POST ACC522 Unit 1 Discussion Latest 2018 October

ACC522 Advanced Audit Issues

Unit 1 Discussion

Let’s explore what CPA firms do during the course of a financial statement audit by answering the following questions:

What is the main objective of the audit of an entity’s financial statements?

What representations or guarantees do auditors make about the accuracy of the financial statements?

Is it the responsibility of the auditor to detect all kinds of fraud that may have taken place for the financial statements being audited? Explain.

Why is there a need for the CPA firm to understand the business of the audit client?

Read Introductory Case on pages X and XI in the Lakeside Company text. Read chapters 1 and 2 and use your library resources to answer the following questions:

What are the main duties of each of the positions that comprise Abernethy and Chapman’s engagement team (i.e., partner, manager, senior auditor, and staff auditor)?

What is the purpose of having a partner-in-charge and a consulting partner on each engagement? What are the rules regarding partner rotation? Why is this important?