Two assistant auditors were assigned by the auditor-in-charge to the verification of long-term liabilities. Sometime later, they reported to the auditor-in-charge that they had determined that all long-term liabilities were properly recorded and that all recorded long-term liabilities were genuine obligations. Does this determination constitute a sufficient examination of long-term liabilities? Explain.
Answer to relevant QuestionsCompare the auditors’ examination of owners’ equity with their work on assets and current liabilities. Among other factors to be considered are the relative amounts of time involved and the character of the transactions ...Identify three revenue accounts that are verified during the audit of balance sheet accounts; also, identify the related balance sheet accounts.List the audit procedures that should be completed near the date of the audit report.You are the audit manager in the audit of the financial statements of Midwest Grain Storage, Inc., a new client. The company’s records show that, as of the balance sheet date, approximately 15 million bushels of various ...In connection with her audit of the financial statements of Flowmeter, Inc., for the year ended December 31, 20X3, Joan Hirsch, CPA, is aware that certain events and transactions that have taken place after December 31, ...
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