Ch 17 Sections of Standard Audit Report for A Nonpublic Company Discussion

Easy accounting hw, can be done with google within an hour or two. Please do not copy and paste answers from google however. There is also a few discussion questions that need to be done.
The questions are down below and discussion questions are down below. Please complete this in a word document.
Discussion 1
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What is insolvency?
Toshiba Corp. insolvent? Explain your answer.
What is Toshiba’s relationship to Westinghouse Electric? How did Westinghouse’s bankruptcy filing lead to Toshiba’s financial difficulties? You may refer to the related article to assist with this answer.
Near the end of the article, the author writes that Toshiba’s auditors “have refused to approve financial statement this year.” Do auditors “approve” financial statements? Explain and comment on the concern about public understanding of the role of an auditor and an audit opinion.
Discussion 2
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Describe the standard form of audit report currently used in the U.S. How long has this form of report been in use?
What changes has the Public Company Accounting Oversight Board (PCAOB) proposed to audit report? You may access the proposed SEC requirement to implement the requirement at https://www.sec.gov/rules/pcaob/2017/34-81187.pdf Read Parts I and II. A. (Summary). You may also use the links in the article to access the PCAOB’s process for implementing these new requirements.
In the article, the author describes the current pass/fail audit report. “A thumbs-up states that the accounting firm obtained “˜reasonable assurance’ that the financial statements are “˜free of material misstatement’ and represent the company’s condition “˜fairly.’ A thumbs-down casts doubt on whether the company can “˜continue as a going concern.’ Are these the only two options for forms of an audit report under current requirements? Explain your answer.
There is a correction noted at the bottom of this article and copied here. Why is this an important distinction? CORRECTION: Independent accountants audit a company’s financial statements. An “Intelligent Investor” column Aug. 18 incorrectly said independent auditors prepare a company’s financial statements.
Chapter 16
16-1. Identify three revenue accounts that are verified during the audit of balance sheet accounts; also, identify the related balance sheet accounts.
16-2. How are analytical procedures used in the verification of revenue?
16-3. Identify three items often misclassificd as miscellaneous revenue.
16-27. In your audit of the financial statements of Wolfe Company for the year ended April 30, you find that a material account receivab le is due from a company in reorganization under Chapter 11 of the Bankruptcy Act. You also learn that on May 28 several former members of the bankrupt company’s management fonned a new company and that the new company had issued a note to Wolfe Company that would pay off the bankrupt customer’s account receivable over a four-year period. What presentation, if any, should be made of this situation in the financial statements of Wolfe Company for the year ended April 30? Explain.
16-31. The auditor’s opinion on the fairness of financial statements may be affected by subsequent events.
Define what is conunonly referred to in auditing as a subsequent event, and describe the two general types of subsequent events.
Identify those auditing procedures that the auditor should apply at or near the completion of fieldwork to disclose significant subsequent events.
16-33. Justin Kealey, CPA, is auditing Tustin Companies, Inc. Kealey has accumulated known and likely misstatements for the current year to evaluate whether there is a sufficiently low risk of material misstatement of the financial statements to issue an opinion. However, Kealey notes that there are several misstatements that have been carried over from prior years.
Distinguish between the iron curtain and the rollover approaches to considering the misstatements from prior years.
Describe how SEC Staff Accoullting Bulletin No. 108 requires auditors to consider misstatements carried over from prior periods.
16-34. On July 27, 20X0. Arthur Ward, CPA, issued an unqualified audit report on the financial statements of Dexter Company for the year ended June 30, 20X0. Two weeks later, Dexter Company mailed annual reports, including the June 30 financial statements and Ward’s audit report, to 150 stockholders and to several creditors of Dexter Company. Dexter Company’s stock is not actively traded on national exchanges or over the counter. On September 5, the controller of Dexter Company informed Ward that an account payable for consulting services in the amount of $170,000 had inadvertently been omitted from Dexter’s June 30 balance sheet. As a consequ