Which publicly traded companies must have their financial statements and internal controls audited by independent auditors in accordance with Generally Accepted Auditng Standards (GAAS)? All public companies that will recognize a loss in the current year Wendy's All public companies that have generated $50 million in revenue or more Apple All of these are correct

Which publicly traded companies must have their financial statements and internal controls audited by independent auditors in accordance with Generally Accepted Auditng Standards (GAAS)? All public companies that will recognize a loss in the current year Wendy's All public companies that have generated $50 million in revenue or more Apple All of these are correct

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

Chapter4: Professional Legal Liability

Section: Chapter Questions

Problem 17RQSC

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what happens when auditor is being irresponsible to the company?
Management informed the auditor that they erroneously charged the acquisition of SMC shares to the account “Marketable Securities” when they never had any intention to dispose of this when in need of cash. These shares should be treated as securities @ FVOCI – noncurrent. The company recorded a 20,000 decline in market value of these shares and charged this to operating expenses. Requirement: Prepare adjusting entries
Your audit team is reviewing the third-quarter financial statements of smirks Inc. a publicly traded company the audit manager Jason thinks the client may have omitted an important item and has asked you to research whether interim financial statements are required to include earnings per share amounts prepare an email respond to Jason's question, or any other potential ramifications of smirks inks omission that come to mind which you can offer to research. 4.10
You are planning the audit of Bluechip Ltd, a company with investments in listed securities that you consider to have a low level of inherent risk. What is the most appropriate level of planning materiality for the 30 June 2022 audit given the following balances: (all amounts are in $'000) Sales: 1420 (2022); 1278 (2021); 1136 (2020) Profit: 23 (2022); 188.6 (2021): -161 (2020) Current assets: 1800 (2022); 1620 (2021); 1440 (2020) a. 1.2 b. 2.3 c. 14.2 d. 18.0
Independent Auditor's ReportWe have audited the consolidated financial statements of Concord, Inc., and subsidiaries as of September 30, 2019,and the related consolidated statements of income, changes in stockholder's equity and cash flows for the year then ended. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits. We did not audit the financial statements of Biotherm, Inc., a wholly-owned subsidiary, which statements reflect total assets and revenues constituting 22%and 20% respectively at September 30, 2019 of the consolidated totals. Those statements were audited by Ball &Brown, CPAs, whose reports have been furnished to us, and our opinion, insofar as it relates to the amountsincluded for Biotherm, Inc. is based solely on their report.We conducted our audit in accordance with generally accepted auditing standards. Those standards require thatwe plan and…
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Statement 1: After an audit report containing an unqualified opinion on a non-public client's financial statements was issued, the client decided to sell the shares of a subsidiary that accounts for 30% of its revenue and 25% of its net income. The auditor should take no action because the auditor has no obligation to make any further inquiries, Statement 2: After an audit report containing an unqualified opinion on a non-public client's financial statements was issued, the client decided to sell the shares of a subsidiary that accounts for 30% of its revenue and 25% of its net income. The auditor should notify the entity that the auditor's report may no longer be associated with the financial statements. Statement 3: After an audit report containing an unqualified opinion on a non-public client's financial statements was issued, the client decided to sell the shares of a subsidiary that accounts for 30% of its revenue and 25% of its net income. The auditor should describe the effect…
In an article published in The Australian on 4 May 2021, it was noted that the company named as the ‘ABCGroup’ reported a big loss equal to $595 million and negative net assets of $75 million. The company seemsinsolvent and unable to pay all of its liabilities if they fall due. The auditors did not qualify the financialstatements, nor challenge the directors on their assertion that the company was a going concern.Requirement:1) Discuss the implications for the company’s financial statements preparation and presentation if thecompany is not considered to be a going concern? Use the conceptual framework concept andgeneral-purpose financial statements requirement given the evidence provided above?
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