For each of the following independent cases identify: -Key audit matters (Auditors main Concerns). -Effects on the
Question:
For each of the following independent cases identify:
-Key audit matters (Auditor’s main Concerns).
-Effects on the auditor’s procedures, & Auditor’s appropriate responses.
-Effects on the auditor’s opinion.
You are expected to make appropriate:
assumptions, explanations & Justifications
1-Due to Covid 19 Circumstances, the client “Auditee” Suffer from a major decline on sales for the current year.
2- The balance of Accounts Receivable for current year is substantially higher than the balance of previous years.
3- The auditor discovers client’s tax evasion.
4- The auditor was not able to confirm the balance of a major vendor of the client due to judicial dispute between the client and the vendor.
5- A fraudulent act was committed by an employee of the client.
6- The Client’s Internal Control is ineffective.
7- Management refused to write down the ending inventory as asked by the auditor.
Managerial Accounting
ISBN: 978-0077826482
3rd edition
Authors: Stacey Whitecotton, Robert Libby, Fred Phillips