Essays /

North Face Case Solution Essay

Essay preview

1. Should auditors insist that their clients accept all proposed audit adjustments, even those that have an “immaterial” effect on the given financial statements? Defend your answer.

The auditors should not insist that their clients accept all proposed audit adjustments. The auditor’s main duty is to provide reasonable assurance to verify the accuracy and compliance of client’s financial statements, to ensure that it conveys data and information of events occurred within the accounting period. When a misstatement is found, the auditor should decide whether the misstatement is material, considering both amount and quality perspectives. If it is a material misstatement, the auditor should mainly insist in making proper adjustments, because the misstatement will have a direct effect on financial statements and thus affect decisions of people who rely on i...

Read more


1 1.3 1997 1998 2 2.65 230 4 5 accept accomplish accord account accuraci achiev addit address adjust advis affect also alter amount answer appreci assess assist assur attent audit auditor authorit awar barter basement basi becom behavior besid blunder borden briefli case challeng chanc chang client communic compani complianc conceal conclus consid consult contact continu control convey cours critic data decid decis defend deloitt determin difficult difficulti direct discov document duti effect employe engag ensur entitl entri etc evalu even event evid execut explain explicit face fair feasibl fiedelman financi find found furthermor futur gaap get given goe gross help histori hope howev identifi immateri includ index indic individu inform insist instead intent intern isa issu januari key leak literatur made main make manag manipul margin materi may measur memo million minim misstat much need neither new normal north object occur opinion origin overal overst part pay peopl perform period personnel perspect plan portion prepar present prevent princip probabl profit proper propos provid public purpos qualiti reason record reduc refer regulatori relat releas reli requir respect respons result retain revis sale schedul servic signific simpli sinc solut statement strateg substitut summari supervis take team threshold thus transact undermin understand uneth use usual vanstraten verifi whether within without word workpap would