Assess Grant Thornton’s decision to rely heavily on JGI’s delivery receipts when auditing the company’s prepaid inventory. More generally, compare and contrast the validity of audit evidence yielded by internally prepared versus externally prepared client documents.
Answer to relevant QuestionsDescribe the general nature and purpose of a “walk- through” audit procedure. Are such tests required by professional auditing standards? Sullivan identified the 1997 Golden Bear audit as a “high- risk” engagement. How do an audit engagement team’s responsibilities differ, if at all, on a high- risk engagement compared with a “normal” engagement? ...Is it appropriate for audit firms to sharply discount their professional fees for developmental stage companies? Why or why not? What problems, if any, may this practice pose for audit firms? Visit the websites of the major international accounting firms. Identify nontraditional services currently marketed by these firms. List several of these services and briefly describe their nature. Of the services you ...The SEC criticized Frank Sinopoli for not sending an “audit inquiry letter” to Geo Securities’ external legal counsel. Describe the nature and purpose of such a letter. Do you agree with the SEC that Sinopoli should ...
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