inancial Statement Homework Instructions This assignment is designed to give you

ID: 2328211 • Letter: I

Question

inancial Statement Homework Instructions This assignment is designed to give you some familiarity with audit reports completed using different auditing standards. Also, it is designed to give you practice completing an audit plan and following the kind of instructions you will see in the case study Due in Blackboard at 1:00PM on Wednesday, September 5. General: You will need to find these financial statements on the internet: . General Electric Annual Report 2017 . BMW Annual Report 2017 . City of New Bedford, Massachusetts CAFR 2017 Cargill Annual Report 2018 Most companies provide their reports in the Investor Relations section of their website. I've included the fron t page of the 3 financial statements at the end of this document for reference. Complete and submit the following 3 documents for this assignment: FS Homework Plan FS Workpaper DQ Workpaper All student work must be in purple, blue, or green font to distinguish it from the questions. Do not change the color or font type of the questions or instructions on the plan or workpapers. Documents need to have your full name and the name of assignment. Follow the naming convention below: Jones Martha FS Homework Plan.docx An example of the FS Homework Plan has been provided with some the steps filled out. Use it as an example of how to fill out yours, but be mindful of the initials and dates used on it as yours will be different. Initial and date all steps using 8/31/18 as the date. Initial and date the top right coner in the box. Reference the 2 workpapers at the appropriate steps on the Plan. Workpapers: Answers should be written directly underneath the numbered questions. Use complete sentences where indicated. Initial and date the top right corner in the box, using the same date as the FS Homework Plan.

Explanation / Answer

Q1. Ans. Board of Director / Management of the Company is responsible for setting/creating the accounting Standard used.

Q2.Ans. Auditor (Registered Public Accountant) of the Company is responsible for setting/creating the accounting standard used.

Q3 Ans.

Q.4 Ans. As a privately held company, make detailed financial information available only to authorized institutions.

Q5. Ans. Three element common in all audit reports are-

Q.6 Ans. Two Element unique in all audit reports are –

1. Introductory Paragraph that identified the financial statement audited.

2. Opinion on the financial statement.

Q.7 Ans. Part 1-

Accounting Standards are generally accepted accounting principal and polices. This are some common set of principal, standards and procedures that defines basis of accounting policies and practices.

Objective of Accounting Standards is to provide financial information to its user in the useful way to help them to take the appropriate decision.

Preparation and presentation of Financial Statement is the responsibility of Management (Board of Director). So this is the responsibility of Management to prepare the financial statement by following the generally accepted policies and principals i.e. Accounting Standards.

Further various law which govern the company also makes this mandatory for companies to follow the accounting standards. Like Companies law, Security and Exchange law etc.

Part 2 –

Auditing Standards are set of principles and procedures to perform the audit. This are set of guidelines to auditors to insure the quality of audit performed.

Objective of Auditing Standards are to give guidance to auditor for the performance of audit procedure followed to ensure accuracy, consistency and reliability of audit conducted.

This is the responsibility of auditor to perform the audit in accordance with the auditing standards applicable. Auditor need to plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.

This standards are issued by Auditing and Assurance Bodies and mandatory applicable to its members. Like International Standards issued by International Auditing and Assurance Board.