Answered: Should the auditors prepare adjusting…

Should the auditors prepare adjusting journal entries to correct all errors they discover in the accounting records for the year under audit ? Explain

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter11: Auditing Inventory, Goods And Services, And Accounts Payable: The Acquisition And Payment Cycle

Section: Chapter Questions

Problem 39RQSC

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20. To correct all errors they discover in the accounting records for the year under audit. The auditors should prepare adjusting journal entries for material items only. Because they are concerned with the fairness, not the preciseness, of the client's financial statements. Select one:TrueFalse
19. The auditors should propose an adjusting journal entry for all material related-party transactions. Select one:TrueFalse
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why would an auditor ensure that all revenue-related disclosures are made in the financial statements
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