ACC 492 Week 4 Discussion Questions Study Guide

- The successor should review previous audits in order to whether problems exist that may impact the successor’s acceptance of the audit. Also, the successor should review previous audits in order to have confidence in the current/past figures presented on the client’s financial

An audit senior leads client audit engagements, which include planning, executing, directing, and completing the audit of the financial statements. The following are some of the professional roles of an audit senior on an engagement:

* From the e-Activity, choose one (1) of the eight (8) steps in the Clarified Auditing Standards–Learning and Implementation Plan. Based on the step you have chosen, analyze support for the action plan proposed, and make at least two (2) recommendations that would improve support of the action plan.

Q1. What is the link between audit risk and engagement risk? How does the audit risk model allow the auditor to deal with these risks in the most cost effective manner?

4. The final stage is the Audit Report. This is when all of the above come together to create the report. This report will list any recommendations that the auditors feel are areas in need of changes. In regard to Smackey’s, the auditors would recommend that Kim have more interaction with Henry. She needs to know more about what is happening at the loading dock. Kim needs a firsthand look at the loading dock and the paperwork. They would address the fact that Jillian puts too much trust in her sales team and is unaware of actual projections. Because of her lack of accounting knowledge, she has allowed

Assuming that the end result is an unqualified audit report, outline the primary responsibilities of the audit firm after it issues the report in question.

There are four things that an auditor needs to assess prior to performing an audit:

The only aspect of an audit report that I was aware of is the inclusion of the four financial statements – statement of cash flows, balance sheet, income statement, and statement of retained earnings. It is the auditor’s job to express an opinion on the financial statements based on the review I did not know all of the detail that a report entails. I originally thought only the statements were given with no explanation. However, it is comprised of notes to financial statements to supplement the analysis, which includes endowment funds summary, income tax exemption information, recommendations, and the independent auditor’s report which outlines management’s responsibility as well as the auditors, their opinion, and report on summarized comparative

4. Discuss the scope and nature of an auditor’s responsibilities during a review of client’s quarterly financial statements.

According to the Public Company Accounting Oversight Board (PCAOB), The primary objective and responsibilities of auditor is to express an opinion on the fairness with which all financial statement including all of its (material aspects, financial position, the result of the company operation and its overall level of cash flows) AU Suction 110. Thus, what this means is that auditor must be fully independent and must be fully able and willing to apply professional judgment as it relates to the audit engagement under consideration.

This title consists of 9 sections that instruct in the behavior of auditing firms and establish guidelines for external auditor independence. It also sets restrictions for clients outside of auditing boundaries and requirements for audit partner rotation.

List the four factors auditors should consider when evaluating the results of confirmation procedures. Also, what are three of the characteristics of a reliable confirmation? (For this and other questions, you may which to refer relevant auditing standards).

It is important to realize that the work as an auditor has been created in this world in order to give a fair and view on audited financial statements. A layman who wanted to make an investment will invest based on what auditor said in his report. Thus, if something bad happen in the company later, the reliability of the auditor is the first to be questioned.

The mission realization : the auditor is then going to define the reference table of the audit, in particular by mobilizing standards, norms, codes of conduct and procedures (internal or external), conventions or international recommendations, etc. and to draft and make share the guide of audit before the realization of his mission. During the audit the auditor will regroup many information with different tools (observation, interviews, questionnaires, etc)

A report of work done during the year and significant issues addressed including in respect of review of financial reports and internal controls.