EBK PRINCIPLES OF AUDITING & OTHER ASSU
EBK PRINCIPLES OF AUDITING & OTHER ASSU
21st Edition
ISBN: 9781260299434
Author: WHITTINGTON
Publisher: YUZU
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Chapter 20, Problem 36ITC

a.

To determine

Provide the subject matter for the given engagement.

b.

To determine

Provide the procedure that might derive suitable criteria for such an engagement.

c.

To determine

Explain the nature of the required assertion from management for the given engagement.

d.

To determine

Provide whether the attestation engagements are acceptable when the resulting report is to be used for advertising purposes.

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Define working capital and explain its importance in financial health and liquiditymanagement.2. Assess how the matching concept and accrual basis affect the reporting ofcurrent assets and liabilities.3. Using a hypothetical balance sheet (you may create one), identify at least 5current assets and 5 current liabilities and analyze how changes in theseelements affect liquidity ratios.4. Recommend at least two strategies  to optimizeworking capital.
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