Audit report, Auditing

Assignment Help:

You are auditing XYZ company for the year ended 12/31/2012 and will be expressing an opinion on their financial statements as of that date. You completed your field work on 1/21/13 and are now preparing your audit report and opinion. For each of the following, independent scenarios, describe how they should affect the financial statements for 12/31/2012.
a) A large accounts receivable from ABC to XYZ (material to the financial statements) was considered fully collectible at 12/31/12. However, ABC suffered a plant explosion on 1/25/13. Because ABC was uninsured, it is not likely that the account will not be paid.
b) The tax court ruled in favor of XYZ on 1/26/13. The case involved deductions XYZ claimed on their 2006 and 2007 tax returns. In accruing taxes payable, XYZ provided for the full amount of the potential disallowances. The IRS has indicated it will not appear the court's decision.
c) XYZ's manufacturing division, whose assets constituted 45% of XYZ's total assets, was sold on 2/1/13. The new owner assumed the bonded indebtedness associated with the division.
d) On 1/15/13, a major investment advisor issued a negative report on XYZ's future prospects. The market price of XYZ's common stock subsequently fell by 40%.


Related Discussions:- Audit report

Meaning of the auditing definition, Meaning of the auditing definition a)...

Meaning of the auditing definition a) Orderly and efficient manner: An organization which is run in an orderly and proficient manner is able to satisfy the requirements o

Audit evidence, discuss the factors affecting the sufficiency of audit evid...

discuss the factors affecting the sufficiency of audit evidence

Limitation of audit evidence, Limitation of Audit Evidence The quantit...

Limitation of Audit Evidence The quantity and quality of evidence is constrained through the following factors as: Absolute proof is not possible; Some assert

Accounting concept and records-consistency, What fundamental accounting con...

What fundamental accounting concepts must you keep in mind in preparing to carry out your audit? Accounting Concept and Records Fundamental Accounting concepts are cove

Systems based audit approach, Systems Based audit approach The basis of...

Systems Based audit approach The basis of IAS 400, Risk Assessment and Internal Control. The term systems audit refers to the typical audit approach to medium and large comp

Corporate governance, what are requirements for a company to comply with ki...

what are requirements for a company to comply with king code?

Insurance companies, Insurance Companies Authoritative documents invol...

Insurance Companies Authoritative documents involved as: The Insurance Act The Companies Act IFRS 4 Insurance Contracts The major legislation governing insu

Auditing, Please assist me with these assignments The auditors for Weston U...

Please assist me with these assignments The auditors for Weston University are conducting their audit for the fiscal year ended December 31, 2011. Specifically, the audit firm is n

Audit procedures, audit procedure for shares or common stock

audit procedure for shares or common stock

Write Your Message!

Captcha
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