Audit and Assurnace 5th Edition Solutions Essay - 11586 Words

CHAPTER 4 Engagement Planning LEARNING OBJECTIVES | Review Checkpoints | Exercises, Problems and Simulations | 1. List and describe the activities auditors undertake before beginning an engagement. | 1, 2, 3, 4 | 53, 54, 55, 62, 66 | 2. Identify the procedures and sources of information auditors can use to obtain knowledge of a client’s business and industry. | 5, 6, 7, 8, 9 | 52, 56, 59, 65 | 3. Perform analytical procedures to identify potential problems. | 10, 11, 12, 13, 14, 15 | 47, 48, 49, 51, 58, 63, 64 | 4. List and discuss matters of planning auditors should consider for clients who use computers and describe how a computer can be used as an audit tool. |†¦show more content†¦Observation--take a tour of the companys physical facilities, keeping eyes open for activities and things that should be reflected in the accounting records. The tour is the time to see company personnel in their normal workplaces. Study numerous sources--AIC PA industry accounting and auditing guides, specialized trade magazines and journals, registration statements and 10K reports filed with the SEC, general business magazines and newspapers (Business Week, Forbes, Fortune, Harvard Business Review, Barrons, and the Wall street Journal). 4.6 Find information about real estate valuation (tax appraisal) in the city and county tax assessorcollector files and about aircraft ownership from the Federal Aviation Administration. Names of licensed doctors in the state medical society directory. Assumed business names in the state or county assumed named registry. Liens on