Learning objectives addressed by this exercise: Chapter 1-Learning Objectives 2, 5, 6, and 7 The list below indicates various engagements involving auditors. An evaluation of areas of concern related to effectiveness of the company's financial reporting process that were found to have problems in prior financial statement audits. The reported findings may allow for correction of issues prior to the arrival of the company's external auditors. A consultation in which the practitioner's function is to provide short-term counsel, based mostly on existing personal knowledge about a client-prepared business plan as well as suggesting a course of action related to the selection of a computer software for the client. A report that provides a detailed analysis of hypothetical "what-if" company financial statements for a five-year period in the future. A report that evaluates a company's economic performance and viability in the areas of social responsibility and environmental impact. A report for a non-profit state university that receives federal financial assistance through grants, loans, and cooperative agreements in excess of $500.000 annually. A report that represents expert testimony with regard to an investigation of a publicly traded company's economic losses related to unauthorized inventory purchasing agreements and procedures that existed as a result of inadequate financial reporting controls and lack of management oversight. An evaluation of a periodic report regarding contributions and expenditures filed by a liberal political action committee, whose expenditures exceeded $50,000 for a calendar year. A compilation of financial statements by an audit firm for their multinational publicly-traded client Oudatown's jet leasing company Cheadum. Cheadum is a private related-party- firm that is owned by Oudatown's CFO. An evaluation and report of a publicly traded company's effectiveness in administering the State of North Carolina's Water Quality Improvement Program The program uses state funds for both water conservation educational awareness as well as various water cleaning and aquifer restoration projects. The Company's management has the responsibility for ensuring compliance with program objectives as well as collecting and analyzing output measurements of the program A report that retroactively analyzes the effect of a proposed transaction on the company's historical financial statements "as if" that transaction had already occurred. For each engagement (1-10), identify the service type (A-D). audit type if applicable (I-V). accounting professional or auditor type (1-6). and the appropriate standard setting body (a-j). For the purposes of this assignment assume that most appropriately certified professionals are conducting the engagements and they are following the most specific and authoritative guidance available. Example answer for hypothetical engagement 11: A, II, 5, d Legend: Service Type: A = An service: B = An attestation service other this A C = An service that is not A or B: and D = A service other than A B or C Audit Type: I = A financial statement audit II = An operational audit III = A compliance IV = A or "fraud audit; and V = Not applicable Accounting Professional/Auditor: 1 = certified Public accruement: 2 = Eternal Auditor, 3 = Internal Auditor 4 = Internal Revenue Auditor; 5 = Government Auditor 6 = Fraud Auditor: Standard Setting Body: a = Public Company Accounting Over right Board; b = AICPA's Auditing Standard; Board, c = institute of Internal Auditor: d = government Accountability Office: e = AICPA's Accounting and Review Services f = AICPA's Assurance Services Executive committee; g = Internal Reverse Service: h = American institute of certified Public Accountants; i = International Auditing and Assurance standards; Board; j = Associations Below are various management assertions (a-o), related to various transaction cycles, concerning various levels of audit objectives. Quantity and price totals for purchase orders have been recorded at amounts identical to source documents (purchase orders, vendor invoices, receiving reports). All long-term debt that should have been recorded, has been recorded. Statement that inventoried costs include appropriate amounts that are attributable and directly traceable to the inventory. Each web. retail, and catalog sale is separately compiled and accounted for in the accounting system. Amounts recorded as ending inventory represent actual tangible items. Calculations included statements regarding executive officer stock compensation plans are precise. Intangible assets purchased during the year are recorded m the firm's name. Declaration that all amounts representing operating leases are properly reported. Amounts recorded as sales represent valid economic exchanges with customers. Disclosures related to derivative transactions are at the correct amount. Investments are classified by portfolio (i.e., trading, available-for-sale, and held-to-maturity) and appropriately recorded and displayed in the financial statements. All cash sales have been recorded. There are no hens or other restrictions on inventory. Payroll amounts are only recorded for work by existing employees that was actually performed. Accounts receivable represent amounts earned and realizable to the entity. For each management assertion (a-o) above, determine the following: Using the PCAOB nomenclature identify the MOST relevant management assertion (A-E). Determine the applicable transaction cycle (I - V). Determine the appropriate level of audit objective (1 - 3). Example answer for hypothetical management assertion p: C, IV, 1