Practice Problems Ch. 16 (ACCT-422)

Practice Problems Ch. 16 (ACCT-422) - willing to send the...

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Solutions to Chapter 16 Practice Problems 16-20 a. (4) b. (4) c. (2) 16-21 a. (4) b. (2) c. (2) 16-22 a. (2) b. (1) 16-30 a. Yes, it is acceptable for the controller to review the list of accounts the auditor intends to confirm. The confirmations will be sent to the company's customers, and the auditor must be sensitive to the client's concern with the treatment of their customers. At the same time, if the client refuses permission to confirm receivables, the auditor must consider the effect on the audit opinion. If the restriction is material, a qualified or disclaimer of opinion may be needed. b. The auditor should be willing to perform special procedures that the client requests if the client is in agreement that these procedures may not necessarily be considered within the scope of the auditor's engagement. In the case of the 20 additional confirmations which the controller requested that the auditor send, the auditor should be
Image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: willing to send the confirmations; however, these confirmations should not be considered in the evaluation of the results of the accounts receivable confirmations sent by the auditor. c. If the auditor complies with the controller's request to eliminate six of the accounts from the confirmation tests, the auditor must perform alternative procedures on the six accounts and decide whether or not this omission is significant to the scope of the audit. If the auditor believes that the impact of not confirming these accounts is material, he or she must qualify the scope and opinion paragraphs of the auditor's report to indicate the restriction of scope imposed by the client. If the auditor believes that the impact of omitting the six accounts from testing is highly material, a disclaimer of opinion is appropriate....
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern