You have been asked to prepare a brief presentation on the nature and purpose of the auditors' opinion for your investment club. The club members would like your presentation to answer these questions: a. How is the "scope" of an audit determined? What role should the auditors' fee play in setting the scope? b. How can the a
During the course of an audit, the auditor examines a wide variety of documentation. Listed below are some forms of documentary evidence and the sources from which they are obtained. 1. Bank statement sent directly to the auditor by the bank. 2. Creditor monthly statement obtained from client's files. 3. Vouchers in client'
Bank earnings in non-interest income and non-interest expenses. See the attached bank balance sheet.
E7-6 Leng Xiong is unable to reconcile the bank balance as of January 31, Leng's reconciliation is shown here: Cash Balance per bank = $3,660.20 Add: NSF check = 370.00 Less Bank Service Charge = 25.00 Adjusted Bank Balance per bank = $4,005.20 Cash Balance per books =
1. Giving value to clients is absolutely essential to especially auditors. Your client, a public company in the jewelry business, is looking to you as their consultant, for suggestions to improve their profit. 2. Inventory Procedures Using Computer-Assisted Audit Tools and Techniques : In your discussion Explain the pro
1. Explain the process and benefits of audit sampling. 2.Assess risks inherent to selected transaction cycles.
Accounts receivable are $45,000 and are directly proportional to total sales. The sales forecast for next year is $125,000, which represents a 5% growth over the current year. The forecast accounts receivable would be:
Why might an advertising agency use job costing for an advertising campaign by Pepsi, whereas a bank uses process costing to determine the cost of checking accounts withdrawals?
Please, see attached file. 4-3 Why might an advertising agency use job costing for an advertising campaign by Pepsi, whereas a bank uses process costing to determine the cost of checking accounts withdrawals? 4-14 When Might a company use budgeting cost rather actual costs to compute direct labor rates? 17-3 Explain equi
Discuss how you would perform preliminary analytical procedures and recommend ways to mitigate engagement risk and audit risk.
1. Discuss how you would perform preliminary analytical procedures and recommend ways to mitigate engagement risk and audit risk. 2. Analyze elements of the audit planning process and explain how you would prepare an audit program.
I need help with the questions 1 to 5. Thanks. Please see the attached file.
Acknowledging revenue and estimating future bad debts - please see attachment. Rationale It is important to understand how companies record revenue. The timing of the entry is important, and the rules related to the timing of revenue recognition must be followed to conform to GAAP. Also, it is important to understand how to
For the SLP project, we are going to perform a strategic audit of McDonald's Company. Assignment Please write a 2 page report, answering the following questions: Identify Mission/Vision/Major Goals Identify Stakeholders Analyze whether stakeholders' goals are part of the company major goals
For the SLP project, we are going to perform a strategic audit of McDonald's Company. Assignment Please write a 2 page report about strategic choices that McDonalds has made. Business strategy Corporate strategies Functional Strategies Global Strategies Writing Style Please use a formal paper format, with
Need help with solution. Journalize entries to record allowance for doubtful accounts. Please use attached Excel and follow the instructions. Exercise E9-2 Journalize entries to record allowance for doubtful accounts using to different bases. The ledger of Elburn Company at the end of the current year shows:
This file answers various report situations. Including such situations as: 1. What kind of opinion should the auditors write for each separate case? 2. What other modification(s) or addition(s) to the standard report is (are) required for each separate case?
The balance per the bank ststement on 10.31.06, was 18280. Outstanding checks were: n0.62 for 326.75, no.183 for 150.00, no. 284 for 253.25, no. 862 for 190.71, no. 863 for 226.80, and no. 864 for 165.28. Included with the statement was a credit memorandum of 300.00 indicating the collection of a note receivable for Stupendous C
***Getting ready for a final, please only sign out if confident about the answers that will be provided*** 5.Which one of the following financial ratios has a numerator and denominator whose amounts should change by approximately the percentage from year to year? a.quick ratio. b.current ratio. c.accounts payable t
Please see attached file for full problem description. How will the different methods affect the audit? Matched Random Sampling - Cluster Sampling - Stratified Sampling
B. Explain why auditors translate audit assertions into specific audit objectives when developing an audit program. c. If you are auditing the existence and occurrence assertion, what specific audit objectives should be accomplished by developing an audit program? Explain the purpose of each audit objective. d. If you a
Write the "audit approach" portion of the case, organized around these sections: Objective: Express the objective in terms of the facts supposedly asserted in financial records, accounts, and statements. Control: Write a brief explanation of desirable controls, missing controls, and especially the kinds of "deviations" that
Risk assessments and audit strategies. See attached file for full problem description. The following risk factors were identified by various audit teams during the audit of their clients. 1. The client has a strong control environment and good controls over the existence of inventory. 2. The client is in an industry
Sidney Capstan attributed much of the business' success to its no-frills policy of competitive pricing and immediate cash payment. The business was basically a simple one--the firm imported cars at the beginning of each quarter and paid the manufacturer at the end of the quarter. The revenues from the sale of these cars covere
See attached file for full problem description.
See attached file for full problem description.
I don't know how to prepare a cash book and a bank reconciliation statement.
The factoring department of Inter American Bank (IAB) is processing 100,000 invoices per year with average invoice value of $1,500. IAB buys the accounts receivable at 4 percent off the invoice value. The average collection period is 30 days. Currently 2 percent of the accounts receivable turns out to be bad debt. The annual interest rate is 10 percent. The annual operating expense of this department is $400,000. What is the gross profit before interest and tax for the factoring department of IAB?
The factoring department of Inter American Bank (IAB) is processing 100,000 invoices per year with average invoice value of $1,500. IAB buys the accounts receivable at 4 percent off the invoice value. The average collection period is 30 days. Currently 2 percent of the accounts receivable turns out to be bad debt. The annual int
The following items were discovered during the audit of the Cash account. For each item identified: a. Indicate the audit procedure that most likely would have led to the discovery of the error. b. Identify one or two internal controls that would have prevented or detected the misstatement or irregularity. Audit Findings 1.
Milner Corp. uses the allowance method to account for uncollectibles. On October 31, it wrote off a $1,000 account of a customer, C. Schaub. On December 9, it receives a $200 payment from Schaub. 1. Prepare the journal entry or entries for October 31. 2. Prepare the journal entry or entries for December 9:
Mesa Electronics, located in Phoenix, is attempting to determine if it should set up a lockbox collection system for its Northeastern customers. Currently the firm receives an average of 350 payments per working day (assume 250 working days per year) from that section of the country. These payments provide an average daily colle
Should an audit firm use the same audit program for all companies in the same industries?