Ch 8

8-30
a) Read the minutes and compare. In the example the minutes referred to
minutes of previous meetings. Also the client should agree that they have
provided all minutes to you the auditor.
b)
Info relevant to audit

Action required

March
Increase in annual dividend
amount on the FSs

compare dividends paid to the

Expansion of ops in the northwest

check to see if expenses back this up

Potential Acquisition

determine likelihood of acquisition

EPA Investigation
Officer Bonuses

talk to the EPA about findings

See if they were paid

October
Sales fell 8%

Look for evidence in the FSs

Financing for Tectonic

compare with FSs

examine the Financing documents

Increase in Capital Expenditures

Look for evidence in FSs

Discarded Equipment

Determine action was properly done

Incentive Stock Option Plan

find out if it has been approved

Deficiencies in Internal Control

solutions they will take

discuss with management and

Resolution of EPA findings

resolutions

compare cost and need for any additional

c)
EPA investigation and payment of bonuses were both relevant to the 2013 audit.

8-31

1) 1
2) 1
3) 2
4) 4
5) 2
6) 2
7) 3
8) 2
9) 4
10) 1
11) 2