1. Current Attempt in Progress The Sarbanes-Oxley Act of 2002 made it unlawful to perform audit services for a public company and also perform the certain nonattest services for audit clients. List three of the prohibited services and come up with an example of why it may be inappropriate for an auditor to perform both an audit and that particular service.
2. View Policies Current Attempt in Progress Describe a situation in which an auditor may wish to use the work of a specialist.
3. Current Attempt in Progress Compare and contrast the permanent file and the current file. Provide at least three examples of the types of documentation found in each.
4. View Policies Current Attempt in Progress Lucas Edgerton is a staff auditor at Jansen, Smith, and Bryan, LLP. During the audit of a regional pizza franchise, Lucas discovers several deficiencies in internal controls. Explain how Lucas should determine whether or not these deficiencies are significant and/or material weaknesses.
5. Your new client, Dallas Bread & Pastry, is a small bakery located in Dallas, TX. All sales are made at the local storefront on a cash or credit card basis. Dallas Bread & Pastry has 3 employees. The owner bakes and does the purchasing of ingredients and supplies. There is a second baker who arrives at 3am daily to bake and clean up the kitchen at the end of the day. There is an administrative employee who handles payroll and accounts payable processes. Describe which form of documentation you would use to document your understanding of Dallas Bread & Pastry's internal controls and provide a rationale for your decision.