Accounting and Finance Foundations

Unit 13

Accounting and Finance Foundations Unit 13: Auditing 1002

Auditing

Chapter 30

Analytical Procedures

Answer each of the following questions. Use a separate sheet of paper to record your responses.

1. The goal of performing analytical procedures is to provide support or evidence that the business’s
   financial records meet five different requirements. Explain these requirements.


2. What analytical procedures could an auditor use to evaluate a business’s assets?


3. What analytical procedures could an auditor use to evaluate a business’s liabilities?


4. What analytical procedures could an auditor use to evaluate a business’s equity?


5. Conduct online research to identify two businesses (besides Enron and WorldCom) that have been
   accused of accounting fraud in the last 15 years. What are the names of the companies? What type(s)
   of accounting fraud did each company supposedly commit? What have been the consequences of the
   fraud allegations for each company?


6. What is the connection between Generally Accepted Accounting Principles (GAAP) and auditing?

Student Assignment

30.4.1