You are reviewing the work undertaken by an auditing graduate who has been asked to assist in
Question:
You are reviewing the work undertaken by an auditing graduate who has been asked to assist in the planning of the audit of Tulsa Ltd.
The audit graduate has observed that "an assessment of the cash flow statement has indicated that management has been very efficient in their use of assets to generate cash flows in the current reporting period? As a result, the shareholders will be very happy that the performance of the entity will see the share price likely rise in the next reporting period making it very easy to establish the entity is a going concern as per ASA570".
Required:
Comment on the statement made by the audit graduate and whether you agree with their assessment.
Core Concepts Of Accounting Information Systems
ISBN: 9780470507025
11th Edition
Authors: Nancy A. Bagranoff, Mark G. Simkin, Carolyn Strand Norman