Chapter 6, Problem 1CFSAP

1.

To determine

Indicate the auditing firm of Incorporation DSG, and indicate the opinion expressed by the auditors.

2.

To determine

Indicate the opinion expressed by auditors about the accounting standards used by Incorporation DSG, explain the process of audit as expressed by the auditors, and explain about the internal control of Incorporation DSG as expressed by the auditors

3.

To determine

Mention the effectiveness of internal control and its responsibility as reported by the management and the auditor.

4.

To determine

Indicate whether the financial statements of Incorporation DSG reflect historical or current market value, indicate the stockholders’ equity value as reported on the balance sheet, and explain the reason for the difference between the stock price as indicated in the balance sheet and the stock price at which it is sold.

5.

To determine

Explain whether the financial statements are understandable and reliable.