Discussions1-Module 1: Answer the following question (About 120 words)Who is responsible for...

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Discussions1-Module 1: Answer the following question (About 120 words)Who is responsible for initiating the communication between the predecessor and successor auditors? What type of information should be requested from the predecessor auditor?2-Module 2: Answer the following question (About 120 words)Explain why the auditor divides the financial statements into components or segments in order to test management’s assertions.3-Module 3: Answer the following question (About 120 words)Core Value Assignment:With the concepts of responsible stewardship and integrity in mind respond to the following questions.-What are management’s incentives for establishing and maintaining strong internal control?-What are the auditor’s main concerns with internal control?4-Module 4: Answer the following question (About 120 words)How are the desired confidence level, the tolerable misstatement, and the expected misstatement related to sample size?5-Module 5: Answer the following question (About 120 words)When a client does not adequately segregate duties, the possibility of cash being stolen before it is recorded is increased. If the auditor suspects that this type of defalcation is possible, what type of audit procedures can he or she use to test this possibility?6-Module 6: Answer the following question (About 120 words)Why is it important for the client to establish control activities over the classification of payroll transactions?7-Module 7: Answer the following question (About 120 words)How do the client’s controls over cash receipts and disbursements affect the nature and extent of the auditor’s substantive tests of cash balances?8-Module 8: Answer the following question (About 120 words)What are the types of subsequent events relevant to financial statement audits? Give one example of each type of subsequent event that might materially affect the financial statements.APA reference. Any sources including, but not limited to:Messier, W. F., Glover, S. M., & Prawitt, D. F XXXXXXXXXXAuditing & Assurance Services: A Systematic Approach (10th ed.). New York: McGraw-Hill/Irwin. ISBN: XXXXXXXXXXCheck for Turnitin.

Khushboo · Accepted Answer

Solution 1:
The successor auditor is accountable for starting the communication with the earlier auditor of the client. But the successor auditor ought to receive confirmation of the related client before contacting the former auditor. The questions or information that should be asked by the successor auditor with the former auditor of the client will be related to the integrity of the management of the client, disagreement with management over accounting and auditing related issues, the former auditor understanding of the change in the auditors. Thus in other words the communications should be made related to the previous engagement and the internal control and related to the integrity and objectivity of the client and its management and the other auditing related issues associated with the clients.
Solution 2:
The auditor of the company usually divides the financial statement of the company into components or segments in order to make the audit more manageable and quick. A component of the financial statement can be defined as the transactions process of the financial statement. This approach of the auditor allows the auditor to collect the evidences by examining the process of the related transaction through the accounting systems from their origin to the ultimate recording in the accounting journal and ledger. Thus the auditor can examine the accounting transaction of the company from the time it is initiated by the company till the time of final recording in the financial statement accounts of the company.
Solution 3:
The responsibility of implementing the internal control system is of the management of the organization. The incentive for implementing the internal control system is that it helps to eliminate the risk of fraud, theft and misrepresentation. Thus strong internal control ensures that the assets of the company are safeguarded and also ensures that the reliable information is generated for the decision making purpose and if the reliable information is not generated due to the weak internal control system then the management will not be able to make decision regarding the various issues.

Discussions 1-Module 1: Answer the following question (About 120 words) Who is responsible for initiating the communication between the predecessor and successor auditors? What type of information...

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