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Wilmont Electronics: memo describing corrective controls after audit issues.

Evaluate how to organize the business for managerial control based on accounting information. Wilmont Electronics' profit has been less than expected for the past several quarters. After an internal audit, it was determined that inventory losses have been rising over the past year, which has accounted for the majority of the

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.

Different Types and Uses of Audit Reports

Please discuss the following: a. What are the different types of audit reports and when should each be used? b. In what types of situations would an auditor be allowed to issue an unqualified audit report? c. To what extent is the auditor liable for misstatements in the financial statements of the audited company?

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

Changes to accounts receivable

Tara's Textiles currently has credit sales of $360 million per year and an average collection period of 60 days. Assume that the price of Tara's products is $60 per unit and that the variable costs are $55 per unit. The firm is considering an accounts receivable change that will result in a 20% increase in sales and a 20% increa

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

Size of accounts receivable

A company sells 4,500 units of its perfume collection each year at a price per unit of $400. All sales are on credit with terms of 2/10 net 40. The discount is taken by 60 percent of the customers. What is the amount of the company's accounts receivable? In reactions to sales by its main competitor is considering a change in

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.

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