1.Apple Music Insurance Company has cash reports that the Management reviews on a monthly basis. Also, it employs forecasting to project cash requirements for the next quarter and even makes loss adjustments every year. Was there effective control of cash? 

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2. Google Insurance Company maintains liquidity reports and performs recertification of all bank accounts on an annual basis. Is this an effective control from Auditor's perspective? 

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3. Based on the assessment of the Board of Directors of Windows Insurance Company, it was concluded that the amount of transactions with its related party Microsoft Company is immaterial; thus, they decided not to disclose the same in the Financial Statement. Is this action correct?  

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4. In the course of the Audit, the Auditor noted that premiums received by Black Insurance Company were not reported. Thus, the auditor called for a meeting with Audit Committee to explain the inappropriate accounting treatment that may result in tax violation. The Audit Committee, having an oversight function, cited that since the auditor's fee is reduced by 100,000, the impact on taxation is no longer included in the Audit. The Audit Committee also had its response indicated in the minutes of the meeting. Is the Audit Committee's argument acceptable?
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5. The auditor of White Company noted per Insurance Company Report of Examination that White Company's Independent Director committed material fraud. In order to verify such information and applying skepticism, the auditor asked the Accounting Supervisor, "What are the details of fraud committed by White's Insurance Company's independent director"? Was this action of the Auditor appropriate? 

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Answer rating: 100% (QA)

1 It appears that Apple Music Insurance Company has effective control of cash since it regularly rev... View the full answer