Michelle Mendell ACT401 Chapter 1 HW #1, 3, 8, 10, 14 1. With audit services, financial statements require assertion, they are highly structured, they follow GAAS and GAAP, and they are historical. An example of an audit service is a financial statement a
ProductNumber PK CK ProductName AK CK
The product name and the product number are candidate keys since the product name and the product
number are unique identifiers to the product.
Chapter 1 Homework Assignment
1. Chuck, a single taxpayer, earns $75,000 in taxable income and $10,000 in interest from an
investment in City of Heflin bonds. Using the 2015 U.S. tax rate schedule, how much federal tax
will he owe?
An assurance service is an independent professional service to improve the quality of
information for decision makers. An attestation service is a form of assurance service in which the CPA
firm issues a report about the reliability
ACT 401 AUDITING
Total 10 Points-(Please explain briefly.)
1. What are the five areas that an auditor must consider when trying to
gain an understanding of a Clients Business and Industry?
2. What are the four things that tha