30 May AC 410 Unit 8 Homework Assignment
Questions Requiring Analysis: 16–31
The auditor’s opinion on the fairness of financial statements may be affected by subsequent events.
Required:
– Define what is commonly referred to in auditing as a subsequent event, and describe the two general types of subsequent events.
– Identify those auditing procedures that the auditor should apply at or near the completion of fieldwork to disclose significant subsequent events.
Questions Requiring Analysis: 16–35
Required:
– Using the iron curtain approach, describe how Tanner would consider whether an adjustment is required.
– Using the rollover approach, describe how Tanner would consider whether an adjustment is required.
– Describe what SEC Staff Accounting Bulletin No. 108 requires in this situation.
Questions Requiring Analysis: 17–24
While performing your audit of Williams Paper Company, you discover evidence that indicates that Williams may not have the ability to continue as a going concern.
– Discuss types of information that may indicate substantial doubt about a client’s ability to remain a going concern.
– Explain the auditors’ obligation in such situations.
Objective Questions: 17–26
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