Your partner drafted the following auditors' report yesterday. You need to describe the reporting deficiencies, explain the
Question:
Your partner drafted the following auditors' report yesterday. You need to describe the reporting deficiencies, explain the reasons for them, and discuss with the partner how the report should be corrected. You have decided to prepare a three-column worksheet showing the deficiencies, reasons, and corrections needed. Your partner's report follows:
I made my examination in accordance with auditing standards generally accepted in the United States of America. However, I am not independent with respect to Mavis Corporation because my wife owns 5 percent of the company's outstanding common stock. The accompanying balance sheet as of December 31, 2017, and the related statements of income, changes in shareholders' equity, and cash flows for the year then ended were not audited by me. Accordingly, I do not express an opinion on them.
Required:
Prepare the three-column worksheet described?
Balance SheetBalance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Step by Step Answer:
Audit Report Deficiencies Disclaimer of Opinion Deficiency Reason Correction 1 The first sentence of ...View the full answer
Auditing and Assurance Services
ISBN: 978-1260152166
7th edition
Authors: Timothy Louwers, Allen Blay, David Sinason, Jerry Strawser, Jay Thibodeau
