Best Case Questions

It idler point out shrinkificant matters of the fiscal statements but does non provide arrogance of their accuracy. Because revues are more often than not not as rigorous as examines, considerably less(prenominal) assure is typically collected in a revue than in a compar competent scrutinize engagement. The issue with ZZZZ silk hat case is that the auditors survey was not comfortable enough to review each literal misstatements on the pecuniary statements. 3. SAS 106 (AU 326), Audit Evidence, specifically identifies the principal worry self-confidences that underlie financial statements.The reality/ circumstance assertion was oddly critical for ZZZZ take ups damages payoff contracts. ZZZZ trumps auditors curbed third-party confirmations to don the contracts, reviewed available documentation, performed analytical procedures to evaluate the foresight of the revenues recorded on the contracts, and visited selected income tax return sites. * What were the li mitations of the express that these procedures provided with insure to the guidance assertion of existence/ event? 8 points) The limitations of the evidence that these procedures provided with regard to the counsel assertion of existence/occurrence was that Minkow insisted on Ernst Whinney to sign a stock confidentiality agreement where it declared that Ernst Whinney go out not be able to make any follow-up name calls to any contractors, indemnification companies, the building owner, or other individuals conglomerate in the riposte contract.This restriction efficaciously prohibited the auditors from corroborating the indemnification restoration contracts with breakaway third parties. 4. George Greenspan testified in advance Congress that one and only(a) method he used to audit the insurance restoration contracts was to verify that his guest actually legitimate payment on those jobs. * How can much(prenominal) on the face of it sure evidence current of air an au ditor to an haywire conclusion? (6 points) In Greenspans situation, his apparently reliable evidence was not from single-handed third party.When Greenspan confirm the existence of ZZZZs insurance restoration contracts, he contacted turkey cock Padgett who at the succession was an active and automatic participant in Minkows dishonest schemes. 5. Re Predecessor-switch auditors * What is the direct of predecessor- inheritor auditor communication theory? * Which party, the predecessor or successor auditor, has the responsibleness for initiating these communications?The successor auditor should obtain tuition from the predecessor auditor that will assist the successor auditor in determining whether to accept the engagement. Matters subject to the head should include information that might give up on the virtue of management, disagreements with management as to accounting principles, auditing procedures, or similarly prodigious manners, communications to those charged wit h brass section regarding juke and illegal acts by clients, communications to management and those charged with governance regarding signi?