Auditing

Del green

case 2.4

1 recalculation- to ensure that calculations were made correctly

inquiry-to question individuals on their knowledge of any misstatement

reperformance-to ensure that procedures were followed properly

understanding-having a general understanding of what you are auditing

2 yes. Experts will be extremely useful in matters not specifically discussed in auditing standards.

3 no. He should have more thoroughly calculated the correct percentage.

4 yes. Had the 6.5 percent rate been applied the company's pension expense would have increased 120 million, and lowered pretax income by 6%.

lakeside

Two difficulties that auditors face in assessing materiality are the need to make a material versus not material and the need to weigh certain qualitative factors in doing so. Yes.

he could not have had the meeting without consent but could have reviewed the past audit of the company.

To no longer provide audit services to rogers

“The purpose of peer review is to assure that quality controls are being applied in conformity with american institute of certified public accountants (aicpa) Quality Control Standards.The following is involved in the peer review process when appraising a CPAfirm's quality control policies and procedures: (1) reviewing each organizational or functional level within the firm; (2) reviewing selected engagement working paper files and reports; and (3) reviewing documentation indicating the firm's compliance with membership requirements. At the completion of the peer review, the reviewer discusses the findings with the reviewee and issues a report. Sanctions may be imposed on deficient CPA firms including continuing professional education (CPE) training, censures and reprimands, fines, and suspension from membership.” (Barons accounting dictionary)

“Audit documentation related to planning, conducting, and reporting on the audit should contain sufficient information to enable an experienced auditor...