Auditing Small Entities

Auditing Small Entities - Auditing Small Entities A Change...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Auditing Small Entities
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
It is October 2009 and Susan Thuro-Checker is planning the audit of her client ABC Industries Ltd. for its December 31, 2009 year end. ABC, an owner-managed company with two employees in the accounting department, last year had annual revenue of $7.5 million. During the year, ABC acquired a controlling interest in DEF Ltd. and Thuro-Checker’s firm has been asked to undertake a separate audit of DEF, which last year was audited by another CA firm. She has always considered herself to be a thorough and effective audit planner and asks herself, “What do I have to do that is different from past years?” 1. Identify characteristics which define or are unique to a small entity. Are they a control weakness or improve internal controls? 2. What are some of the challenges in auditing small entities? 3. Is engagement risk high or low for small entity engagements? Provide support for your assessment. 4. Identify some factors that may motivate ABC management (or small entity management in general) to materially misstate the financial statements? 5.
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 12

Auditing Small Entities - Auditing Small Entities A Change...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online