List the financial statement assertions and indicate who is responsible for those assertions
Existence and Occurrence = assets, liabilities, and equity interest exist and recorded
transactions and events have occurred.
Rights and obligations = the company
Auditors may be held liable to both their clients and third parties under common law.
a. What must a client or a third party beneficiary prove to recover losses from the
auditors under common law?
b. What defenses can the auditor use in such a suit?
4. Explain the required communication between the successor auditor and the predecessor
auditor. Include the specific questions that must be asked. Also discuss the appropriate
response when the client refuses to allow the communication.
Essays exam 2
1. Define audit risk and identify and explain the components of audit risk. Identify the
component which is controlled by the auditor? Explain the inter-relationship among
Audit risk is when auditors fail to appropriately m
1. Auditors must consider the possibility of fraud by employees or management on every
audit engagement. They must also consider the possibility that the client
in illegal acts.
a. Define the terms:
fraud. In the definition of
Barry Manilow was born in Brooklyn, New York, but he currently lives in Palm Springs, California. Barry
Manilow (born Barry Alan Pincus; June 17, 1943) is an American singer-songwriter and producer. He is
best known for such recordings as "Mandy", "Can't