Mention the purpose of financial audits.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 11, Problem 1Q

To determine

Mention the purpose of financial audits.

Expert Solution

Explanation of Solution

Financial audit: The audit which focusses on the evaluation of the faithful and fair representation (of financial statements of government entities, educational institutions, health care organizations, and not-for-profit organizations), and the reliability of the financial information, in conformity with the generally accepted accounting standards (GAAS) established by Accounting Standards Board (ASB) of American Institute of Certified Public Accountants (AICPA), by a certified public accountant (CPA) is referred to as financial audit.

Purposes of financial audit:

Provide assurance to the external users that the financial statements are prepared in conformity with GAAS, established by ASB of AICPA.
Report that the material facts have been disclosed.
Enhance the credibility of the financial information from the opinion declared by the CPA out of his objectivity in the audit engagement.

To determine

Indicate the bodies that are responsible for setting standards for the financial audits of government and not-for-profit organizations.

Expert Solution

Explanation of Solution

Governing or authorized bodies: Government entities, educational institutions, health care organizations, and not-for-profit organizations should use generally accepted accounting standards (GAAS) that are established by Accounting Standards Board (ASB) of American Institute of Certified Public Accountants (AICPA). A broader scope is provided by generally accepted government accounting standards (GAGAS) that are established by Government Accountability Office (GAO). The final level of audit is Single Audit Act which incorporates GAGAS. The Single Audit Act is the complex level of audit.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

I am searching for the accurate solution to this general accounting problem with the right approach.

Equipment with a cost of $2,340,000 has an estimated salvage value of $73,000 and an estimated life of 5 years or 62,000 hours. It is to be depreciated using the units-of-activity method. What is the amount of depreciation for the first full year, during which the equipment was used for 11,500 hours?

Felicity Systems has net income of $275,000, net sales of $1,950,000, and average total assets of $1,250,000. What is its return on total assets?

Answer 2

Question

Chapter 11, Problem 1Q

To determine

Mention the purpose of financial audits.

Expert Solution

Explanation of Solution

Financial audit: The audit which focusses on the evaluation of the faithful and fair representation (of financial statements of government entities, educational institutions, health care organizations, and not-for-profit organizations), and the reliability of the financial information, in conformity with the generally accepted accounting standards (GAAS) established by Accounting Standards Board (ASB) of American Institute of Certified Public Accountants (AICPA), by a certified public accountant (CPA) is referred to as financial audit.

Purposes of financial audit:

Provide assurance to the external users that the financial statements are prepared in conformity with GAAS, established by ASB of AICPA.
Report that the material facts have been disclosed.
Enhance the credibility of the financial information from the opinion declared by the CPA out of his objectivity in the audit engagement.

To determine

Indicate the bodies that are responsible for setting standards for the financial audits of government and not-for-profit organizations.

Expert Solution

Explanation of Solution

Governing or authorized bodies: Government entities, educational institutions, health care organizations, and not-for-profit organizations should use generally accepted accounting standards (GAAS) that are established by Accounting Standards Board (ASB) of American Institute of Certified Public Accountants (AICPA). A broader scope is provided by generally accepted government accounting standards (GAGAS) that are established by Government Accountability Office (GAO). The final level of audit is Single Audit Act which incorporates GAGAS. The Single Audit Act is the complex level of audit.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 11, Problem 1Q

To determine

Mention the purpose of financial audits.

Expert Solution

Explanation of Solution

Financial audit: The audit which focusses on the evaluation of the faithful and fair representation (of financial statements of government entities, educational institutions, health care organizations, and not-for-profit organizations), and the reliability of the financial information, in conformity with the generally accepted accounting standards (GAAS) established by Accounting Standards Board (ASB) of American Institute of Certified Public Accountants (AICPA), by a certified public accountant (CPA) is referred to as financial audit.

Purposes of financial audit:

Provide assurance to the external users that the financial statements are prepared in conformity with GAAS, established by ASB of AICPA.
Report that the material facts have been disclosed.
Enhance the credibility of the financial information from the opinion declared by the CPA out of his objectivity in the audit engagement.

To determine

Indicate the bodies that are responsible for setting standards for the financial audits of government and not-for-profit organizations.

Expert Solution

Explanation of Solution

Governing or authorized bodies: Government entities, educational institutions, health care organizations, and not-for-profit organizations should use generally accepted accounting standards (GAAS) that are established by Accounting Standards Board (ASB) of American Institute of Certified Public Accountants (AICPA). A broader scope is provided by generally accepted government accounting standards (GAGAS) that are established by Government Accountability Office (GAO). The final level of audit is Single Audit Act which incorporates GAGAS. The Single Audit Act is the complex level of audit.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 11, Problem 1Q

To determine

Mention the purpose of financial audits.

Expert Solution

Explanation of Solution

Financial audit: The audit which focusses on the evaluation of the faithful and fair representation (of financial statements of government entities, educational institutions, health care organizations, and not-for-profit organizations), and the reliability of the financial information, in conformity with the generally accepted accounting standards (GAAS) established by Accounting Standards Board (ASB) of American Institute of Certified Public Accountants (AICPA), by a certified public accountant (CPA) is referred to as financial audit.

