled docume..pdf Untitled docume...pdf roj....docx Presentation se..pdf MacBook Ai
Explain inventory overstatement. A merchandising company has asked you to advise it on how to detect fraudulent financial reporting. Management wants your help in detecting inventory overstatement. Further, management wants to know how to find evidence of inventory overstatement. Using your own numbers, make up an example to show management the effect of overstating inventory. Show how inventory overstatement at the end of Year 1 carries through to the beginning inventory overstatement in Year 2. Prepare a brief report to management suggesting ways management could detect inventory overstatement.
11) To obtain evidence on the completeness assertion for revenue, the auditor would select a sample of shipping documents and trace them to the sales journal True False
BDB independent with respect to the audit of Unigate's 2021 financial statements?\\nc. Basma Mirza, a senior auditor, is aware that under SEC rules her accounting firm should not conduct appraisal or valuation services for a public company audit entity. However, her manager has requested that she appraise some specific large inventory items to verify the company's accounting estimates as part of the audit.\\nd. Heath & Associates, CPAs, is the auditor of Halifax Investments, Inc., a public company. Heath earns most of its
As a result of analytical procedures an auditor determines that gross profit has declined from 30% to 15% in the current year. The auditor should.. A. Document manamgent intentions with respect to reversing the trend. B. Evaluate managment's performance in causing the deline C. Require a footnote disclosure D. Consider the possibility of an error in the financial statements.
An auditor discovered the following errors and irregularities while performing tests of controls: Inventory damaged by rain remains in inventory at full cost. Required: What control would have prevented or detected each of the aforementioned errors/irregularities? What tests should the auditor perform to test each control? To which financial statement assertion does the error or irregularity relate?
The following question pertain to the financial statement assertions enumerated below: T- Existence or Occurrence Il - Completeness III - Cut-off IV - Valuation and Allocation V- Accuracy VI - Rights and Obligations VII – Presentation and Disclosure and Classification

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