Among other skills, the following questions will require the student's basic understanding of the concepts specific to.

• AU-C Section 300 Planning an Audit.
• AU-C Section 700 Forming an Opinion and Reporting on Financial Statements.
• AU-C Section 230 Audit Documentation.
• AU-C Section 560 Subsequent Events.
• AU-C Section 240 Consideration of Fraud in a Financial Statement Audit.
• AU-C Section 200 General Principles and Responsibilities.
• AU-C Section 315 Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement.
• AU-C Section 705 Modification to the Opinion in the Independent Auditor's Report.

Problem 6

In connection with your firm's audit of the financial statements of Foxtrot Corporation (the Company) for the year ended December 31, 2023, you have been assigned to work with the engagement manager on the audit of the Company's accounts payable. You have completed your assigned work and determined that an account payable to a subcontractor on Project A, in the amount of $50,000, had been inadvertently omitted from accounts payable. The Company accounts for its long-term construction contracts on the percentage completion method of accounting. A summary of Project A, without inclusion of the omitted account payable follows.