A4 Flashcards
1
Q
in evaluating reasonableness of an estimate, what 4 assumptions will auditor focus on
A
focus on assumptions that are:
- significant to accounting estimate
- sensitive to variations
- deviations from historical patterns
- subjective/susceptible to bias
2
Q
who request inquiry of client lawyer
A
client managerment
3
Q
two types of opinions auditor may express if concludes issuer has a substantial doubt of going concern & the disclosures are adequate
A
unqualified + explanatory
disclaimed
4
Q
best way to prevent employee access to cash receipts?
A
bank lockbox! lock the cash!
5
Q
to make sure stock issuances are authorized, what is something auditor can do
A
trace corporate stock issuances to the board of directors minutes
