19-25 occasionally, public accounting firms are engaged to report on

FIND A SOLUTION AT Academic Writers Bay

19-25 Occasionally, public accounting firms are engaged to report on specified elements, accounts, and items of financial statements.
Required:
Discuss three types of reports that may be provided for specified elements, accounts, and items of financial statements.
Why should reports on the application of agreed-upon procedures to information be restricted to specified users?
 
19-27 In connection with a public offering of first-mortgage bonds by Guizzetti Corporation, the bond underwriter has asked Guizzetti’s CPAs to furnish it with a comfort letter giving as much assurance as possible on Guizzetti’s unaudited financial statements for the three months Page 748ended March 31. The CPAs had expressed an unqualified opinion on Guizzetti’s financial statements for the year ended December 31, the preceding year; they also performed a review of Guizzetti’s financial statements for the three months ended March 31. Nothing has come to their attention that would indicate that the March 31 statements are not properly presented.
Required:
Explain what can be stated about the unaudited financial statements in the letter.
Discuss other matters that are typically included in comfort letters.
 
19-29 Select the best answer for each of the following and explain fully the reason for your selection.
a. Which of the following is not typically performed when the auditors are performing a review of client financial statements?
(1) Analytical procedures applied to financial data.
(2) Inquiries about significant subsequent events.
(3) Confirmation of accounts receivable.
(4) Obtaining an understanding of accounting principles followed in the client’s industry.
 
b. Which of the following must be obtained in a review of a nonpublic company?
 
Engagement Letter
Representation Letter
1
Yes
Yes
2
Yes
No
3
No
Yes
4
No
No
c. A CPA who is not independent may perform which of the following services for a nonpublic company?
 
 
 
Complication
Review
1
Yes
Yes
2
Yes
No
3
No
Yes
4
No
No
 
d. When performing a review of a nonpublic company, which is least likely to be included in auditor inquiries of management members with responsibility for financial and accounting matters?
(1) Subsequent events.
(2) Significant journal entries and other adjustments.
(3) Communications with related parties.
(4) Unusual or complex situations affecting the financial statements.
e. The proper report by an auditor relating to summarized financial statements includes:
(1) A statement about the type of opinion expressed in the prior year.
(2) An adverse opinion.
(3) An opinion on whether the summarized information is fairly stated in all material respects in relation to the basic financial statements.Page 749
(4) No assurance on the information.
f. Concerning interim quarterly financial statements, management of public companies:
(1) Must engage CPAs to audit the statements.
(2) Must engage CPAs to review the statements.
(3) May choose to engage CPAs to review the statements.
(4) May not engage CPAs to become associated with the statements.
g. A proper compilation report on financial statements that omit note disclosures:
(1) Includes an adverse opinion.
(2) Includes a disclaimer of opinion on the accuracy of such note disclosures.
(3) Indicates that management has omitted such information.
(4) Indicates that note disclosures are not necessary for those not informed about such matters.
h. Which of the following forms of accountant association always leads to a report intended solely for certain specified parties?
(1) Compilation.
(2) Review.
(3) Examination.
(4) Agreed-upon procedures.
i. Which assertion is generally most difficult to attest to with respect to personal financial statements?
(1) Existence and occurrence.
(2) Rights and obligations.
(3) Completeness.
(4) Valuation.
j. Financial statements prepared following which of the following are most likely to be considered a special-purpose financial reporting framework?
(1) Generally accepted accounting principles.
(2) International Financial Reporting Standards.
(3) Financial reporting standards of a foreign nation.
(4) The cash basis of accounting.
k. In which of the following reports should a CPA not express negative (limited) assurance?
(1) A standard compilation report on financial statements of a nonpublic entity.
(2) A standard review report on interim financial statements of a public entity.
(3) A standard review report on financial statements of a nonpublic entity.
(4) A comfort letter on financial information included in a registration statement filed with the Securities and Exchange Commission.
l. Comfort letters to underwriters are normally signed by the:
(1) Independent auditor.
(2) Underwriter.
(3) Client’s lawyer.
(4) Chief executive officer.
 
19-33
Indicate whether a CPA may provide each of the following services, and whether independence is required, by placing a check in the appropriate box.
Services
May provide; Independence is Required
May provide; Independence is Not Required
May not provide
a.       Provide an opinion on whether financial statements are prepared following the cash basis of accounting.
 
 
 
b.      Compile the financial statements for the past year and issue a publicly available report.
 
 
 
c.       Apply certain agreed-upon procedures to accounts receivable for the purposes of obtaining a loan, and express a summary of findings relating to those procedures.
 
 
 
d.      Review quarterly information and issue a report that includes limited assurance.
 
 
 
e.       Perform an audit of the financial statements on whether they are prepared following generally accepted accounting principles.
 
 
 
f.       Compile the financial statements for the past year, but do not issue a report since the financial statements are only for the company’s use.
 
 
 
 

• WE OFFER THE BEST CUSTOM PAPER WRITING SERVICES. WE HAVE DONE THIS QUESTION BEFORE, WE CAN ALSO DO IT FOR YOU.
• Assignment status: Already Solved By Our Experts
• (USA, AUS, UK & CA PhD. Writers)
• CLICK HERE TO GET A PROFESSIONAL WRITER TO WORK ON THIS PAPER AND OTHER SIMILAR PAPERS, GET A NON PLAGIARIZED PAPER FROM OUR EXPERTS

QUALITY: 100% ORIGINAL PAPER – NO PLAGIARISM – CUSTOM PAPER

Why Choose Us?

How It Works

• Click on the “Place Your Order” tab at the top menu or “Order Now” icon at the bottom and a new page will appear with an order form to be filled.
• Fill in your paper’s requirements in the “PAPER DETAILS” section.
• Fill in your paper’s academic level, deadline, and the required number of pages from the drop-down menus.
• Click “CREATE ACCOUNT & SIGN IN” to enter your registration details and get an account with us for record-keeping and then, click on “PROCEED TO CHECKOUT” at the bottom of the page.
• From there, the payment sections will show, follow the guided payment process and your order will be available for our writing team to work on it.

About AcademicWritersBay.com

AcademicWritersBay.com is an easy-to-use and reliable service that is ready to assist you with your papers 24/7/ 365days a year. 99% of our customers are happy with their papers. Our team is efficient and will always tackle your essay needs comprehensively assuring you of excellent results. Feel free to ask them anything concerning your essay demands or Order.

AcademicWritersBay.com is a private company that offers academic support and assistance to students at all levels. Our mission is to provide proficient and high quality academic services to our highly esteemed clients. AcademicWritersBay.com is equipped with competent and proficient writers to tackle all types of your academic needs, and provide you with excellent results. Most of our writers are holders of master’s degrees or PhDs, which is an surety of excellent results to our clients. We provide assistance to students all over the world.
We provide high quality term papers, research papers, essays, proposals, theses and many others. At AcademicWritersBay.com, you can be sure of excellent grades in your assignments and final exams.