Auditing:

Question 1:

Question 2:

Question 3:

Regarding the given cases, please choose the threat on the auditor's independence and its impact on the fair presentation of the financial statements 1. Due to a shortage of personnel, the client asks a member firm to assist with the authorization of accounting transactions Type of Threat Effect on the Fair Presentation 2. It becomes obvious that a member of a CPA firm has developed a close relationship with an attest client. Type of Threat Effect on the Fair Presentation 3. An attest client threatens the member with not awarding future additional engagements to the firm if the firm does not agree with the client on a particular accounting matter, Type of Threat Effect on the Fair Presentation 4. A member actively endorses an attest client's products or services. Type of Threat Effect on the Fair Presentation QUESTION 2 - 24 POINTS 3 POINTS PER EACH) Listed below are several accounts listed from a company's trial balance. Next to each account put the letter corresponding to the transaction cycle used to audit the account. A = Acquisition and payment cycle C = Capital acquisition and repayment cycle I = Inventory and warehousing cycle P= Payroll and personnel cycle S = Sales and collection cycle Sales returns and allowances Capital stock Buildings Notes payable Salaries and commissions Cost of goods sold Trade accounts receivable Rent Case Assertion Company recorded all the salary payment transactions. Sales transactions are recored on the correct date. Purhcase transactions are recorded with the proper accounts. Footnote disclosures related to long-term debt are accurate. Current liabilities have been classified into the proper accounts, There is no collateral on the property, plant, equipment. Bad debt expense is appropriately calculated