AC410 Unit 8 Assignment

16-31.The auditor's opinion on the fairness of financial statements may be affected by subsequent events. 
Required:a.Define what is commonly referred to in auditing as a subsequent event, and describe the two general types of subsequent events.b.Identify those auditing procedures that the auditor should apply at or near the completion of fieldwork to disclose significant subsequent events.


(Whittington 651)
Whittington, Ray, Kurt Pany. PPK Principles of Auditing & Other Assurance Services with Connect Plus OLA, 19th Edition. McGraw-Hill Learning Solutions, 1/17/2013. VitalBook file.
The citation provided is a guideline. Please check each citation for accuracy before use.

16-35.Linda Tanner, CPA, is auditing the Carson Company. For the current year, Carson is presenting December 31, 20X5, financial statements with comparative financial statements for the year ended December 31, 20X4. In the prior year audit, Linda identified an understatement of prepaid expenses of $100,000 at December 31, 20X4, that was not corrected. In the current year, Linda found that prepaid expenses were understated by another $50,000 at December 31, 20X5. 
Required:a.Using the iron curtain approach, describe how Tanner would consider whether an adjustment is required.b.Using the rollover approach, describe how Tanner would consider whether an adjustment is required.c.Describe what SEC Staff Accounting Bulletin No. 108 requires in this situation.


(Whittington 652)
Whittington, Ray, Kurt Pany. PPK Principles of Auditing & Other Assurance Services with Connect Plus OLA, 19th Edition. McGraw-Hill Learning Solutions, 1/17/2013. VitalBook file.
The citation provided is a guideline. Please check each citation for accuracy before use.

17-24.While performing your audit of Williams Paper Company, you discover evidence that indicates that Williams may not have the ability to continue as a going concern. a.Discuss types of information that may indicate substantial doubt about a client's ability to remain a going concern.b.Explain the auditors' obligation in such situations


(Whittington 683)
Whittington, Ray, Kurt Pany. PPK Principles of Auditing & Other Assurance Services with Connect Plus OLA, 19th Edition. McGraw-Hill Learning Solutions, 1/17/2013. VitalBook file.
The citation provided is a guideline. Please check each citation for accuracy before use.

17-26.For each of the following brief scenarios, assume that you are reporting on a client's financial statements. Reply as to the type(s) of opinion possible for the scenario. In addition: ##Unless stated otherwise, assume the matter involved is material.##If the problem does not state that a misstatement (or possible misstatement) is pervasive, assume that it may or may not be pervasive (thus, the appropriate reply may include two possible reports).##Do not read more into the circumstance than what is presented.
Do not consider an auditor discretionary circumstance for modification of the audit report unless the situation explicitly suggests that the auditors wish to emphasize a particular matter. Report Types may be used once, more than once, or not at all.

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(Whittington 685)
Whittington, Ray, Kurt Pany. PPK Principles of Auditing & Other Assurance Services with Connect Plus OLA, 19th Edition. McGraw-Hill Learning Solutions, 1/17/2013. VitalBook file.
The citation provided is a guideline. Please check each citation for accuracy before use.