task 1: Given that companies are often inclined to overstate revenues, list some of the best auditing procedures to ensure revenues are correctly stated on the client’s financial statements (about 150-200 words)
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task 2: “The auditor’s conclusions are based on samples.” Do you think that the use of samples increases the risks of the auditor arriving at an incorrect conclusion? (about 150-200 words)
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below are the questions that can be found on Chegg please do not copy the answer directly since all the writings would be scanned via the plagiarism machine. Please at least change the sentence format and add some own words!!
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task 3:See the “Take-Two Interactive Software, Inc.” case for this question.
Analyze Take-Two’s 1998-2000 financial data included in Exhibit 1. Compute the following financial ratios for each of those years: age of accounts receivable, age of inventory, gross profit percentage, profit margin percentage, return on assets, return on equity, current ratio, debt-to-equity ratio, and the quality-of-earnings ratio. What major “red flags,” if any, were present in Take-Two’s financial statements given these ratios? Explain.
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task 4: See the “Take-Two Interactive Software, Inc.” case for this question.
Identify the primary audit objectives that auditors hope to accomplish by confirming a client’s year-end accounts receivable. Explain the difference between “positive” and “negative” confirmation requests and discuss the quality of audit evidence yielded by each.
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task 5: See the “Take-Two Interactive Software, Inc.” case for this question.
Identify audit tests that may be used as alternative audit procedures when a response is not received for a positive confirmation request. Compare and contrast the quality of audit evidence yielded by these procedures with that produced by audit confirmation procedures.
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task6: See the “Take-Two Interactive Software, Inc.” case for this question.
In your opinion, did the apparent mistakes made by the PwC auditors in auditing Take-Two’s receivables and reserve for sales returns involve “negligence” on their part? Would you characterize the mistakes or errors as “reckless” or “fraudulent”? Justify your answers.
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task 7: See the “Take-Two Interactive Software, Inc.” case for this question.
Is it appropriate for audit firms to sharply discount their professional fees for developmental stage companies? Why or why not? What problems, if any, may this practice pose for audit firms?
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task 8: See the “Take-Two Interactive Software, Inc.” case for this question.
Do you believe that the relationship between Robert Fish and Ryan Brant was inappropriate? Explain.
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task 9:See the “Take-Two Interactive Software, Inc.” case for this question.
Should audit firms accept “ethically challenged” companies and organizations as audit clients? Defend your answer.
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task10: See the “Parker-Halsey Corporation” case for this question.
What type of professional service engagement was the assignment completed by the team of auditors led by Katelyn Light? Defend your answer. Which professional standards are applicable to such engagements?
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task 11:See the “Parker-Halsey Corporation” case for this question.
Compare the overall goals of the two teams of auditors in this case. In what ways were those goals similar? How did they differ?
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task12: See the “Parker-Halsey Corporation” case for this question.
Under what circumstances, if any, can an audit firm rely on the audit procedures performed by another audit firm?
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task 13:See the “Parker-Halsey Corporation” case for this question.
Identify the weaknesses in PHC’s inventory-taking procedures. What implications did those weaknesses have for the two teams of auditors?
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task 14: See the “Parker-Halsey Corporation” case for this question.
Do you believe that it was appropriate for Juan Suarez to insist that Dani Morgan and Tyler Christian not be informed of the complete nature of their PHC assignment? Why or why not?
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task 15: See the “Parker-Halsey Corporation” case for this question.
Assess the conduct of Katelyn Light, Dani Morgan, and Tyler Christian. Do you believe they behaved “professionally” during the PHC assignment? Defend your answer. Did any other accountants or auditors in this case behave less than professionally? Explain.
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task 16: See the “Madison Wells, Audit Manager” case for this question.
What steps should auditors take when they discover circumstances which were unknown to them at the audit report date that might have affected the report they issued?
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task 17: See the “Madison Wells, Audit Manager” case for this question.
Do you agree with Daniel Alanis that auditors are not entitled to make “honest mistakes”? Defend your answer.
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task 18: See the “Madison Wells, Audit Manager” case for this question.
Characterize the errors made by William Blackwell and Madison Wells as either “honest mistakes,” negligence, or recklessness. Defend each of your characterizations.
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task19: See the “Madison Wells, Audit Manager” case for this question.
While reviewing the long-term debt workpapers, neither Madison nor Alanis discovered the critical error Blackwell had made when testing Le Prix’s compliance with its debt covenants. What auditing standards, if any, dictate that audit workpapers be reviewed by senior members of an audit team? What is the overall nature and purpose of the audit workpaper review process and how thorough or detailed should workpapers be reviewed?
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task 20: See the “Madison Wells, Audit Manager” case for this question.
In your opinion, how should Madison have reacted to Alanis’s temper tantrum? What would you do in a similar set of circumstances?
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task 21: See the “Madison Wells, Audit Manager” case for this question.
When Alanis refused to discuss with Madison how Le Prix’s debt covenant violations had been addressed, what alternatives were available to her? Place yourself in her position. Which of those alternatives would you have chosen?
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task 22: See the “LocatePlus Holdings Corporation” case for this question.
The PCAOB’s auditing standards identify auditors’ responsibilities when addressing the possibility that fraud has materially impacted a public company’s financial statements. Which of those responsibilities did the L&H auditors fail to comply with during the 2005 and 2006 LocatePlus audits? For each item that you listed, explain how the L&H auditors failed to fulfill that responsibility.
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task 23: See the “LocatePlus Holdings Corporation” case for this question.
What is the purpose of predecessor–successor auditor communications? Which party, the predecessor or successor auditor, has the responsibility for initiating those communications? Briefly summarize the information that a successor auditor should obtain from the predecessor auditor.
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task 24: See the “LocatePlus Holdings Corporation” case for this question.
What are the primary responsibilities of a “concurring partner” under current U.S. auditing standards?
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task 25: See the “LocatePlus Holdings Corporation” case for this question.
What is the nature and purpose of a “letter of representations”? Comment on the quality or strength of the audit evidence yielded by a letter of representations.
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