f.Explain whether you believe the information in requirement d or e provides the most useful data for evaluating the potential for misstatements. Explain why.
g.Analyze the account balances for accounts receivable, inventory, and short/current long-term debt. Describe any observations about those accounts and discuss additional information you want to consider during the current year audit.
h. Based on your calculations, assess the likelihood (high, medium, or low) that Pinnacle is likely to fail financially in the next 12 months. (Arens 247)
Arens, Alvin A, Randal J Elder, and Mark Beasley. Auditing and Assurance Services, VitalSource for DeVry University, 14th Edition. Pearson Learning Solutions, 12/2012.
This question was asked on Sep 18, 2013.
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