Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Write an audit story example like the following example Dale Boucher, the owner of a small electronics firm, asked Sally Jones, CPA, to con- duct

Write an audit story example like the following example

Dale Boucher, the owner of a small electronics firm, asked Sally Jones, CPA, to con- duct an audit of the companys records. Boucher told Jones that the audit was to be completed in time to submit audited financial statements to a bank as part of a loan application. Jones immediately accepted the engagement and agreed to provide an auditors report within one month. Boucher agreed to pay Jones her normal audit fee plus a percentage of the loan if it was granted. Jones hired two recent accounting graduates to conduct the audit and spent sev- eral hours telling them exactly what to do. She told the new hires not to spend time reviewing the entitys system of internal control but to concentrate on proving the mathematical accuracy of the general and subsidiary ledgers and summarizing the data in the accounting records that supported Bouchers financial statements. The new hires followed Joness instructions and after two weeks gave Jones the financial statements excluding footnotes. Jones reviewed the statements and pre- pared an unqualified auditors report. The report did not refer to generally accepted accounting principles, and no audit procedures were conducted to verify the year- to-year application of such principles.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Corporate Finance

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Gordon Roberts, Hamdi Driss

8th Canadian Edition

01259270114, 9781259270116

Students also viewed these Accounting questions