Answer the question 1 from following choices( Qualified opinion only, Qualified opinion or disclaimer, Unqualified opinion with an emphasis of a matter paragraph, Qualified or Adverse opinion with an explanatory paragraph, Adverse opinion only, . Disclaimer of opinion)

1 Based on recent analysis of usage, the entity has changed the useful life of its office equipment from five to four years. This change is reflected in the depreciation amounts computed for the current year.

• Define what is meant by the term "subsequent event". In addition, identify the two types of subsequent events and indicate how auditors should modify the engagement for the discovery of subsequent events.

• Answer this random questions

1 How should a contingent liability that has a remote possibility of resulting in a payout by the client be handled in the financial statements?

2 The assertion that auditors typically emphasize in the revenue and collection cycle is occurrence. What is most likely the next most important assertion?

3 GAAS require the auditor provide what level of assurance as to the accuracy of the client's financial statements?

4 What additional information is now required in the audit report of a public company? (I'm looking for three words.)

3 Micro Chip Corporation (MCC) has a special PO Box for customer payments. Jane is responsible for:

going to the post office every day, emptying the post office box,

opening the mail,

making a prelist,

sending the remittance advices to accounts receivable, and sending the checks to the cashier's office.

Jane has opening a business account at her bank for Master Cleaning Company (MCC). Several of Micro Chips checks are made out with only the initials MCC. Jane selects certain checks made out only with the initials MCC and deposits them in her business account. She would destroy the remittance advice.

1. Name two controls that would prevent or detect this fraud.

2. Name two audit procedures that might detect this fraud

3. If the fraud isn't detected and corrected, what will be the impact on the financial statements?