Acct444 Wk1 Hw Solutions

In: Business and Management

Submitted By awechter
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1-14 a. (3) b. (2) c. (2) d. (3)

1-15 a. (2) b. (3) c. (4) d. (3)

1-21 The most likely type of auditor and the type of audit for each of the examples are:

EXAMPLE TYPE OF AUDITOR TYPE OF AUDIT 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. IRS
GAO
Internal auditor or CPA
CPA or Internal auditor
GAO
CPA
GAO
IRS
CPA
Internal auditor or CPA
Internal auditor or CPA
GAO Compliance
Operational
Operational
Financial statements
Operational
Financial statements
Financial statements
Compliance
Financial statements
Compliance
Financial statements
Compliance

2-16 a. (1) b. (2) c. (3) d. (3)

2-17 a. (2) b. (1) c. (2) d. (3)

2-21

BRIEF DESCRIPTION OF GAAS HOLMES' ACTIONS RESULTING IN FAILURE TO COMPLY WITH GAAS
GENERAL STANDARDS
1. The auditor must have adequate technical training and proficiency to perform the audit. 1. It was inappropriate for Holmes to hire the two students to conduct the audit. The audit must be conducted by persons with proper education and experience in the field of auditing. Although a junior assistant has not completed his formal education, he may help in the conduct of the audit as long as there is proper supervision and review.
2. The auditor must maintain independence in mental attitude in all matters relating to the audit. 2. To satisfy the second general standard, Holmes must be without bias with respect to the client under audit. Holmes has an obligation for fairness to the owners, management, and creditors who may rely on the report. Because of the financial interest in whether the bank loan is granted to Ray, Holmes is independent in neither fact nor appearance with respect to the assignment undertaken.
3. The auditor must exercise due professional care in the…...

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