ACC 821 Lecture Notes - Lecture 12: Beehive, Revenue Recognition, Audit Risk
20 Nov 2014
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Document Summary
Maintain pro skep and recognize the possibility of fraud throughout the audit: recognizing the possibility that fraud could exist, if responses to inquires of mgmt. are inconsistent, investigate. Other items recorded at fair values acc estimates afda. Entity is dominated by one individual owner manager. Other managers such as: controller accountant bookkeeper, anyone in charge of assets especially cash. Assurance engagements on greenhouse gas statements case 3410. Aug 20 performance of a review of financial statements. Entity has no audit requirements or it has been waived. Some assurance is required on the fs/ fi. For pe: owner managed businesses, can also be used for larger enterprises but not for public companies except for certain interim fs. A review engagement is normally undertaken when a company does not require audited fs, but would like to provide users with some level of assurance regarding the quality of the fs. Fs prepared using gaap including all disclosure requirements.
