In an integrated audit the auditor must issue an opinion on ICFR effectiveness only at management’s report date which is typically at year end. Yet if ICFR is to be relied upon for the financial statement audit, the ICFR effectiveness must be tested for the entire year. Is long term debt an area for which the auditor of a public company might not rely on ICFR for the financial statement audit? Why or why not? How would the audit procedures be different under the different approaches to the audit?
Answer to relevant QuestionsDiscuss an auditor’s objectives in the audit of equity accounts. Describe appropriate analytical procedures an auditor may apply to equity accounts.Assume the role of a staff auditor assigned to audit the financing cycle for Pear Computer’s annual audit. During the course of the audit, you discover a footnote revealing that “for many assets and liabilities, we have ...Find the Auditing in Action in the chapter that presents the cases of debt covenant waivers at MGM and Pilgrim's Pride.Required:a. State why debt covenant violations are important to auditors? If the violation is "cured" so ...Discuss an auditor’s objectives in the audit of long-term liabilities. Describe appropriate analytical procedures an auditor may apply to long-term liabilities.What are the primary audit concerns for debt and debt-related account balances and disclosures?
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