My auditing firm is auditing the asset account Investments. Included in Investments is a material investment
Fantastic news! We've Found the answer you've been seeking!
Question:
My auditing firm is auditing the asset account “Investments”. Included in “Investments” is a material investment – Investment in BBw.inc. You learn that this company is a non-public company and my client, company A, has valued this investment at its fair value. The manager tells you that no one on the engagement team knows how to audit this asset. How is this concerning to the audit and in which way? Is there any rules talking about this situation?
Expert Answer:
Answer rating: 100% (QA)
The item Investment is a small portion in the balance sheet The auditors usually ... View the full answer
Posted Date:
Students also viewed these accounting questions
-
You are an audit engagement manager of a public listed client of AB co. The audit senior has informed you that they have completed significant audit procedures for the final audit of this client....
-
A public relations agency tells its client that 80% of the residents in a 50-mile radius believe the company is an industry leader. Skeptical, the company commissions a survey in which just 320 of...
-
You are part of the audit team that is auditing Happy Chicken, Inc., a company that franchises Happy Chicken family restaurants. During the current year, management of Happy Chicken purchased for $2...
-
The value of integral integration from - infinity to infinity dx/1+x^4
-
The long-term liability section of Eastern Post Corporation's balance sheet as of December 31, 2010, included 10% bonds having a face amount of $40 million and a remaining premium of $6 million. On...
-
What document initiates the sales process?
-
The total of the present value of the cash flows produced by a bond. It is calculated as the present value of the annuity of interest payments plus the present value of the principal. True/False
-
Wayne Company makes two types of circuit boards. One is a high-caliber board designed to accomplish the most demanding tasks; the other is a low-caliber board designed to provide limited service at...
-
The exact value of sin285 is written as a radical in the form -va - Vb The sum of a and b is 4 Answer: To verify the identity 1 - sin 0 cos 0tan 0 = cos20, a student substituted 0 = 337. To the...
-
1. What are the inputs, process, output, and feedback/control for a grocery store such as Sobeys? 2. What are the operations decisions for running a grocery store such as So beys? Sobeys Inc. is the...
-
In 2020, during the global pandemic, use of 3PLs grew. a. True b. False
-
In the preliminary work for a July 31, 198Y, audit, the auditor decided to test the operation of the accounts payable/cash disbursements system. Checks written between August 1,198X, and April...
-
Each of the following questions concerns the concept of materiality in auditing: a. What criteria should the auditor use in deciding whether an estimated error in inventory, based on a sample, is...
-
What is meant by the efficiency of an estimator as it is used in variables sampling ? Why is efficiency an important factor in deciding on a variables method ?
-
You decided to use attributes sampling in your testing of Frederics Clothings sales procedures for the year ended July 31, 198X. The client has a straightforward system that in previous years has...
-
The determination of a sampling distribution requires a population with a known mean, standard deviation, sample size, and knowledge of the population distribution. In practice, the auditor is...
-
The Uniformed Services Employment and Reemployment Rights Act (USERRA) will not protect a returning soldier's job if the
-
Write the binomial probability in words. Then, use a continuity correction to convert the binomial probability to a normal distribution probability. P(x 110)
-
Tenet Healthcare Corp., the second largest publicly traded hospital chain in the United States, had a large amount of uncollectible accounts expense because so many patients were unable to pay their...
-
Access the annual reports of J.C. Penney and Dillards. Find the accounts receivable on each companys balance sheet and the notes to the financial statements that are related to those accounts. Which...
-
Refer to the CVS annual report in the Supplement to Chapter 1 and to the following data (in millions) for Walgreens: net sales, $37,508.2 and $32,505.4 for 2004 and 2003, respectively; accounts...
Study smarter with the SolutionInn App