POST ACC522 Unit 5 Discussion Latest 2018 October

ACC522 Advanced Audit Issues

Unit 5 Discussion

Read Case # 6 in Lakeside Company along with the chapters assigned in the audit text. Respond and challenge is other respectfully on the following questions:

The first generally accepted auditing standard of fieldwork states that assistants, if any, are to be properly supervised. Why is this requirement necessary, and what supervision is indicated on the audit document produced in Exhibit 6-1?

On the audit document, Heyman has included the objective, conclusions, and scope of this testing. Why is this information important on the audit document?

The case states that audit procedures are designed by the auditor in-charge of the engagement. Are audit procedures designed separately for each audit? Do auditing firms ever use standardized audit procedures? Which is preferable for the firm’s quality controls, client-specific or standardized procedures?

Assume that Art Heyman had found one or more apparent inconsistencies during his work on this part of the audit. What would be his responsibility in addressing these problems? To whom should he inquire? What documentation should he maintain?

Read Case # 5 in Lakeside Company and assigned readings in the Audit text. Answer the following questions. Challenge each other respectfully.

You were up all hours studying for your audit class. You decided to go to a fast food restaurant for a quick bite. On the drive through window you see a sign that says, "If you did not receive a receipt for this transaction, please let us know and your meal is free." Why is the restaurant posting this sign? What does it hope to accomplish?

Discuss the auditor's responsibility for detecting fraud, including fraudulent financial reporting and misappropriation of assets.

After having read the first 5 cases in Lakeside Company, discuss the potential signs that you have read that should alert the auditors of the potential existence of fraud.