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Unformatted text preview: Arayawna Moore @02585360 Auditing I 09/20/10 CHAPTER 1 1-14 A. 3 B. 2 C. 2 D. 3 1-15 A. 2 B. 3 C. 4 D. 3 1-21 1) IRS, compliance audit 2) GAO, operational audit 3) CPA, operational audit 4) Internal, financial statement audit 5) GAO, operational audit 6) CPA, financial statement audit 7) GAO, financial statement audit 8) IRS, compliance audit 9) Internal, financial statement audit 10) IRS, compliance audit 11) Internal, financial statement audit 12) GAO, compliance audit 1-22 A. The conglomerate should engage to conduct the operational audit with a CPA. B. Major problems auditors likely encounter in conducting the investigation and writing the report is determining if the effectiveness and efficiency of many operations meets the created criteria determined by the auditor. Also, auditors may encounter issues with their client failing to disclose certain important information; causing misrepresentation in managements financial statements. CHAPTER 2 2-16 A. 1 B. 2 C. 3 D. 3 2-17 A. 2 B. 1 C. 2 D. 1 2-21 1) Adequate training and proficiency; Holmes violated because he hired two accounting students to conduct audit. 2) Independence in mental attitude; Holmes violated because he didnt conduct the audit and accepted money from the client. 3) Due Professional Care; Holmes violated because he hired those accounting students to do professional work, and he didnt conduct the audit. 4) Proper Planning and Supervision; Holmes violated because he didnt notice a lack in the footnotes and didnt properly supervise/monitor the two students he hired. 5) Sufficient understanding of the entity as a whole; Holmes violated because he didnt provide the hired students with a sufficient understanding of the clients internal control; which could affect the result of any audit....
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This note was uploaded on 12/05/2010 for the course AUDITING 305 taught by Professor Ross during the Fall '10 term at Howard.
- Fall '10