Issue the audit report on the three specific accounts

Assignment Help Auditing
Reference no: EM131155626

Jones, CPA, has completed the audit of Sarack Lumber Supply Co. and has issued a standard unqualified report. In addition to a report on the overall financial statements, the company needs a special audited report on three specific accounts: sales, net fixed assets, and inventory valued at FIFO. The report is to be issued to Sarack's lessor, who bases annual rentals on these three accounts. Jones was not aware of the need for the report on the three specific accounts until after the overall audit was completed.

Required

a. Explain why Jones is unlikely to be able to issue the audit report on the three specific accounts without additional audit tests.
b. What additional tests are likely to be needed before the report on the three specific accounts can be issued?
c. Assuming that Jones is able to satisfy all the requirements needed to issue the report on the three specific accounts, write the report. Make any necessary assumptions. 

Reference no: EM131155626

Previous Q& A

  Explain two of the four strategies of dual concerns model

Explain two of the four strategies of the dual concerns model. Please include an example of each. Select two of the engagement strategy aspects, and describe when and why it would be appropriate to use these strategies

  Utilizes the internet and other recent technologies

1. Explain the evolvement of the Internet and how it changes the way customers, suppliers and companies interact. 2. Describe how your company utilizes the Internet and other recent technologies. (Be sure to include both internal and external uses)

  Write the appropriate supplemental report

Bengston, CPA, is conducting the audit of Pollution Control Devices, Inc. In addition, a supplemental negative assurance report is required to a major mortgage holder. The supplemental report concerns indenture agreements to keep the client from defa..

  How holtzman go about showing the refugees constant struggle

How does Alison Blunt go about exploring the intersections of home and identity for Anglo-Indians, particularly for women in the fifty years before and after Indian independence (1947), both domiciled in India and resident in Britain?

  Calculate the revenue-maximizing level of output

Using the equation for MR (given below), calculate the revenue-maximizing level of output. Use the following formula to calculate the profit-maximizing point: MR - MC = 0. Explain your answer.

  Write paper on college students and underage drinking

Write Research Paper. - Research paper topic is: College Students and Underage Drinking- What is your narrowed topic?

  Coordination among team members

Your team is having difficulty assigning work to each team member to meet overall team goals. Which of the following actions would be most likely to enhance coordination among your team's members?

  Describe and evaluate eight peer-reviewed articles

Describe and evaluate eight peer-reviewed articles or books that you will use to write the final paper.

  Define the purpose of a debt compliance letter

Lockwood Co. is a supplier of irrigation equipment. Much of the equipment, including that supplied to Taylor, is sold on a secured contract basis. Taylor Fruit Farms is an audit client of yours, but Lockwood is not. In addition to the present equipme..

  Brand image and product positioning in the long run

Why might penetration pricing potentially negatively impact brand image and product positioning in the long run? Given the risk, why would a marketing manager use penetration pricing? Identify a brand (other than the examples in the chapter) that ..

Reviews

Write a Review

 

Similar Q& A

  Nbsptop managers of mcdonough products inc have asked for

nbsptop managers of mcdonough products inc. have asked for your help in comparing the company s profit performance and

  Factors that influence sample size

A number of factors influence the sample size for a substantive test of details of an account balance. All other factors being equal, which of the following would lead to a larger sample size?

  Conduct an audit of the operation

Conduct an audit of the operation in your chosen area' of the organisation

  Should discontinue production of its subassemblies and buy

Should rent new equipment and continue to make its subassemblies internally, or whether it should discontinue production of its subassemblies and buy them from an outside supplier.

  Appraisal value issue

Discuss the ethical issues involved with this situation. Explain how you should handle this situation. Explain what type of report you should issue and why.

  Notification to regulatory agency

During the audit of a regulated company you find that in three instances there were events that occurred that required the company to notify the regulatory agency of their occurrence.

  Business process approach to internal auditing

Identify four key activities/processes involved in the operations of the Commission (there are more than four). Prioritize them in terms of significance to the Board's operations

  Identify five indicators of a financial nature

Identify five indicators of a financial nature that may raise doubt on an entity's ability to continue as a going concern and what evidence should the auditor obtain with respect to management's plan about the various mitigating factors identified i..

  Confirmation of accounts receivable

Auditing standards require the confirmation of accounts receivable in normal circumstances. What are the three exceptions to this requirement?

  Describe necessary qualifications and experience

Describe the preferred format of the internal audit report, comparing it the recent report from the external auditors.

  Such as monthly closing and reconciliation processes

1.Auditors often have to test the effectiveness of infrequently operating controls, such as monthly closing and reconciliation processes.

  Potential audit procedure failures

Potential Audit Procedure Failures. For each of the general audit procedures of (1) recalculation,(b)observation, (c)confirmation (accounts receivable, securities, or other assets), (d)inquiry, (e) inspection of internal documents

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd