1.“Testing Methods” Please respond to the following:
- According
to the text, to minimize the risk of material misstatement, auditors
seek third- party verification of account balances by mailing customers
their statements. Discuss the advantages of positive and negative
confirmations, and ascertain whether or not email and oral confirmations
are acceptable to increase customer response rates. Support your
position. - Discuss the difference between substantive test of
transactions and substantive test of balances, and identify at least two
(2) situations when an auditor should test account balances. Support
your rationale with related examples of such circumstances
2. “Audit Wrap-Up” Please respond to the following:
- Create
a scenario that demonstrates specific ways in which management could
manipulate transactions impacting inventory values that the auditing
team might not detect. Recommend key strategies that the auditor could
implement in anticipation of such manipulation. Justify your response. - Discuss
the difference between a subsequent event and a subsequent discovery of
facts, and determine the auditor’s responsibility for each event after
the audit report is complete. Support your position.
3. “Segment and Interim Reporting” Please respond to the following:
- Determine
the major differences between U.S. GAAP and IFRS disclosure reporting
requirements related to each separately reportable operating segment.
Next, give your opinion as to whether either U.S. GAAP or IFRS
disclosures provide financial statement users the most useful
information for investment or credit decisions. Provide support for your
choice. - Speculate on at least three (3) accounting problems
that exist under U.S. GAAP related to interim financial reports. Next,
suggest at least one (1) approach to overcome each listed problem.
Provide a rationale for your response.
4. “Formation, Operation, Termination and Liquidation of Partnerships” Please respond to the following:
- Assume
that John, James, and Jane are considering creating a legal business
entity to develop and market their idea for a web application. Recommend
the most appropriate type of business activity (i.e., a general
partnership, a limited liability partnership, or a limited liability
company) for them to form. Provide a rationale for your response. - Determine
the main purpose of a statement of realization and liquidation, and
discuss the major information that the primary parties can gain from a
statement of realization and liquidation in order to grasp the major
events of the liquidation process. Next, suggest the most critical
information to disseminate to the partners and creditors during
liquidation. Justify your response.
5. “Community Efforts and Managing Public Relations (PR)” Please respond to the following:
- You
are a new PR intern at Apple. Apple is donating 200 iPads to a local
inner-city school to promote technology in education. As a PR intern,
you need to get the word out about this event. In your discussion post,
compose a tweet (a tweet is 140 characters or less) and a Facebook post
(200-250 words) creating awareness for the event.
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