When the current auditors make reference to the work of the component auditors, does this result in expression of a qualified opinion? Explain.
Answer to relevant QuestionsWade Corporation has been your audit client for several years. At the beginning of the current year, the company changed its method of inventory valuation from average cost to last in, first out (LIFO). The change, which had ...Comment on the accuracy of the following statement: “Since both significant deficiencies and material weaknesses must be reported to the audit committee, for practical purposes, there is no distinction between the two.”Provide an example of a situation in which the performance of substantive procedures for the financial statement audit might affect the internal control audit.Bill Jensen, a staff member of Zhan & Co., CPAs, has given you the following list of what he refers to as “internal control deficiencies” for the Zabling Co. audit and has asked you to review each point and make certain ...A client operates out of 25 locations. Must the CPA perform tests related to internal control at each of these locations?
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