Auditing and Assurance Services

1.59 Management Assertions

Your audit manager has asked you to explain the PCAOB assertions by using an account on the balance sheet of your audit client.

Required:

For the accounts receivable account, please define each of the PCAOB assertions, using the accounts receivable account to illustrate each assertion. You are encouraged to reference Exhibit 1.5 (located below) to help you answer this question.

2.63 Reporting Principle

The reporting principle requires auditors to express their opinion through the issuance of a written report.

Required:

Based on your reading in the chapter, document your understanding of the following topics related to the auditors’ report:

  • What is the purpose of the auditors’ opinion and report?
  • What are the major paragraph(s) in the auditors’ report on the examination of a public entity? What are the major contents of each of these paragraphs?
  • What are the four types of opinions that auditors can issue?
  • How does the concept of materiality influence the auditors’ report?

Between the two exercises, your written response paper should be 3-4 pages in length. Please type your assignment up in a Word document and follow APA format, according to the CSU-Global Guide to Writing and APA. Include a title page and reference page. Use two (2) outside academic sources other than the textbook, course materials, or other information provided as part of the course materials.

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