AUDITING LL W/ CONNECT <C>
11th Edition
ISBN: 9781307416268
Author: MESSIER
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Question
Chapter 17, Problem 17.26P
a.
To determine
Concept Introduction:
Representation letter is a letter provided by the company to its accountant with the terms that the financial statement and its engagement for the time period is the management’s responsibility. And the letter indicates the accuracy of the financial statement that company provides to the external auditor for the audit and analysis.
To discuss: The circumstances and purpose to obtain the representation letter
b.
To determine
Concept Introduction:
Representation letter is a letter provided by the company to its accountant with the terms that the financial statement and its engagement for the time period is the management’s responsibility. And the letter indicates the accuracy of the financial statement that company provides to the external auditor for the audit and analysis.
To discuss: The individual whom the representation letter should be addressed, time when it should be dated, and the individual who should sign the letter and effect of his or her to refusal to sign the letter
c.
To determine
Concept Introduction:
Representation letter is a letter provided by the company to its accountant with the terms that the financial statement and its engagement for the time period is the management’s responsibility. And the letter indicates the accuracy of the financial statement that company provides to the external auditor for the audit and analysis.
To discuss: The circumstances when an auditor’s other responsibilities be relieved by obtaining a management representation letter
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Written Representations. Hart, an assistant accountant with the firm of Better & Best, CPAs, is auditing the financial statements of Tech Consolidated Industries Inc. The firm’s audit plan calls for the preparation of written representations.
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North, CPA, is planning an independent audit of the financial statements of General Company. In determining the nature, timing, and extent of the audit procedures, North is considering General’s internal audit function, which is staffed by Tyler.Required:a. In what ways can the internal auditor’s work be relevant to North, the independent auditor?b. What factors should North consider, and what inquiries should North make in deciding whether to use Tyler’s internal audit work?
a) What are key audit matters? How do these affect the format of the audit report? b) Stewart Jones is reviewing the results of the subsequent events audit procedures. Stewart is writing a report for his audit partner based on these results and will be attending a meeting tomorrow with the partner and representatives of the company to discuss them. The issue will be whether the financial report should be amended, or additional notes included for these subsequent events.Many of the items are not material and Stewart will recommend that no action be taken with respect to these. However, there are several items that Stewart believes are material and should be discussed at the meeting. These are as follows.(i) The board is planning to issue shares in a private placement on 15 August. (ii) The share issue is to fund the purchase of a 60 per cent stake in another company. The negotiations are in the final stages and although the contract is not yet signed it will be signedby 15 August.(iii)…
Chapter 17 Solutions
AUDITING LL W/ CONNECT <C>
Ch. 17 - Prob. 17.1RQCh. 17 - Prob. 17.2RQCh. 17 - Prob. 17.3RQCh. 17 - Prob. 17.4RQCh. 17 - Prob. 17.5RQCh. 17 - Prob. 17.6RQCh. 17 - Prob. 17.7RQCh. 17 - Prob. 17.8RQCh. 17 - Prob. 17.9RQCh. 17 - Prob. 17.10RQ
Ch. 17 - Prob. 17.11RQCh. 17 - Prob. 17.12RQCh. 17 - Prob. 17.13MCQCh. 17 - Prob. 17.14MCQCh. 17 - Prob. 17.15MCQCh. 17 - Prob. 17.16MCQCh. 17 - Prob. 17.17MCQCh. 17 - Prob. 17.18MCQCh. 17 - Prob. 17.19MCQCh. 17 - Prob. 17.20MCQCh. 17 - Prob. 17.21MCQCh. 17 - Prob. 17.22PCh. 17 - Prob. 17.23PCh. 17 - Prob. 17.24PCh. 17 - Prob. 17.25PCh. 17 - Prob. 17.26PCh. 17 - Prob. 17.27PCh. 17 - Prob. 17.28P
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