Question
Following are a series of independent situations (i.e. do not let anyone's situation affect your view of the other situations). For each situation below, describe
Following are a series of independent situations (i.e. do not let anyone's situation affect your view of the other situations). For each situation below, describe what action you believe you as the auditor should take in the given situation, and provide an explanation as to why you believe this is the correct course of action. Support your response with reference to the auditing standards where appropriate. For the purpose of this activity, recall that the financial statements are dated December 31, 2020.
-As you were completing the final summary of your working papers for accrued liabilities, one of the accounts payable clerks informed you that she had discovered the December invoice for coffee supplies had not been entered into accounts payable, in the amount of $58.
-During the fiscal year, the company loaned $50,000 to Seamus McTavish, the Vice President, Pipeline Operations and Engineering. Subsequent to the end of the year, you read in the minutes of the Board of Director's meeting that the Board agreed to forgive this loan effective this date.
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