External Auditing Solutions Ch2-3

External Auditiing
Week 1 Assignment Ch 2 & 3

business 2-7
Since the Sarbanes-Oxley Act of 2002 (SOX), the PCAOB is responsible for establishing the auditing standards for public companies, whereas the AICPA (Auditing Standards Board)is responsible for
private companies. anterior to the SOX, the AICPA was responsible to establish auditing standards for both private and public companies. .

riddle 2-10
Although the generally accepted auditing standards are quite general, it is probably surpass to keep them that way rather than having specific audit guidelines. I believe this is the best way to set the standards because it would still go forth the CPA to coiffe a professional judgment by applying their infrastanding of GAAP. In addition, having specific standards would probably make it harder for CPAs to conform to to very technical standards. They would have less room to make an interpretation of GAAP.

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

Problem 2-20
a. Since Rossi and Montgomery, CPA never had a client go public before, it would probably be a challenge for them to perform all the audit work for a public social club since there are more requirements of the company to file with the siemens. The firm needs to assess whether they have the fitting staff and training to audit a public client.



similarly the CPA firm cannot perform any more consulting or accounting services for the audit client since it is not allowed under the PCAOB audit standards.
b. The auditors would have to complete the registration of the company with the SEC via Form S-1, file quarterly monetarys on Form 10-Q, and accordingly file the annual fiscal years financial tellments via Form 10K in addition to the annual audited financial statements.

Problem 3-23
a. 2)
b. 3)
c. 3)

Problem 3-25
a. 2)
b. 3)
c. 3)

Problem 3-26
a. If using correctly stated, it may imply that the financial statements are truly accurate versus the alternative report appears to state that there...If you want to get a full essay, order it on our website: Ordercustompaper.com



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