Chapter 1 HW Solutions

Chapter 1 HW Solutions - Ch.1 HW assignment solutions...

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Ch.1 HW assignment solutions (suggested solutions, due to “gray” area nature of auditing homework questions) 1.51 Auditor as Guarantor . The neighbor appears to be uninformed on the following points: According to auditors’ dogma, Price Waterhouse did not prepare the Dodge Corporation financial statements, and no auditor prepares a company’s statements. Inform your neighbor that Dodge management is primarily responsible for preparing the financial statements and deciding upon the appropriate accounting principles. An unqualified opinion does not mean an investment is safe . Tell your neighbor that the financial statements are history . The value of his investment depends on future events, including the many factors that affect market prices. Tell him the opinion only means that the statements conform to GAAP (and you can add that the auditor knows of no material fraud or error). 1.52 Identification of Audits and Auditors The responses to this matching type of question are ambiguous. The engagement examples are real
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This note was uploaded on 04/01/2011 for the course ACCT 413 taught by Professor Kickham during the Spring '11 term at Saginaw Valley.

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Chapter 1 HW Solutions - Ch.1 HW assignment solutions...

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