Management applies accounting standards in the preparation of financial reports and auditors assess the fair application of
Question:
Management applies accounting standards in the preparation of financial reports and auditors assess the fair application of those accounting standards. During 2008 and 2009, several changes were made to the IFRSs, which affected the use of fair value for certain assets and liabilities.8 Required Discuss the implications for auditors of these accounting standard changes and the associated questioning of the use of fair values in financial accounting. In particular, you should address the following issues in your answer:
• How do auditors audit fair values?
• Would it be easier for auditors if financial reports contained more or less fair value accounting?
• Are there different implications for auditors when fair values are rising versus when they are falling?
Step by Step Answer:
Implications for Auditors of Accounting Standard Changes Affecting Fair Value Audit of Fair Values Challenges in Auditing Fair Values Fair value measurements involve a high level of estimation and jud...View the full answer
Auditing A Practical Approach
ISBN: 9780730364573
3rd Edition
Authors: Robyn Moroney, Fiona Campbell, Jane Hamilton
Students also viewed these Business questions
-
Management applies accounting standards in the preparation of financial statements, and auditors assess the fair application of those accounting standards. The current trend is to use fair value for...
-
At the ZZZZ Best Company What is the accounting issue(s) at the core of the problem? At the ZZZZ Best Company was the accounting principle followed correctly or misconstrued by the parties? Why or...
-
In the ZZZZ Best case, explain the kinds of evidence that the auditors gathered and how the auditors failed. just write one or two paragraph to support ZZZZ Best Case On May 19, 1987, a short article...
-
Fox Erasing has a system of internal control with the following procedures. Match the procedure to the corresponding internal control principle. Procedure Internal Control Principle A. Establish...
-
Woods Corporation expects to incur indirect overhead costs of $60,000 per month and direct manufacturing costs of $11 per unit. The expected production activity for the first four months of 2012 is...
-
Why is it acceptable to use a dichotomous predictor variable in a regression when it is not usually acceptable to use a categorical variable that has more than two values as a predictor in regression?
-
How do we determine the height of packing required for a concentrated absorber or stripper if \(\mathrm{H}_{\mathrm{G}}\) is not constant?
-
The following information has been gathered for a project: a. Draw the network diagram. b. Calculate the slack for each activity and determine the critical path. How long will the projecttake?...
-
Operations managers use decision-making models in organizational decision making. Virtually every decision-making model has an associated set of assumptions or conditions under which the model is...
-
Certain radial tires had useful lives of 35,200, 41,000, 44,700, 38,600, and 41,500 miles. Assuming that these data can be looked upon as a random sample from an exponential population, use the...
-
Why does an auditor compare remittance advices or lists of cash receipts with entries in the cash receipts transaction file and compare entries in the cash receipts transaction file with the...
-
Review your answers to the previous questions. Comment on the persuasiveness of evidence from each test. Explain any factors that would affect your assessment. Chan & Partners Chartered Accountants...
-
On January 2, 2013, Pilates Inc. paid $700,000 for all of the outstanding common stock of Spinning Company and dissolved Spinning Company. The carrying values for Spinning Company's assets and...
-
Consider the example problem we did in class where we found the bubble and dew point temperature of a mixture of butanes and pentanes at 1 atm pressure. Generate a plot of the bubble point...
-
If the alternator-to-engine drive ratio is 2.15 to 1, what rpm will the alternator have when the engine is idling at 300 rpm? Hint: Use a direct proportion. The alternator will have rpm when the...
-
For 8824 Department of the Treasury Internal Revenue Service Name shown on tax retur 2 3 Part I Information on the Like-Kind Exchange Note: Generally, only real property should be described on lines...
-
How would you recommend and gather informtion about the leada that come through website? How would you propose to score those website leads complete with atleast 5 componets and their associated...
-
Solve the multiple chemical reaction equilibrium the following set of independent reactions: CH4 + H2O CO + 3H2 reaction 1 CO + H2O CO2 + H2 reaction 2 at 800 K using
-
Having carried out the study of Exercise 15.34, the instructor decided to replicate the study the following year. The results obtained are shown in the table. Combining these results with those of...
-
Suppose that you could invest in the following projects but have only $30,000 to invest. How would you make your decision and which projects would you invest in? Project Cost $ 8,000 11,000 9,000...
-
The following situations involve Herb Standard, staff accountant with the regional accounting firm of Cash & Green: 1. The bookkeeper of Ethical Manufacturing Company resigned two months ago and has...
-
Part I: The common stock of Wilson, Inc. is owned by 10,000 stockholders who live in several states. Wilsons financial statements as of December 31, 2021, were audited by Doe & Co., CPAs, who...
-
Explain the importance of the risk assessment phase of a financial statement audit.
-
Sony of Japan produces DVD players and exports them to the United States . Last year the exchange rate was 130 / $ and Sony charged $ 150 per DVD player . Currently the spot exchange rate is 110 / $...
-
Hi, I have various models (train and test results) created out of Logistic regression, RF and LDA. How do I store the accuracy, precision, and recalls values into a dataframe ? Thanks, Bala
-
Estimate a logistic regression using "buyer" as the dependent variable and the following as predictor variables: last_purch dollars customer_type customer_sqft cab_franc cab_sauvignon malbec merlot...
Study smarter with the SolutionInn App