Purposes of financial audit:

Provide assurance to the external users that the financial statements are prepared in conformity with GAAS, established by ASB of AICPA.
Report that the material facts have been disclosed.
Enhance the credibility of the financial information from the opinion declared by the CPA out of his objectivity in the audit engagement.

To determine

Indicate the bodies that are responsible for setting standards for the financial audits of government and not-for-profit organizations.

Expert Solution

Explanation of Solution

Governing or authorized bodies: Government entities, educational institutions, health care organizations, and not-for-profit organizations should use generally accepted accounting standards (GAAS) that are established by Accounting Standards Board (ASB) of American Institute of Certified Public Accountants (AICPA). A broader scope is provided by generally accepted government accounting standards (GAGAS) that are established by Government Accountability Office (GAO). The final level of audit is Single Audit Act which incorporates GAGAS. The Single Audit Act is the complex level of audit.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 11, Problem 1Q

To determine

Mention the purpose of financial audits.

Expert Solution

Explanation of Solution

Financial audit: The audit which focusses on the evaluation of the faithful and fair representation (of financial statements of government entities, educational institutions, health care organizations, and not-for-profit organizations), and the reliability of the financial information, in conformity with the generally accepted accounting standards (GAAS) established by Accounting Standards Board (ASB) of American Institute of Certified Public Accountants (AICPA), by a certified public accountant (CPA) is referred to as financial audit.

Purposes of financial audit:

Provide assurance to the external users that the financial statements are prepared in conformity with GAAS, established by ASB of AICPA.
Report that the material facts have been disclosed.
Enhance the credibility of the financial information from the opinion declared by the CPA out of his objectivity in the audit engagement.

To determine

Indicate the bodies that are responsible for setting standards for the financial audits of government and not-for-profit organizations.

Expert Solution

Explanation of Solution

Governing or authorized bodies: Government entities, educational institutions, health care organizations, and not-for-profit organizations should use generally accepted accounting standards (GAAS) that are established by Accounting Standards Board (ASB) of American Institute of Certified Public Accountants (AICPA). A broader scope is provided by generally accepted government accounting standards (GAGAS) that are established by Government Accountability Office (GAO). The final level of audit is Single Audit Act which incorporates GAGAS. The Single Audit Act is the complex level of audit.

Answer 6

Chapter 11, Problem 1Q

To determine

Mention the purpose of financial audits.

Expert Solution

Explanation of Solution

Financial audit: The audit which focusses on the evaluation of the faithful and fair representation (of financial statements of government entities, educational institutions, health care organizations, and not-for-profit organizations), and the reliability of the financial information, in conformity with the generally accepted accounting standards (GAAS) established by Accounting Standards Board (ASB) of American Institute of Certified Public Accountants (AICPA), by a certified public accountant (CPA) is referred to as financial audit.

Purposes of financial audit:

Provide assurance to the external users that the financial statements are prepared in conformity with GAAS, established by ASB of AICPA.
Report that the material facts have been disclosed.
Enhance the credibility of the financial information from the opinion declared by the CPA out of his objectivity in the audit engagement.

Answer 7

Chapter 11, Problem 1Q

To determine

Mention the purpose of financial audits.

Answer 8

Expert Solution

Explanation of Solution

Financial audit: The audit which focusses on the evaluation of the faithful and fair representation (of financial statements of government entities, educational institutions, health care organizations, and not-for-profit organizations), and the reliability of the financial information, in conformity with the generally accepted accounting standards (GAAS) established by Accounting Standards Board (ASB) of American Institute of Certified Public Accountants (AICPA), by a certified public accountant (CPA) is referred to as financial audit.

Purposes of financial audit:

Provide assurance to the external users that the financial statements are prepared in conformity with GAAS, established by ASB of AICPA.
Report that the material facts have been disclosed.
Enhance the credibility of the financial information from the opinion declared by the CPA out of his objectivity in the audit engagement.

Answer 9

Expert Solution

Answer 10

Expert Solution

Answer 11

Expert Solution

Answer 12

To determine

Indicate the bodies that are responsible for setting standards for the financial audits of government and not-for-profit organizations.

Expert Solution

Explanation of Solution

Governing or authorized bodies: Government entities, educational institutions, health care organizations, and not-for-profit organizations should use generally accepted accounting standards (GAAS) that are established by Accounting Standards Board (ASB) of American Institute of Certified Public Accountants (AICPA). A broader scope is provided by generally accepted government accounting standards (GAGAS) that are established by Government Accountability Office (GAO). The final level of audit is Single Audit Act which incorporates GAGAS. The Single Audit Act is the complex level of audit.

Answer 13

To determine

Indicate the bodies that are responsible for setting standards for the financial audits of government and not-for-profit organizations.

Answer 14

Expert Solution

Explanation of Solution

Governing or authorized bodies: Government entities, educational institutions, health care organizations, and not-for-profit organizations should use generally accepted accounting standards (GAAS) that are established by Accounting Standards Board (ASB) of American Institute of Certified Public Accountants (AICPA). A broader scope is provided by generally accepted government accounting standards (GAGAS) that are established by Government Accountability Office (GAO). The final level of audit is Single Audit Act which incorporates GAGAS. The Single Audit Act is the complex level of audit.