Auditing – Assignment and Discussion questions Page 1 of 1

Chapter 5

Assignment questions (Ch5)

P5-6 [LO3]
Refer to Exhibit 5.3. List the phases of the audit opinion formulation process. What are the primary activities
within each of the five phases?

P5-9 [LO5]
Depicted below is footnote #5 for Boeing, Co. for FYE 2021 and 2020, which includes component amounts
making up the net amount of accounts receivable on the balance sheet.

a. Of the components, which typically have a debit balance?

b. Of the components, which typically have a credit balance?
c. Describe how each of the five management assertions—(i) existence, (ii) completeness, (iii)
valuation, (iv) rights and obligations, and (v) presentation and disclosure—relate to the
components making up the net balance sheet amount for accounts receivable for Boeing.

Note 5—Accounts Receivable, net

Accounts receivable at December 31 consisted of the following:

Note 1

Note 2

Note 2

Source:https://s2.q4cdn.com/661678649/files/doc_financials/2021/ar/The-BoeingCompany-2021-
Annual-Report.pdf

Note 1: Includes foreign military sales through the U.S. government

Note 2: Excludes U.S. government contracts

Discussion questions

P5-36 [LO8] (P5-37 for 11 edition, P5-36 for 12 edition)

Refer to Exhibit 5.11. Explain how the factors in the first column affect the auditor’s decision about
substantive testing.