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Auditing

Carol's Bank Reconciliation

4-10 Carol's Bank Reconciliation Carol Stokke receives her April 6 bank statement showing a balance of $859.75; her checkbook balance is $954.25. The bank statement shows an ATM charge of $25.00, NSF fee of $27.00, earned interest of $2.75, and Carol's $630.15 refund check, which was processed by the IRS and deposited to her

Bank Reconciliation Preparation

Bank Reconciliation A local bank began charging $2.50 each month for returning cancelled checks. The bank also has an $8.00 maintenance fee if a checking account slips below $750. Donna Sands likes to have copies of her cancelled checks for preparing for income tax. She has received her bank statement with a balance of $535.8

Bank Fees and Bank Reconciliation

Bank fees are squeezing customers according to an article in The Record (Hackensack,NJ) dated April 20, 2006. Banks are having a hard time making money lending, so many are charging more and higher fees. Meanwhile, interest paid on interest-bearing checking accounts remains low.Kayla Siska received her bank statement from the Co

Bank of North America & Kinkus Publishing

Can you help me get started with this assignment? C1. Assume that you work for Bank of North America and that you have made a $20 million loan to Kinkus Publishing, which must be repaid at the end of this year. Kinkus has undertaken a major expansion, ant eh value of its assets when the loan comes due is expected to be eithe

Audit Procedures for the Revenue and collection cycle

What account balances are included in a revenue and collection cycle? What specific control procedures should be in place and operating in internal control governing revenue recognition and cash accounting? What assertions are made about classes of transactions and events in the revenue and collection cycle?

BANK RECONCILIATION

Adcock Plastics Company deposits all receipts and makes all payments by check. The following information is available from the cash records: MARCH 31 BANK RECONCILIATION Balance per bank $26,746 Add: Deposits in transit

Adjusting Entry - Interest Receivable

Adjusting Entries: Interest receivable at 1/1/06 was $5,000. During 2006 cash received from debtors for interest on outstanding notes receivable amounted to $6,000. The 2006 income statement showed interest revenue in the amount of $8,900. You are to provide the missing adjusting entry that must have been made, assuming reversin

Mesa Bank Lock Box Services

The Mesa Bank is offering your company the use of their lockbox services. They estimate that you can reduce your average mail time by 2 days and they can save you a combined clearing and processing time of 1.5 days by putting the checks into the clearing system sooner. The firm receives 320 checks a day on average written for $2

Accounts receivable, purchase receivables and total cost

The three primary accounting problems associated with accounts receivable are 1) _________ 2) __________ and 3)_________ of accounts receivable. A finance company or bank that purchases receivables from business is known as a ______________ Equipment with an invoice price of $20,000 was purchased and freight costs were $90

The IRS and Darryl Strawberry's audit for unreported income

The IRS audited the tax returns of Darryl Strawberry, a former major league outfielder. It contended that, between 1986 and 1990, Strawberry earned $422,250 for autograph signings, appearances, and product endorsements, but he reported only $59,685 of income. Strawberry attributed the shortfall to his receipt of cash for autogra

Please assist in performing a strategic audit of Hewlett-Packard, Inc.

I need assistance in performing a strategic audit, namely analyzing all strategy aspects of Hewlett-Packard, Inc. It has experienced both success and hard times and CEO changes in recent times. Please explain the following: ? Organization mission and vision ? Products and brands ? Organizational stakeholders ? CEO and exe

Tax Strategy Problem for John Gemstone under IRS Audit

Can you help me start the following case study? I:1-49 John Gemstone, a wealthy client, has recently been audited by the IRS. The agent has questioned the following deduction items on Mr. Gemstone's tax return for the year under review: - A $10,000 loss deduction on the rental of his beach cottage. - A $20,000 charitable

Accounts Receivable changes with bad debts

P14-8 Accounts receivable changes with bad debts A firm is evaluating an accounts receivable change that would increase bad debts from 2% to 4% of sales. Sales are currently 50,000 units, the selling price is $20 per unit, and the variable cost per unit is $15. As a result of the proposed change, sales are forecast to increas

Accounts Receivable & Collections

J&S Snowmobile manufactures and sales snowmobiles throughout the country. J & S has determined that through the establishment of local collection centers around the country, they can speed up the collection of payments by one and one-half days. Furthermore, the cash management department of his bank has indicated to them that

Sales increase, and terms are extended to customers

When sales increase, and terms are extended to customers, accounts receivable increases. Of course when purchasing goods from suppliers, payables increase. What makes the cash account drop when there are both receivables and payables on the books during the increased sales activity?

Corporate Risk: Measurement Techniques

I have to answer the questions below in 250 words. I have been reading the chapter and don't fully understand these questions. What is an audit committee? What is the function of an audit committee? How does an audit committee w/in your organization, or an organization that you are familiar with go about insuring compliance w

Peck report as an income tax refund receivable

Peck Co. reports a taxable and pretax financial loss of $400,000 for 2008. Peck's taxable and pretax financial income and tax rates for the last two years were: 2006..$400,000...30% 2007...$400,000...35% The amount that Peck should report as an income tax refund receivable in 2008, assuming that it uses the carryback prov

Audit risk and 100% audited accounts.

I would need answers to the two questions and not a copy from any web sites 1. Why do certain accounts have to be audited 100 percent? 2. Is any component of audit risk within the control of the auditor? Explain

Capital One Bank

The media are one of the most powerful sources of communication and has the ability to influence our behaviors and thought processes. Choose an advertisement that you feel is deceptive or manipulative in some way. Explain the product and why you consider the advertisement to be unethical.

Bank excess funds: evaluate profit and risk of three options for investment

A new client just deposited $300,000 in a corporate checking account. Idle money means missing out on profits, so we want to put the additional funds to good use as soon as possible. We've identified three potential options for using the additional funds?you should evaluate the profitability and risk implications of each of the

Requirements of a Valid Check for a Bank to Cash

If a check is filled out completely and endorsed, will a bank cash it without the account holders name and address located at the top left hand corner of the check? I was just wondering if it is a valid check with the account holders information listed on it.

SAS 106, AUDIT EVIDENCE: Write a report summarizing SAS 106.

Visit the AICPA website at the URL below. http://www.aicpa.org/Professional+Resources/Accounting+and+Auditing/Audit+and+Attest+Standards/Authoritative+Standards+and+Related+Guidance+for+Non-Issuers/auditing_standards.htm Print a copy of SAS 106 Audit Evidence. Write a report summarizing SAS 106. Your report should ad

Internal Audit Processes

Many companies have an internal audit staff to assess the adequacy of internal controls. Do you think your organization has an internal audit function? Or do you think your organization has outsourced this function to an external audit firm? Please include an explanation to support your answer.

Honoring a Note

Can you help me with the problems below? Exercise 9-6: Prepare journal entries to record these selected transactions for Vitalo Company. Nov. 1 Accepted a $6,000, 180-day, 8% note dated November 1 from Kelly White in granting a time extension on her past-due account receivable. Dec. 31 Adjusted the year-end a

Analyzing and journalizing notes receivable transactions

Please provide instructions on how to process the journal entries. A sample template of the link to a similar problem from the solution library would be helpful. Fundamental Accounting Principals, 18th Edition Wild, Larson, Chiappetta, McGraw-Hill Irwin Problem 9-5A: Analyzing and journalizing notes receivable transac

Anth Company has significant amounts of trade accounts receivable.

Anth Company has significant amounts of trade accounts receivable. Anth uses the allowance method to estimate bad debts instead of the specific write-off method. During the year, some specific accounts were written off as uncollectible, and some that were previously written off as uncollectible were collected. Anth also has