Variable interest entities were discussed in the chapter, including an Auditing in Action Exhibit for Ford Motor Company. Why does consolidating the VIEs for which Ford Motor Company owns or controls less than a 50% interest seem to be an accounting treatment that differs from the typical treatment for consolidations? What would the audit procedures be for the consolidation of these VIEs? About which assertions would the auditor be concerned in addition to the proper accounting of the VIEs selected by management for consolidation?
Answer to relevant QuestionsKyle is a staff auditor on the annual audit of Goodhue & Company, a major electronics retailer. In examining Goodhue & Company’s accounts, he found an account entitled “restricted cash.”Required:a. What is included in ...Veronica is an experienced staff auditor in charge of performing tests over equity accounts. According to the audit program, Veronica is supposed to utilize analytical procedures over the equity balances using various ...Bartel and James formed a corporation called Financial Magic Services, Inc. In the corporation, Stan Bartel is a CPA (audits and tax services) and Morgan James is a casualty insurance underwriter. Bartel accepted an audit ...You have been engaged to audit the financial statements of Quinn Corporation for the year ended December 31, 2010.During the year Quinn obtained a long-term loan from a local bank. The finance terms are as follows:1. The ...What is the difference between a defined benefit and a defined contribution pension plan? What does it mean when a plan is “funded”?
Post your question