WK.6 FINAL REQUIRED DISCUSSION QUESTIONS
WK. 6 FINAL REQUIRED DISCUSSION QUESTIONS
1. Identify major activities performed by auditors in completing the substantive procedures following the date of the financial statements. Explain the role of attorney letters in evaluating litigation, claims, and assessments.
2. Identify the final steps in the completion of an audit. Explain the auditors' responsibility for subsequent events and subsequently discovered facts.
3. Explain the types of reports that accompany an entity's financial statements and the content of the auditor's standard (unmodified) report. Identify situations in which the language I the standard (unmodified) report is modified and the type of opinion issued in those circumstances.
4. Identify other circumstances affecting the auditors' reporting responsibilities and explain how they affect auditors' reports on an entity's financial statements.
5. When I worked at KPMG we would ask for an attorney letter. Basically, we would ask regarding any outstanding litigation and the likely outcome. This could be used to determine whether there existed any potential contingent liability. Given the fact some attorneys either work in house or are on retainer, how reliable will the attorney letter be?
6. I believe most auditors think the client is either attempting to move expenses from the current period to the subsequent period or move next year's revenue into the current period. However, there are times that the client is having too good of a year and wants to shift profit to the next period. How can the auditor test for this? Is this really that bad given the client is being conservative?
ANSWER EACH QUESTION IN 200 OR MORE WORDS
USE CITATIONS AND REFERENCES