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Audit: GAAS, working papers, accepting engagement, predecessor auditor

5. Generally accepted auditing standards recognize two categories of evidential matter: underlying accounting data and corroborating information. In making an audit in accordance with GAAS: a. corroborating information is always required, while underlying accounting data may be gathered under certain circumstances. b. underl

The Farm Bank

These are the question that I need help answering: 1. Review your work and the model answer. What accounts for any noticeable differences between the two? (1 paragraph) 2. What alternatives are available to the Farm Bank? (1 paragraph) 3. What would you recommend and why? (1 to 2 paragraphs) 4. Provide justification (1

Possible audit adjustments: materiality levels

In your audit for calendar 2009, you found a number of matters that you believe represent possible adjustments to the company's books. These matters are described below. Management's attitude is that "once the books are closed, they're closed," and management does not want to make any adjustments. Planning materiality for the

bank transfer instructions, how should fund be postured

The Bondport file at the text website will help in the solution of the following church endowment fund case study. (This is an actual situation with the original market price data preserved.) In May 1990, Local Church had an endowment fund with a market value of about $750,000. This fund was managed by a bank trust department wi

Why does the bank do Debits and Credits in the opposite?

When you put money in the bank - it says CR. When you take out money - it says DR (your Debit card) Now go back and look at the Debit and Credit rules - it says when asset (money/cash) increase - you DR, when asset (money/cash) decrease - you CR. So - the Question is why is the bank doing Dr and Cr in the opposite?

Services, Professional Issue, GAAS, Materiality, Risk & Evidence

Answer briefly the following questions 1. Define auditing, attest, and assurance services. Provide two examples of each type of service. 2. What are the issues affecting the auditing profession? 3. List the three categories of GAAS. 4. Give three examples of qualitative factors that might affect the prelimina

Discuss the importance of the Audit Committee to assure independence.

The audit committee helps to assure independence. The audit committee is comprised of directors, not managers, and their job is to appoint, retain, oversee, evaluate and terminate the audit firm. I think this is important because the process is not administered by executive level management, but the Board of Directors. I think

What is an audit program

a. What is an audit program? b. Identify two tasks that need to be accomplished in the framework for developing an audit program. c. What essential information is generally documented in an audit program?

Detection Risk, Tests, Controls, Assumptions, & Judgment: M/C

Please help me answer these: 1. An inaccurate form of the audit risk model would show that: a. detection risk can be determined from audit risk, inherent risk, and control risk b. detection risk is inversely related to audit risk c. increases in control risk will cause decreases in detection risk d. audit

Presentation of cash when a bank overdraft is present.

Cash in bank of $10,000, restricted cash in a separate account of $3,000, and a bank overdraft in an account at another bank of $1,000 should report cash of: A) $9,000 B) $10,000 C) $12,000 D) $13,000 Please explain the answer.

Important information about Bank Reconciliation Statement

Consider the following information for Susan Supplies Store for the month of June. * Deposits in transits as of June 30, were $3,785.15. * Interest revenues earned was $1,300. * Bank service charges amounted to $48. * An error was discovered: The bank deducted from the Susan Supplies Store account a c

Audit Program Design

I need some help design tests of controls, substantive tests of transactions, and analytical procedures for the Payroll and Personnel cycle. I do not want it to merely focus on statistical procedures; but rather I should demonstrate an understanding of current industry practices including non-statistical procedures and integ

Gulf Stream Imports: effective rate of two financing options

In order to finance a shipment of Mexican pottery, Gulf Stream Imports is seeking a $500,000 one year bank loan. The Mercantile Bank requires that Gulf Stream Imports maintain a 20% compensating balance and requires four quarterly payments. The marine bank requires only a 10% compensating balance but requires twelve monthly paym

Definition, Advantages and disadvantages of the primary types of auditors

What are the advantages and disadvantages of the primary types of auditor? There are several types of auditors, the most common types of auditors are: ? Certified public accounting firms ? Government Accountability office Auditors ? Internal Revenue Agents ? Internal auditors Please explain the advantages and disadvant

Billings Container Company

Problem 17-40 Unit 9, Chapter 17 Rittenberg/Schwieger/Johnstone- Auditing 6e (Critique an Audit Report Qualified for a Scope Limitation) You are a senior auditor working for Rittenberg & Schwieger, CPAs. Your staff assistant has drafted the following audit report. You believe the scope limitation is significant enough to

Documenting Audit Findings in the Junior Auditor case

Most major accounting firms rely on three main revenue streams: Auditing services, Tax services & Business consulting. Since the Securities and Exchange Commission (SEC) requires publicly traded companies to be audited by an external CPA firm, auditing can be a significant part of most accounting firms' revenue. Review

The Benefits of Hiring an Internal Auditor

A client has an out-of-control system and a recommendation has been made to hire an internal accountant. Write a recommendation brief for the client in which you justify the benefits of using an internal auditor. Conclude your recommendation by referring a particular person for the job based on their background. Explain how t

ACP and Accounts Receivable

A company sells earnings forecasts for Japanese securities. Its credit terms are 2/10, net 30. Based on experience, 70 percent of all customers will take the discount. a. What is the average collection period for the company? b. If the company sells 1,500 forecasts every month at a price of $1,900 each, what is its average

Please Help on responsible for 3 parts

For your group project, consider American Express ( Using the guidelines established in Chapter 11 of your text, produce a Strategic Audit for American Express. As you produce your Strategic Audit, make sure to include all eight sections. IFAS, EFAS, and SFAS ta

Bank Lending Financing Foreign Operations

I have to answer the questions below in 250 words. I have been reading the chapter and don't fully understand these questions: Why is bank lending on the decline worldwide? How have banks responded to their loss of market share?

Notes Receivables, interest revenue and more (Gale Sondergaard Company)

(Reporting of Notes Receivable, Interest, and Sale of Receivables) On July 1, 2007, Gale Sondergaard Company sold special-order merchandise on credit and received in return an interest-bearing note receivable from the customer. Sondergaard will receive interest at the prevailing rate for a note of this type. Both the principal a

How to Improve IRS Audit Process: Example Problem

Every year federal income tax evasion resulted in a loss of approximately at least $300 billion and unpaid federal income and payroll taxes, estimated to exceed $120 billion. How would you suggest to IRS commissioner to improve the IRS's audit process and collection of unpaid taxes. Provide references.