Question: When a CPA has accepted an engagement from a new client who is a manufacturer, it is customary for the CPA to tour the client's

When a CPA has accepted an engagement from a new client who is a manufacturer, it is customary for the CPA to tour the client's plant facilities. Discuss the ways in which the CPA's observations made during the course of the plant tour will be of help in planning and conducting the audit.

Step by Step Solution

★★★★★

3.54 Rating (171 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

During the course of the plant tour the CPA will obtain a perspective of the clients business which will contribute to the auditors understanding of the entity and its environment Remember that an imp... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

185-B-A-A-P (219).docx

120 KBs Word File

Students Have Also Explored These Related Auditing Questions!

When a PA has accepted an engagement from a new client that is a manufacturer, it is customary for the PA to tour the clients plant facilities. Discuss the ways in which the PAs observations made...

When an auditor has accepted an engagement from a new client who is a manufacturer, it is customary for the auditor to tour the clients plant facilities. Discuss the ways in which the auditors...

Discuss various ways in which observations can be documented while performing field research. Post your comments.

library, or another credible, i . . e . , . , academic source. 1 . 1 . Discuss the similarities and differences between evidence in a legal case and evidence in an audit of financial statements. 2 ....

Client Facilities Tour. When an auditor has accepted an engagement from a new client who is a manufacturer, it is customary for the auditor to tour the client's plant facilities. Discuss the ways in...

Assume that an auditor has accepted an engagement from a new client, a manufacturer of textile materials. Discuss the ways in which the auditors observations made during the course of a brief tour of...

** Its a practice test that prof gave us for the preparation so its not homework or anything like that 1. Which of the following is a characteristic of monetary unit sampling (MUS)? A) MUS is a form...

Question 26 1 pts When considering the use of management's written representations as audit evidence about the completeness assertion, an auditor should understand that such representations...

The Nernst equation can be applied to half reactions. Calculate the reduction potential at 25oC of each of the following half cells. a. Cu/ Cu2+ (0.10 M) (The half reaction is Cu2+ + 2e n Cu.) b. Cu/...

Two air-filled, parallel-plate capacitors are to be connected to a 10 V battery, first individually, then in series, and then in parallel. In those arrangements, the energy stored in the capacitors...

CH ALLENGE TRAP and bone resorption. In Exercise 7.119 (page 482) we looked at the distribution of tartrate resistant acid phosphatase (TRAP), a biomarker for bone resorption. Table 10.7 gives values...

A firm wants to reach two types of customers: House holds having Rs 5 lakhs or more of annual family income and those having income of less than Rs 5 lakhs. The first category purchases twice as much...

7. Productivity can be mathematically expressed as: (a) Cost/Input (c) Input + Output (b) Input/Output (d) Output/Input

8. Which of the following expression is used to determine productivity and production? (a) Ratio, Volume (b) Percentage, Ratio (c) Rupees, Volume (d) Ratio, Rupees

9. Which is not the objective for measuring productivity? (a) To study performance of a system overtime (b) To have relative comparison of different systems for a given level (c) To eliminate waste...

PLEASE ANSWER THE BLANKS, ALL THE ANSWERS I RECIEVED WERE INCORRECT We are evaluating a project that costs $832,000. has an eight-year life, and has no salvage value. Assume that depreciation is...

Joe entered into partnership with two others in the establishment of a real estate sales agency. The other two, Sam and Harry, had considerable experience in the real estate business but no money....

pls help asap! show calculations 10 points Save Answer Consider a four-year project with the following information: initial fixed asset investment = $375,000; straight-line depreciation to zero over...