Reference no: EM131999239

Strapp LLP is auditing the Year 5 financial statements of Carfagno Inc., a publicly traded company.

Part 1:

Select the appropriate file for the documentation listed below that was obtained by Strapp during the Year 5 audit. (Current File or Permanent File)

Part 2:

Audit documentation must be provided to a third party, even without the permission of the client, in certain circumstances. Put a check mark in the box next to the circumstances in which Strapp could provide information from the Carfagno audit to a third party without Carfagno's permission.

Subpoenaed by a court

Requested by Carfagno's attorney

For investigation by the state board of accountancy

Requested by Carfagno's bank in support of a loan in excess of $1,000,000 Requested by Carfagno's shareholders

Requested by Strapp's attorneys if Strapp was sued by Carfagno

Part 3:

Below is a section of Carfagno's Furniture and Fixtures schedule. Furniture and Fixtures is depreciated by Carfagno using the straight­line method over seven years. Marcus James, CPA, the senior auditor on the Carfagno engagement, used the tickmarks shown on the schedule to indicate the procedures that he performed during the audit.

For each of the tickmarks shown in the schedule, identify the correct audit procedure from the drop­down menu in Column 2.

What audit procedure was completed by each tickmark?

Agreed amount to the subsidiary ledger, cross footed, footed, recalculated, traced and agreed to supporting invoice.