Week 3 - individual Assignments - David Trejo

Week 3 - individual Assignments - David Trejo - Week 3...

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Week 3 – Individual Assignments – David Trejo 1 Ch. 5: Comprehensive Questions 5-30 – Assertions 5-30 (Assertions) In planning the audit of a client’s financial statements, an auditor identified the following issues that need audit attention. 1. The allowance for doubtful accounts is fairly presented in amount. Presentation and Disclosure. 2. All accounts payable owed as of the balance sheet date are included in the financial statements. Completeness. All accounts and their transactions which should be included in the financial statements have been included. 3. All purchase returns recorded in the general ledger are valid. Rights and Obligations. The rights of the organization and its liabilities are the obligation of the organization on the given date. 4. There is a risk that purchases made in the last week of the month might be recorded in the following period. Presentation and disclosure. 5. The client may have factored accounts receivable. Rights and Obligations. 6. The client has used special-purpose entities to finance a building. Neither the building nor the debt is included in the financial statements. Completeness. 7. A retail client values its inventory using the retail method of accounting. Valuation. 8. A construction client uses the percentage of completion method for recognizing revenues. Valuation. 9. A client has a defined benefit pension plan and does not have competent employees to write footnote disclosures. Presentation and Disclosure. 10. A client acquired a subsidiary company and paid a high amount of goodwill when the stock market, and resulting values, were at all-time highs. Valuation.
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Week 3 - individual Assignments - David Trejo - Week 3...

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