ACCT 444 Week 7 Homework
Week 7 Homework
Chapter 3: 3-27
1. Identify and explain any items included in “Other Information” that need not be part of the auditor’s report.
2. Explain the deficiencies in Patel’s report as drafted.
Chapter 3: 3-32
Identify deficiencies in the staff accountant’s tentative report that constitute departures from the generally accepted standards of reporting.
Chapter 24: 24-26
1. Distinguish between contingent liabilities and commitments and explain why both are important in an audit.
2. Describe how Johnson’s testing in phases I-III of the audit of notes payable might help her obtain evidence about the four presentation and disclosure objectives.
3. Identify three useful audit procedures for uncovering contingent liabilities that Johnson will likely perform in the normal conduct of the audit, even if she had no responsibility for uncovering contingencies.
4. Identify three other procedures Johnson is likely to perform specifically for the purpose of identifying undisclosed contingencies.
Chapter 24: 24-28
1. Evaluate Little’s approach to sending the attorney letters and her follow-up on the responses.
2. What should Little do about each of the letters?
Chapter 25: 25-22
1. Beyond inquiries and analytical procedures, what are the accountant’s responsibilities in performing review service engagements?
2. Describe what you should do in each of the preceding situations, assuming each one is material.