Describe what audit procedures you (the auditor) likely performed which resulted in your discovery of these...

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Describe what audit procedures you (the auditor) likely performed which resulted in your discovery of these...

Describe what audit procedures you (the auditor) likely performed which resulted in your discovery of these subsequent events.

The price of the Company stock increased from $35 per share on December 31, 2019 to $60 per share on March 1, 2020. It’s a volatile market!

business accounting

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Answer 1

Answer #1

Since, price of the stock is based on many complex internal and external factors and it is a volatile market, the auditor may obtain management representation regarding any underlying assumption for valuation of the share.

Also, depending on the internal events of the company, the auditor can decide the nature, time and extent of the audit procedures to be performed.

Though no additional audit procedures are required for price fluctuations in the volatile market, but some exceptional situations may suggest the need to perform additional audit procedures. Like insider trading etc.

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Answer 2

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Describe what audit procedures you (the auditor) likely performed which resulted in your discovery of these...

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