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?
An auditor is concerned with the balance sheet as of a particular date, such at 12/31. Sometimes events occur or become know subsequent to the balance sheet date and before the issuance of the audit report. An auditor's responsibility for subsequent events and related audit procedures is addressed in the AICPA's Codificat
Draw up the bank reconciliation statement of P. Nolan as at 30 June in order to reconcile the bank balance in the cash book with the balance in the bank statement. See attached file for full problem description.
Audit questions 1 Which of the following procedures would an auditor least likely perform before the balance sheet date? a. Confirmation of accounts payable. b. Observation of merchandise inventory. c. Assessment of control risk. d. Identification of related parties. 2 An auditor traced a sample of purchase orders and
Because of calamitous earthquake losses, Kipmo Company, one of your client's oldest and largest customers, suddenly and unexpectedly became bankrupt. Approximately 30% of your client's total sales have been made to Kipmo's during each of the past several years. The amount due from Kipmo-- none of which is collectible -- equals 2
Your firm has been hired as an outside auditor to conduct an audit on a growing software company that is getting ready to go public. The company has been in business for approximately five years, and the Controller position has had three different people in this time period. The main shareholder tells you the first Controller le
The following audit report was rendered on the financial statements of the Town of Maywood: We have audited the accompanying general purpose financial statements (but not the accompanying combining and individual fund statements and supplemental statistical data) of the Town of Maywood, (State), as of June 30, 20x1, and for
What are the steps that are required for an auditor to finalize the audit? Which steps are the most crucial to the outcome of the audit? How will these steps affect the final audit decision? What other types of engagements are auditors involved in besides auditing? What are the other types of reports that auditors will issu
Please help with the following problem. Provide at least 100 words in the solution. Most business transactions result from "arm's length' dealing. When parties to a transaction are related, the objectivity expected in unrelated bargaining may be lost. Any loss of objectivity may require reporting in the financial statement
Allied Bank was the holder of a 3-month note dated June 18th with a discount rate of 12%. The face value was $10,000. On July 20th, Allied Bank rediscounted the note at Trusted Bank at 11%. Discuss how to calculate how much Allied Bank loaned to the maker of the note and how much Allied would receive when the note was redisco
The following are 11 audit procedures taken from an audit program. 1. Foot the accounts payable trial balance and compare the total with the general ledger. 2. Examine vendors' invoices to verify the ending balance an accounts payable 3. Compare the balance in payroll tax expense with previous years. The comparison takes t