Essay Week 8 Auditing II

Words: 1065
Pages: 5
Open Document
Chapter 7
Case – 7-54
"Going Concern" Please respond to the following:
From the e-Activity, analyze the auditor’s responsibility to determine if a company can continue as a going concern. From your analysis, propose at least two (2) key factors that the auditor should consider when determining an entity’s ability to continue as a going concern. Provide a rationale to support your proposal.

SAS 59, The Auditor’s Consideration of an Entity’s Ability to Continue as a Going Concern (AICPA, Professional Standards, vol. 1, AU section 341) - The auditor is now required to document the conditions that substantiated the substantial doubt that the entity would continue to exist, elements of management’s plans that appear to be particularly …show more content…
Provide a rationale to support your response.
In the Inquiry of a Client's Lawyer Concerning Litigation, Claims, and Assessments, the date by which the lawyer's response should be sent to the auditor. In the CR Brown inquiry the date is not shown. Also, the letter should request the lawyer to specify in his response the latest date covered by his review (the "effective date"). It should be recognized that, to adequately respond to an audit inquiry letter, lawyers will ordinarily employ some internal review procedures which will be facilitated by specifying the earliest acceptable effective date of the response and the latest date by which it should be sent to the auditor. Ordinarily, a two-week period should be allowed between the specified effective date of the lawyer's response and the latest date by which the response should be sent to the auditor. Clearly stating the relevant dates in the letter and specifying these dates to the lawyer in a timely manner will allow the responding lawyer an adequate amount of time to complete his review procedures and assist the auditor in coordinating the timing of the completion of his field work with the latest date covered by the lawyer's review. http://pcaobus.org/Standards/Auditing/Pages/AU337.aspx. Shirley

There are people out there that argue that an auditor determining and reporting on a going concern can become a self-fulfilling prophecy. Do you agree with this? Why or why not? Class?
Professor and Class,
The fear is
Show More

Related Documents: Essay Week 8 Auditing II

Essay on Financial Statement Auditing

ACCT 473-FINANCIAL STATEMENT AUDITING LEVENTHAL SCHOOL OF ACCOUNTING UNIVERSITY OF SOUTHERN CALIFORNIA SPRING 2006 Sec. Time Location 14135D 10:00-11:50 am TTH HOH 303 14136D 12:00-1:50 am TTH HOH 303 14137D 2:00-3:50 pm F THH 102 I. GENERAL INFORMATION Faculty: Professor Chrislynn Freed, CPA Office Location: ACC 229 Office Hours: MW 12:15-2:15PM; TTH 2-3:00 PM Office Phone: (213) 740-4867 Email Address: cfreed@marshall.usc.edu USC Emergencies: (213) 740-4321 USC Emergency Information…

Words 3705 - Pages 15

Essay on Executive Summary for Apple, Inc.

Steven Wozniak and Steve Jobs, both college dropouts. In 1976, Wozniak and Jobs created the Apple I computer which did not have a keyboard or power supply for a computer hobbyist club. Later that summer Wozniak started his development of the Apple II, which…

Words 1211 - Pages 5

Scientific Method and Cs Essay

551 – Advanced Auditing Spring 2009 Instructor: D. Scott Showalter, CPA Office: 3170 Nelson Hall Office Phone: 513-0526 E-mail: scott_showalter@ncsu.edu Class Hours: Tues and Thurs: 1:30-2:45pm (Section 1) and 3:00-4:15pm (Section 2) Classroom: Nelson 1140 Office Hours: Tues and Thurs: 9:00-10:00am and 12:00-1:00pm Also available by appointment. (I am generally around MWF, call ahead to confirm) 1. Course Objectives This course is an advanced course in auditing. The course materials…

Words 3434 - Pages 14

Questions On Auditing

FA363 Auditing Module Answers (May/June 11) Question 1 (a) Fundamental accounting concept that the accounts of the company are assumed to be prepared on a going concern basis This means that the business will carry on its activities in the same way ie there will be continued sales, supplies and sufficient cash to base the business Foreseeable future vague but usually considered to be between three and five years If the company is not a going concern then the directors have a responsibility…

Words 4215 - Pages 17

aCC403 Ch 4 wk 2 Essay

Amy Hemphill Ch 3 & 4, week 2 Acct 403 3-25 (a-c) The following questions concern audit reports other than unqualified audit reports with standard wording. Chose the best reponse. A) The annual audit of Midwestern Manufacturing revealed that sales were accidentally being recorded as revenue when the goods were ordered, instead of when they were shipped. Assuming the amount in question is material and the client is unwilling to correct the error, the CPA should issue: 1. An unqualified opinion or…

Words 2587 - Pages 11

Essay about Week 7 EL Value Measurement And Intermediaries

Atkinson 232, 416.736.2100 eytan@yorku.ca x. 22878, Updates • Exam feedback in Week 8 • Makeup exam for ADMS2511 students: –Sunday, October 26th, 11am-12:30pm –If you missed the midterm due to illness you MUST submit valid medical documentation to ATK 282 by this Friday October 24 • No class next week – Co-curricular days Oct 29-Nov 2 Updates • Group presentations/debates (20% of course grade) start in week 9 (November 13) –Format: • For side: 6 minutes opening arguments • Against side: 6…

Words 2289 - Pages 10

Essay on ACCT 3511

Chapter 1 & 2 Concept Solutions-Fin.Accting Standards-Professor Marco J. Malandra, CPA (Kieso 13th Edition Page / Kieso 14th Edition if Page is different) mjm 8/28/11 Chapter 1: Financial Accounting (FA), Financial Statements (FS) & Accounting Standards 1. What fields of accounting are geared to external vs internal users? Who are these users? External Financial accounting (FA)  creditors, investors Internal Managerial  Co. managers/executives…

Words 2230 - Pages 9

Tutorial Questions Essay

Business and Corporations Law ACCG614 Workbook Includes all seminar questions highly recommended you print this document 1 page per page Semester 1, 2014 Please note that week 1 topic area is discussed in week 2 and so on. Week 2 (Week commencing Monday 10 March) Topic Area 1 An Introduction to the Australian Legal and Political Environment Knowledge test Questions: Legal System 1. What is the legal tradition on which the Australian legal system is based? __________________________________________________________________________________…

Words 6802 - Pages 28

Forensic Accounting Syllbus Essay examples

SYLLABUS – ACNT 1305 Forensic Accounting Distance Education Instructor: Dr. Marina Grau Prerequisite: ACCT 2302 (Principles of Accounting II) Course Description: This course is intended to help students understand the role of the Forensic Accountant. Upon completion of this course the students will learn special skills in accounting, auditing, finance, quantitative methods, certain areas of the law, research, and investigative skills to collect, analyze, and evaluate evidential matter…

Words 1370 - Pages 6

Essay about Media Violence

Fraud Detection and Forensic Accounting ¨ Fatma Ulucan Ozkul and Ayse Pamukcu ¸ ¸ 2 2.1 Definitions of Fraud A quick search for the meaning of fraud in the dictionary states that fraud is “deceit, impersonation with intent to deceive, criminal deception done with the intention of gaining an advantage.” The Institute of Turkish History explains the word fraud as “a deceptive trick, scam, game, artifice, cabal which is committed to cheat, mislead someone” and “contributing something useless…

Words 9629 - Pages 39