Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Consider the following scenario, and then respond to the questions below: You and your best friend are both majoring in accounting, and the two of

Consider the following scenario, and then respond to the questions below:

You and your best friend are both majoring in accounting, and the two of you have had several courses together throughout your studies. Due to a scheduling conflict, you're on your own in the auditing class, and loving the content so far! As you try to explain the class to your friend, it becomes clear that he doesn't really understand the audit process. He asks you the following questions:

1. Isn't it the auditor's job just to check the numbers and calculations on financial statements and find all kinds of fraud?

2. Why do you need to understand the client's business? Isn't the CPA there to audit financial statements?

3. What is the purpose of auditing an entity's financial statements?

How should you respond to your friend's questions? After you formulate your responses, find a few resources reputable sources to help your friend understand the auditing process.

Step by Step Solution

3.35 Rating (158 Votes )

There are 3 Steps involved in it

Step: 1

1 Yes One of the responsibilities of the auditor is to check the numbers as well as calculations on the financial statements and reports in order to find misstatements and frauds However the primary j... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Document Format ( 2 attachments)

PDF file Icon
608f0d6eb815a_20798.pdf

180 KBs PDF File

Word file Icon
608f0d6eb815a_20798.docx

120 KBs Word File

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial accounting

Authors: ramji balakrishnan, k. s i varamakrishnan, Geoffrey b. sprin

1st edition

471467855, 978-0471467854

Students also viewed these Accounting questions

Question

What is the purpose of developing an IT strategic plan?

Answered: 1 week ago

Question

Why do firms use predetermined overhead rates?

Answered: 1 week ago