Describe the pre-2011 requirements of Canadian GAAS for reporting for contingencies and uncertainties. Identify the pros and cons of the current approach, contrasting these with the pros and cons of the “subject to” opinions that were used in Canada prior to 1980.
Answer to relevant QuestionsCurrent Canadian GAAS through 2010 did not permit the auditor to refer to a going-concern uncertainty in the audit report when the uncertainty was properly disclosed in the financial statement notes. Required: a. Describe ...Kite Corporation’s auditor, PA1, formed the opinion that Kite should accrue for estimated future costs to clean up an environmental problem on one of Kite’s properties in its 20X3 financial statements. Kite requested a ...High Roller Inc. needs an audit and has asked two different audit firms to bid on the engagement. Both auditors assess the engagement risk to be high. Auditor A declines the engagement, but Auditor B agrees to accept it. Why ...What official documents and authorizations should an auditor read when performing preliminary analytical procedures? What issues arise if an auditor realizes part way through the audit that a smaller materiality level is appropriate?
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