Question 1

Explain how the wording of a standard audit report varies between statements prepared using a fair presentation framework and statements prepared using a compliance framework.

Accepted Answer

The answer of Explain how the wording of a standard...

Question 2

You are auditing Green Corporation for the calendar year 20X2.Among other items related to the audit,Green is being sued for personal injury resulting from the malfunction of one of its products.Sue Ewe filed the lawsuit 8 years earlier in September 20W4.The officers of the company and its outside legal counsel estimate that the loss from the suit will be approximately $250,000.This amount has been accrued and properly disclosed in the footnotes of the financial statements.You have no reason to believe that the estimate is wrong.You completed your audit and dated your report March 2,20X3.The financial statements were issued on March 14,20X3.The trial was in progress at that date.On March 20,20X3,you read in a national business periodical that the jury in the trial awarded Sue Ewe $1.5 million.
Required:
Discuss the nature of these events and what responsibility the auditor has,if any,regarding the news of March 20.

Accepted Answer

The answer of You are auditing Green Corporation for the...

Question 3

What is "dual dating" in the audit report?

Accepted Answer

The answer of What is "dual dating" in the audit...

Question 4

What are the three categories of uncorrected misstatements?

Accepted Answer

The answer of What are the three categories of uncorrected...

Question 5

What is an Emphasis of Matter (EOM)paragraph?

Accepted Answer

The answer of What is an Emphasis of Matter (EOM)paragraph?...

Question 6

Briefly explain the auditor's responsibility for the subsequent discovery of facts that occurred between the date of the financial statements and the date of the auditor's report.

Accepted Answer

The answer of Briefly explain the auditor's responsibility for the...

Question 7

What is an Other Matter (OM)paragraph?

Accepted Answer

The answer of What is an Other Matter (OM)paragraph?...

Question 8

What are the various causes of misstatements? Are they intentional?

Accepted Answer

The answer of What are the various causes of misstatements?...

Quiz 16: Applying Professional Judgment to Form the Audit Opinion and Issue the Audit Report