Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

a. Management of Thurman Corporation included additional supplementary information in documents that include the audited financial statements for the year ended December 31, 2019. Management

image text in transcribed
a. Management of Thurman Corporation included additional supplementary information in documents that include the audited financial statements for the year ended December 31, 2019. Management has asked its audit firm, Wally, CPAs, whether they can report on the supplementary information. Which of the following conditions would preclude Wally, CPAs, from conducting this engagement? 1. The supplementary information is derived from the accounting records used to generate the basic financial statements. 2. The supplementary information covers the period January 1, 2019, through February 15, 2020. 3. Wally's opinion on the basic financial statements was unmodified. 4. When evaluating supplementary information, Wally plans to use the same materiality threshold as that used in the audit of the basic financial statements a. Which of the following statements is correct about an auditor's required communication with those charged with governance? 1. Any matters communicated with those charged with governance are also required to be communicated to the entity's management. 2. The auditor is required to inform those charged with governance about significant misstatements discovered by the auditor and subsequently corrected by management. 3. Disagreements with management about the application of accounting principles must be communicated in writing to those charged with governance. 4. The auditor should not communicate frequently recurring misstatements unless they are material. b. In addition to making management inquiries, an auditor should perform the following procedures to identify client contingencies with the exception of 1. obtaining a client representation letter. 2. reviewing derivative transactions reflected on the quarter-end balance sheet. 3. reviewing the status of long-term leases. 4. discussing sales contracts with the sales manager

Step by Step Solution

There are 3 Steps involved in it

Step: 1

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

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

Audit And Assurance Study Text

Authors: Get Through Guides

1st Edition

1848080255, 978-1848080256

More Books

Students also viewed these Accounting questions