Professional auditing standards identify the principal “management assertions” that underlie a set of financial statements. What were the key assertions that Arthur Young should have attempted to substantiate for the Hidden Valley transaction? What procedures should Arthur Young have used for this purpose, and what types of evidence should have been collected?
Answer to relevant QuestionsDo you believe that Jack Atchison’s close relationship with Lincoln and Charles Keating prior to his leaving Arthur Young was proper? Why or why not? After joining Lincoln’s parent company, ACC, should Atchison have ...The retail consumer electronics industry was undergoing rapid and dramatic changes during the 1980s. Discuss how changes in an audit client’s industry should affect audit planning decisions. Relate this discussion to Crazy ...What is the purpose of predecessor–successor auditor communications? Which party, the predecessor or successor auditor, has the responsibility for initiating these communications? Briefly summarize the information that a ...What potential consequences do frequent changes in auditors have for the quality of a given entity’s independent audits? Identify professional standards or other rules and regulations that are intended to discourage ...Mortgage-backed securities (MBS) produced by New Century and other major subprime lenders were a focal point of attention during the recent financial crisis. Many parties maintain that the mark-to-market rule for investments ...
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