You have accepted the engagement of auditing the financial statements of the C. Reis Company, a small

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You have accepted the engagement of auditing the financial statements of the C. Reis Company, a small manufacturing firm that has been your auditee for several years. Because you were busy writing the report for another engagement, you sent a staff accountant to begin the audit, with the suggestion that she start with the accounts receivable. Using the prior year’s working papers as a guide, the auditor prepared a trial balance of the accounts, aged them, prepared and mailed positive confirmation requests, examined underlying support for charges and credits, and performed other work she considered necessary to obtain evidence about the validity and collectability of the receivables. At the conclusion of her work, you reviewed the working papers she prepared and found she had carefully followed the prior year’s working papers.


Required:

The opinion rendered by a PA states that the audit was made in accordance with generally accepted auditing standards. List the three generally accepted standards of field work. Relate them to the above illustration by indicating how they were fulfilled or, if appropriate, how they were not fulfilled.


Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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Related Book For  answer-question

Auditing An International Approach

ISBN: 978-0071051415

6th edition

Authors: Wally J. Smieliauskas, Kathryn Bewley

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