2. How do we treat correction of prior period error?

3. Differentiate the effects of a balance sheet error as against an income statement error in the net income.

4. When will a counter balancing error have an auto correct effect on the retained earnings?

5. When is an investment be reported as a cash equivalent?

6. In the audit of petty cash fund, for unexpended employees contributions, unclaimed salary and cash collections of accounts receivable or sales, they should be included in the accounted only when it is intact or the enveloped is still closed on the cash count date. However, they are included as part of cash accountabilities whether intact or not. Explain.