Acc/546 Week 1 Assignment

The main purpose of the financial statements is to provide creditors and investors with a summary of a business financial activity. All statements are prepared at certain times throughout the year. The balance sheet reports liabilities, assets, and owner equity of the company. The income statement matches incurred expenses during a period of generated revenue. The statement of retained earnings reports retained earnings from net loss and net incomes from

This course is the first in a two-part series that deals with auditing a company 's financial reports, internal controls, and

Read the auditor’s report included in the annual report of the company and explain its purpose. Identify the name of the auditing firm.

Compare the primary auditor objectives in auditing historical financial statements to auditing internal controls over financial reporting. Identify at least two (2) objectives that are the most significant in reducing the risk of reporting errors or misstatements in financial statements. Provide a rationale for your response.

4. Total conversion cost = $128,000 + $16,000 + $9,000 + $64,000 + $41,000 + $35,000 + $46,000 = $339,000

Too many disposals of small groups of assets that are recurring in nature qualify for discontinued operations under prior GAAP. This caused financial statements to be less decision useful for users. Additionally, the guidance on discontinued operations resulted in higher costs for preparers because it can be complex and difficult to apply. The FASB issued ASU 2014-08 to address those problems by changing the criteria for reporting discontinued operations, while simultaneously enhancing convergence with the International Accounting Standard Board’s reporting requirements for discontinued operations.

a. Describe the purpose of analytical procedures performed in the planning stage of the audit.

Dq1 What are the steps that are required for an auditor to finalize the audit? Which steps are the most crucial to the outcome of the audit? How will these steps affect the final audit decision?

In preparing for the audit all aspects of a company need to be reviewed. For the preparation of the audit several things must be considered as define in the following pages.

During the planning phase of the audit, you met with Pinnacle’s management team and performed other planning activities. You encounter the following situations that you believe may be relevant to the audit:

Ethics are the “standards of conduct that indicate how one should behave based on moral duties and virtues.”

3. What are the primary objectives an audit team hopes to accomplish by preparing a proper set of audit workpapers?

1. Discuss three management events that occurred that should have been a “red flag” to the auditing firm.

2. Assume that an auditor has accepted an engagement from a new client, a manufacturer of textile materials. Discuss the ways in which the auditor’s observations made during the course of a brief tour of the client’s manufacturing plant, in the initial stages of the audit,

The auditor’s responsibilities are to audit annual financial statements and internal controls over financial reporting, and reports from the 10-Q quarterly reports. The auditor must also advice on new accounting pronouncements, and consolidating financial statements. (Intel Proxy Statement 2011, 48)