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Cash Collections and Production: Thorton Company Example

I am doing something wrong as I keep coming up with numbers that are too small for the cash collections and I believe that the answer for #2 is D, but I would just like a breakdown of the problem to make sure I am doing it right. Thorton Company estimates its sales at 80,000 units in the first quarter and that sales will incr

Assigning Accounts Receivable

I need help. Please put in excel. Thank you. On April 1, 2010, Prince Company assigns $500,000 of its accounts receivable to the Third National Bank as collateral for a $300,000 loan due July 1, 2010. The assignment agreement calls for Prince Company to continue to collect the receivables. Third National Bank assesses a finan

Audit: Why is the Code of Conduct important to the profession?

The Code of Professional Conduct is very important for the auditing profession. The AICPA, State Boards, and other professional organizations spend a great deal of time and effort implementing, and reinforcing the ethical standards, and penalizing those who violate the ethical standards. Required: Why is the Code of Condu

Internal and External Auditors Duties

Please help getting started on some research on the topic of what internal and external auditors do covering the following items: *providing information to users of the audit like investors *providing information to business owners *meeting the needs of managers *responsibilities to the audit committee *evaluating what a

Notes Receivable in Gonzalez Company's December Trial Balance

"Included in Gonzalez Company's December 31 trial balance is a note receivable of $12,000. The note is a 4-month, 10% note dated October 1. Prepare Gonzalez's December 31 adjusting entry to record $300 of accrued interest, and the February 1 journal entry to record receipt of $12,400 from the borrower."

Stanley Bugg - bank financing, ownership rights and repossession

Stanley Bugg finally realized his dream and began operating Bugg's Bug Extermination as a sole proprietor. Stanley Bugg did not have the cash to purchase a truck, so he borrowed $10,000 from Sucker Bank & Trust. In exchange for the money, Stanley Bugg promised to pay the bank a monthly payment and entered into a security agree

Calculation of Accounts Receivable Balance

If the actual December 31st A/R balance was $12,000; projected sales in March are $50,000; 70% of sales are on credit; 60% of credit sales are collected in the month of sale and 40% are collected in the month after the sales, what is the projected accounts receivable balance on the pro forma balance sheet for the end of March?

Auditor Responsibility and Opinion Example Questions

1. The auditor's responsibilities with regard to audit works is usually up to the last date of field works. (True/False) 2. Name the various types of opinions expressed by an independent auditor. 3. List the three types of going concern issues. 4. Describe very briefly three conditions under which an auditor issue

Audit objectives for Wal-Mart financial reporting cycle for revenue

Audit Program Development. Based on the findings of the Internal Controls Questionnaire prepare a list of audit objectives for Wal-Mart Financial Reporting Cycle for revenue. Wal-Mart Stores, Inc. is a large chain of discount department stores, which has been branded as Wal-Mart. According to the Fortune Global 500, it is th

Short term financing with Bank Loans

Short term financing with Bank Loans The Hand-to-Mouth Company needs $10,000 loan for the next 90 days. It is trying to decide which of the three alternatives to use: Alternative A: Forgo the discount on its trade credit agreement that offers terms of 2/10, net 30. Alternative B: Borrow the money from Bank A, which has of

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

Populations and Sampling in Auditing

What is the importance of defining the population when performing audit procedures? How will this affect the sample size? How will incorrectly defining the population affect the sampling unit?

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