Questions and Answers of Auditing The Art And Science Of Assurance

Explain why criteria are so important with respect to assurance engagements that involve non-financial information.
As mentioned in Auditing in Action 3-2, Ernst & Young recently paid the largest settlement in a Canadian class action suit related to its audits of Sino-Forest. It subsequently paid an $8 million
Recently, standard setters revised the Auditor’s Report to provide more detail on management’s and auditors’ responsibilities related to going concern disclosures. Refer to Figure 3-3 and
The following general ledger accounts are included in the trial balance for an audit client, Jones Wholesale Stationery Store.REQUIREDa. Identify the accounts in the trial balance that are likely to
Linus Peabody is a junior auditor with the accounting firm Dig and Deep, LLP. He recently discovered through a casual conversation with Betty Boone, another audit junior with Dig and Deep, that one
You are an audit manager at Tick and Bop LLP and are planning the audit of Lotusbank, a digital bank that provides a range of financial services including mortgages. Of all the Canadian digital
Discuss why a number of Chartered Professional Accountant (CPA) firms have willingly chosen to settle lawsuits out of court. What are the implications to the profession from such actions?
Read the following transcript between Mitch and you (AJ).AJ: Hey Mitch, I didn’t know that you used to work for another public accounting firm before you started to work at BKK, LLP.MB: Yeah,
What is the role of the CPAB?
Below are some key facts about Hillsburg Hardware and Ben & James, the paint manufacturer, Hillsburg is considering purchasing.Hillsburg Hardware LimitedHillsburg Stores Ltd. began operations in
The following are two events that happened at Hillsburg during the audit period:• Hillsburg’s ONHAND system was hit by the WannaCry cyberattack, and the company did not have an external
The following independent scenarios describe auditor decisions made during an audit engagement.1. Chen Li worked on the audit of Diagnostic Imaging Services (DSI), which provides diagnostic imaging
What assertion is the auditor assessing when considering the following question: Do all recorded property, plant, and equipment exist at the balance sheet date?
Distinguish between the existence and completeness assertions. State the effect on the financial statements (overstatement or understatement) of a violation of each assertion with regard to accounts
The cost of equipment repairs incurred by a construction company is recorded in the incorrect accounting period. Which accounts and assertions are relevant for this situation?
What are relevant management assertions? Why are relevant assertions important to the audit process?
Distinguish between the responsibilities of management, of those in charge of governance, and of the auditor for the financial statements being audited.
The following is a conversation between you, audit junior, and Mitch Bray, the other junior assigned to the Hillsburg audit engagement.MB: Hey. Did you update your social media profiles?AJ: No, not
Robert Lewandowski, the owner of iEat Inc., a private company that designs and installs interactive computer display terminals in coffee shops and restaurants, recently switched auditors and hired
Donna, a public accountant, is approached by the owner of one of her clients, for whom she normally compiles monthly and annual financial statements, to perform an audit of the company’s
Helmut & Co., a public accounting firm, was the new auditor of Mountain Ltd., a private company in the farm equipment and supply business. In early February 2020, Helmut & Co. began the audit
Diane Harris, a PA, is the auditor of Fine Deal Furniture, Inc. In the course of her audit for the year ended December 31, 2020, she discovered that Fine Deal had serious going-concern problems.
Barbara Whitley had great expectations about her future as she sat at her graduation ceremony in May 2020. She was about to receive her Master of Accountancy degree, and the following week she would
Why is an auditor’s independence so essential?

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