Jones hired two accounting students to conduct the audit. He spent several hours telling the students exactly what to do during their audit work. He also mention to the students not to spend a lot of time reviewing the company’s internal controls, but instead to concentrate on proving the mathematical accuracy of the ledger accounts and summarizing the data in the accounting records that support Shalimar’s financial statements. The students followed Jones instructions and after 10 days provide Jones the financial statements without any footnotes. Jones reviewed the statements and prepared an unqualified auditor’s report. The report did not refer to generally accepted accounting principles or to the year-to-year application of such principles.
Briefly describe each of the generally accepted auditing standards and indicate how the action(s) of Jones resulted in a failure to comply with each standard. Use the table below to present your answers
This question was asked on Dec 06, 2012.
Recently Asked Questions
- Bonner Metals wants to issue new 20-year bonds for some much-needed expansion projects. The company currently has 8.5 percent bonds on the market that sell for
- Financial Statement Analysis In this unit you learned about the preparation and content of financial statements. A common phrase in finance is "cash is king!"
- You purchase a bond with an invoice price of $1,319. The bond has a coupon rate of 6.25 percent, a face value of $1,000, and there are two months to the next