ACCT435-1202B-01 Auditing AssignmentName: Unit 5 Discussion Board Deliverable Length: 2–3 paragraphs Details: This is the first year that you have audited Hurst & Johnson Corporation. You discovered...

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ACCT435-1202B-01 Auditing
AssignmentName:Unit 5 Discussion Board
Deliverable Length:2–3 paragraphs
Details:This is the first year that you have audited Hurst & Johnson Corporation. You discovered that the company is carrying its property, plant, and equipment at appraisal values and determines depreciation on the basis of these values. This is considered a very large scope-limitation, and you have not been able to form an opinion on the financial statements taken as a whole.
  • Discuss the ethical issues involved with this situation.
  • Explain how you should handle this situation.
  • Explain what type of report you should issue and why.
The following rubric will be used for grading:
Grading Rubric
30%Discuss the ethical issues involved with this situation.
20%Explain how you should handle this situation.
40%Explain what type of report you should issue and why.
10%Comment on other students’ postings.
Objective:? Develop an auditor report attesting to management’s assertions regarding the effectiveness of internal controls and recognize situations that present potential ethical and legal issues and develop solutions for those issues.
Answered Same DayDec 20, 2021

Solution

Robert answered on Dec 20 2021
3 Votes
PROPERTY PLANT AND EQUIPMENT
This should be valued under IAS 16 which specifically describes the accounting treatment for the
assets, the valuation of the ca
ying amounts and the depreciation charges accruing out of the
same along with the losses on account of impairment if any. The firm needs to value PPE at
using either the cost value or the revaluation value.
The ethical issues that are implied in case where PPE are valued at appraisal values are subject to
severe discriminatory practices....
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