Essay about Interim Financial Information
1. Is David Robinson suggested compromise appropriate? Why or why not?
2. Do you believe that Zachariah Crabtree is a person of integrity? What about David Robinson? Defend both of your answers. Does Robinson have an impropriate relationship with Crabtree? Explain.
3. Identify the primary audit objectives for client’s year-end discretionary expense accruals. Is it permissible for companies to overstate period-ending expense accruals to make their financial statements more “conservative”?
4. Discuss the scope and nature of an auditor’s responsibilities during a review of client’s quarterly financial statements.
The American Institute of Certified Public Accountants is a …show more content…
In accounting, the term "accrual" refers to a journal entry where a revenue or expense item is recorded in the absence of an actual cash transaction. Discretionary expenses are non-essential expenses that take place to promote or enhance the company’s standing with its customers and employees.
The primary audit objective for client year-end discretionary expense accruals is stated in AU Section 342. AU 342 paragraph 4 states