Question

3-30 (Objectives 3-3, 3-4) Publicly traded companies must electronically file a variety of
forms or reports with the U.S. Securities and Exchange Commission (SEC), including
the Form 10-K, which includes the audited annual financial statements. The SEC makes
most of these electronic documents available on the Internet via EDGAR, which stands
for Electronic Data Gathering, Analysis, and Retrieval system. The primary purpose for
EDGAR is to increase the efficiency and fairness of the securities market for the benefit of
investors, corporations, and the economy by accelerating the receipt, acceptance, dissemination,
and analysis of time-sensitive corporate information filed with the agency.
a. Visit the SEC Web site (www.sec.gov) and use the link to “Company Filings Search”
(under “Filings”) to locate the Form 10-K filing for Google, Inc., for the year ended
December 31, 2015, to answer the following questions:
1. Who was Google’s auditor?
2. Did the audit firm issue a combined or separate report(s) on the financial statements
and on internal controls over financial reporting?
3. What type of audit opinion did the auditor provide for the financial statements?
4. What was the auditor’s opinion about internal controls over financial reporting?
5. What was the report date for the audit report?
b. Visit the PCAOB’s Web site (www.pcaob.org) and use the link to “Auditing” under the
heading for “Standards” to locate the PCAOB’s Auditing Standards. Search the links
to the Auditing Standards to answer the following questions:
1. Where would the auditor locate guidance about changes to the auditor’s report
if Google makes a change in accounting principle that is considered material?
Identify the appropriate section in the Auditing Standards and identify the relevant
paragraph(s) within that section that would be applicable to this situation.
Assume that Google properly reports the change in the financial statements.
2. Where would the auditor locate guidance to determine the effect on the auditor’s
report if he or she has substantial doubt about Google’s ability to continue as
a going concern? Identify the appropriate section and the relevant paragraph(s)
within that section that would be applicable to this situation.
3. Google’s Form 10-K contains information that is in addition to the financial statements
and related footnotes. Where would the auditor locate guidance that addresses
his or her responsibility for this other information and what is the auditor’s obligation
related to that information? Identify the appropriate section and the relevant
paragraph(s) within that section that would be applicable to this situation.

Answer 1

1.) Google's Auditor is "ERNST & YOUNG LLP", which is an INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM.

2.)The Audit firm has given Combined results, Combined financial statements and also an Internal control report for such a year.

3.) Auditor has given Unqualified opinion on Financial results of Google Inc.

4.) Auditor has given an Unqualified Opinion on Internal Control System over financial accounitng.

5.) The date of report is 11th February, 2016.

B part :-

AU Section 9420

Consistency of Application of Generally Accepted Accounting Principles: Auditing Interpretations of Section 420. Section 420, Consistency of Application of Generally Accepted Accounting Principles, paragraph .02, states: "The objective of the consistency standard is to ensure that if comparability of financial statements between periods has been materially affected by changes in accounting principles there will be appropriate reporting by the independent auditor regarding such changes." Section 420.02 refers to changes in methods that lessen the usefulness of financial statements in comparing the financial information of one period with that of an earlier period. Thus, the purpose of an explanatory paragraph about consistency in the auditor's report is to alert readers of the report not to make an unqualified comparison of the financial information for the two periods.

2) AS 2415: Consideration of an Entity's Ability to Continue as a Going Concern

This section provides guidance to the auditor in conducting an audit of financial statements in accordance with the standards of the PCAOB with respect to evaluating whether there is substantial doubt about the entity's ability to continue as a going concern.1,2 Continuation of an entity as a going concern is assumed in financial reporting in the absence of significant information to the contrary. Ordinarily, information that significantly contradicts the going concern assumption relates to the entity's inability to continue to meet its obligations as they become due without substantial disposition of assets outside the ordinary course of business, restructuring of debt, externally forced revisions of its operations, or similar actions. The auditor has a responsibility to evaluate whether there is substantial doubt about the entity's ability to continue as a going concern for a reasonable period of time, not to exceed one year beyond the date of the financial statements being audited (hereinafter referred to as a reasonable period of time). The auditor's evaluation is based on his or her knowledge of relevant conditions and events that exist at or have occurred prior to the date of the auditor's report. Information about such conditions or events is obtained from the application of auditing procedures planned and performed to achieve audit objectives that are related to management's assertions embodied in the financial statements being audited, as described in AS 1105, Audit Evidence.

3) AS 2710: Other Information in Documents Containing Audited Financial Statements

.01        An entity may publish various documents that contain information (hereinafter, "other information") in addition to audited financial statements and the independent auditor's report thereon. This section provides guidance for the auditor's consideration of other information included in such documents.

.02        This section is applicable only to other information contained in (a) annual reports to holders of securities or beneficial interests, annual reports of organizations for charitable or philanthropic purposes distributed to the public, and annual reports filed with regulatory authorities under the Securities Exchange Act of 1934 or (b) other documents to which the auditor, at the client's request, devotes attention.

.03        This section is not applicable when the financial statements and report appear in a registration statement filed under the Securities Act of 1933. The auditor's procedures with respect to 1933 Act filings are unaltered by this section (see AS 6101, Letters for Underwriters and Certain Other Requesting Partiesand AS 4101, Responsibilities Regarding Filings Under Federal Securities Statutes). Also, this section is not applicable to other information on which the auditor is engaged to express an opinion.1 The guidance applicable to auditing and reporting on certain information other than financial statements intended to be presented in conformity with generally accepted accounting principles is unaltered by this section (see AS 2701, Auditing Supplemental Information Accompanying Audited Financial Statements, and AS 3305, Special Reports).

.04        Other information in a document may be relevant to an audit performed by an independent auditor or to the continuing propriety of his report. The auditor's responsibility with respect to information in a document does not extend beyond the financial information identified in his report, and the auditor has no obligation to perform any procedures to corroborate other information contained in a document. However, he should read the other information and consider whether such information, or the manner of its presentation, is materially inconsistent with information, or the manner of its presentation, appearing in the financial statements.2 If the auditor concludes that there is a material inconsistency, he should determine whether the financial statements, his report, or both require revision. If he concludes that they do not require revision, he should request the client to revise the other information. If the other information is not revised to eliminate the material inconsistency, he should communicate the material inconsistency to the audit committee and consider other actions, such as revising his report to include an explanatory paragraph, including an appropriate title, describing the material inconsistency, withholding the use of his report in the document, and withdrawing from the engagement. The action he takes will depend on the particular circumstances and the significance of the inconsistency in the other information.

.05        If, while reading the other information for the reasons set forth in paragraph .04, the auditor becomes aware of information that he believes is a material misstatement of fact that is not a material inconsistency as described in paragraph .04, he should discuss the matter with the client. In connection with this discussion, the auditor should consider that he may not have the expertise to assess the validity of the statement, that there may be no standards by which to assess its presentation, and that there may be valid differences of judgment or opinion. If the auditor concludes he has a valid basis for concern he should propose that the client consult with some other party whose advice might be useful to the client, such as the client's legal counsel.

.06        If, after discussing the matter as described in paragraph .05, the auditor concludes that a material misstatement of fact remains, the action he takes will depend on his judgment in the particular circumstances. He should communicate the material misstatement of fact to the client and the audit committee, in writing, and consider consulting his legal counsel as to further appropriate action in the circumstances.