POST ACC522 Unit 7 Discussion Latest 2018 October

ACC522 Advanced Audit Issues

Unit 7 Discussion

Read Case #10 - Sampling for Attributes

From the case above, let's discuss the following:

1) Auditors must evaluate an entire set of financial statements to express an opinion. Considering that risk is always involved in selecting only a sample, why are auditors willing to accept less than a complete review and analysis when accumulating evidence?

2) Mitchell has indicated that she assumes Luck has made some mistakes in allocating year-end expenses. How can the auditor tolerate using work that is known to be incorrect? Why might Luck or other individuals in his position commit errors like these?

Read Case #9 - Resolving Audit Problems

In this case study, you will read through common audit issues that auditors discuss with the management as the audit is winding down. Items to be included in the notes to financial statements "disclosures" are always challenging issues between the auditor and the client.

What are considered "related party transactions" in preparing audit financial statements?

In this post, find an audited financial statement online with disclosures concerning "related parties," share the link to the article then describe the related party transactions disclosed. Do you agree or disagree with the inclusion of the disclosure? Justify the importance of the disclosure and how this disclosure impacts the users of the financial statements.

Do auditors have any ethical obligations as to what is disclosed on the client's financial statements? Why or why not?