EBK AUDITING & ASSURANCE SERVICES: A SY
10th Edition
ISBN: 9781259293245
Author: Jr
Publisher: MCGRAW HILL BOOK COMPANY
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Chapter 18, Problem 18.28P
To determine
Concept Introduction:
To identify:The error or omission in the auditor’s report as drafted by the staff auditor.
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Sorrell, CPA, is auditing the financial statements of Van Dyke as of December 31, 2017. Sorrell’s substantive procedures and other tests indicated that Van Dyke’s financial statements were prepared in accordance with generally accepted accounting principles and, accordingly, Sorrell expressed an unqualified opinion on those financial statements. Because Van Dyke’s securities are registered with the Securities and Exchange Commission, Van Dyke is subject to the reporting requirements of AS 2201. During its assessment of internal control over financial reporting, Van Dyke’s management identified material weaknesses relatedto (1) the method of accounting for sales commissions and (2) separation of duties related to purchase transactions. Sorrell was able to gather sufficient evidence and did not encounter limitations with respect to the evaluation of Van Dyke’s internal control over financial reporting. Sorrell prepared the following draft report on Van Dyke’s internal control…
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Requested: Specify a period of time included in the event after the reporting period.
Assume you are the partner in charge of the 2019 audit of Becker Corporation, a private company. The audit reporthas not yet been prepared. In each independent situation following (1-8), indicate the appropriate action (a-g) tobe taken. The possible actions are as follows:a. Issue an unmodified opinion audit report.b. Qualify both the scope and opinion paragraphs.c. Qualify the opinion paragraph.d. Issue an unmodified opinion with an explanatory paragraph.e. Issue an unmodified opinion with revised wording (no explanatory paragraph).f. Issue an adverse opinion.g. Disclaim an opinion.The situations are as follows:________ 1. Becker Corporation carries its property, plant, and equipment accounts at current market values.Current market values exceed historical cost by a highly material amount, and the effects are pervasive throughoutthe financial statements.________ 2. Management of Becker Corporation refuses to allow you to observe, or make, any counts of inventory.The recorded book…
Chapter 18 Solutions
EBK AUDITING & ASSURANCE SERVICES: A SY
Ch. 18 - Prob. 18.1RQCh. 18 - Prob. 18.2RQCh. 18 - Prob. 18.3RQCh. 18 - Prob. 18.4RQCh. 18 - Prob. 18.5RQCh. 18 - Prob. 18.6RQCh. 18 - Prob. 18.7RQCh. 18 - Prob. 18.8RQCh. 18 - Prob. 18.9RQCh. 18 - Prob. 18.10MCQ
Ch. 18 - Prob. 18.11MCQCh. 18 - Prob. 18.12MCQCh. 18 - Prob. 18.13MCQCh. 18 - Prob. 18.14MCQCh. 18 - Prob. 18.15MCQCh. 18 - Prob. 18.16MCQCh. 18 - Prob. 18.17MCQCh. 18 - Prob. 18.18MCQCh. 18 - Prob. 18.19MCQCh. 18 - Prob. 18.20MCQCh. 18 - Prob. 18.21MCQCh. 18 - Prob. 18.22PCh. 18 - Prob. 18.23PCh. 18 - Prob. 18.24PCh. 18 - Prob. 18.25PCh. 18 - Prob. 18.26PCh. 18 - Prob. 18.27PCh. 18 - Prob. 18.28P
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