chap 13//13.8

Question 1

consolidated FS

Answer 1

Auditors need to gather evidence in the following areas:

-Representations made by those charged with governance as to the existence and ownership of the investment and existence significant influence

-Appropriateness of carrying amount of investment

-Adequacy of financial statement disclosures

-Appropriateness of equity accounting adjustments such as adjustments for dissimilar accounting policies and elimination of unrealized profits and losses

Question 2

subs prdrs

Answer 2

1. identify reporting entity
2. very FS of other group entities
3. verify consolidating FS
4. ENSURE FS PRESENTED according to accounting stds