We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy

ZZZZ Best Company, Inc.

The whole doc is available only for registered users
  • Pages: 2
  • Word count: 353
  • Category: Audit

A limited time offer! Get a custom sample essay written according to your requirements urgent 3h delivery guaranteed

Order Now

1. A review differs from an audit because a review does not allow the auditor to test or observe internal controls and assess control risk. According to AS 5, effective internal control over financial reporting provides reasonable assurance regarding the reliability of financial statements. As a result, an auditor cannot provide reasonable assurance regarding the reliability of the financial statements by just completing a review; they must complete a full audit. An auditor can only provide limited assurance by completing a review.

2. There are a few limitations of the evidence that ZZZZ’s Best’s auditors obtained through obtaining third-party confirmations, reviewing available documentation, performing analytical procedures to evaluate reasonableness of revenues and visiting selected restoration sites regarding the management assertion of occurrence. First, obtaining third-party confirmations, reviewing paperwork and performing analytical procedures based on information given to the auditor by the company’s management is not reliable enough to prove that the contracts actually occurred. Tom Padgett made the confirmations and management provided the paperwork, all of whom were involved in the fraud.

3. Apparently reliable evidence such as verification of payment may lead an auditor to an improper conclusion because these documents can be easily falsified. The auditor should always look to verify these payments based on outsiders/third parties.

4. The purpose of predecessor-successor auditor communications is to help an audit firm determine whether to take on a new client or not. This communication would allow for the auditor to decide if it has the capability to serve the client, and also find out about any prior issues that may have occurred during previous audits such as fraud or disagreements between management and the other auditor.

5. The confidentiality agreement that Minkow required Ernst & Whinney to sign improperly limited the scope of the ZZZZ Best audit. According to AS 5, the auditor should always withdraw from the engagement or disclaim an opinion if there are restrictions on the scope of the audit. 6. There are not any professional standards that require auditors to perform particular procedures when reviewing a client’s pre-audit report and post-year-end press releases.

Related Topics

We can write a custom essay

According to Your Specific Requirements

Order an essay
Materials Daily
100,000+ Subjects
2000+ Topics
Free Plagiarism
All Materials
are Cataloged Well

Sorry, but copying text is forbidden on this website. If you need this or any other sample, we can send it to you via email.

By clicking "SEND", you agree to our terms of service and privacy policy. We'll occasionally send you account related and promo emails.
Sorry, but only registered users have full access

How about getting this access

Your Answer Is Very Helpful For Us
Thank You A Lot!


Emma Taylor


Hi there!
Would you like to get such a paper?
How about getting a customized one?

Can't find What you were Looking for?

Get access to our huge, continuously updated knowledge base

The next update will be in:
14 : 59 : 59