Q1 Because this is inventory week, will those of you who have been on inventory audits share some of your war stories for either the enjoyment of us old auditors or for the classmates who have never had the pleasure of auditing inventory? From your adventures, we will learn about the pitfalls and great plays of auditing inventory.

Q2 We have very hot topic this week, let us start discussing what the auditors must do to meet their obligations under professional auditing standards related to the observation of inventory?

Q3 Audit committees of public companies have many responsibilities in today’s financial reporting environment. Among those responsibilities are hiring the company’s external audit firm, overseeing the company’s financial reporting processes, and meeting with management to understand decisions around accounting and auditing matters and so forth. Please explore the Internet to find information on the audit committee made available by a corporation, and answer the following questions.

1. What are the committee’s responsibilities related to financial and business risks?

2. How many times does the committee meet on an annual basis?

3. What authority does the committee have in carrying out its responsibilities?

Q4 What is one contingency that would concern an auditor, and how would the auditor become aware of this contingency?

Q5 What are the highest priorities to consider when acquiring another company, business, or other organization?

Q6 Good initial discussion regarding priorities to consider when acquiring another company. Let's further discuss the reasons why a company would choose to consider an IPO. What would be the reasons not to consider an IPO?