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
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?
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
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
Read about the CAMELS rating system. In a 2 page analysis report critically review the CAMELS rating system for assessing bank performance. Also explain why it is fast becoming a global standard adopted by central banks. Do you believe this is the correct tool to use for evaluating banks? Support your position with justifica
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.
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?
Mike is the sole shareholder of Cuteness Dog, Inc. ("CDI"). He is operating his company as a sub chapter S corporation. It is a small manufacturing company that produces a complete line of accessories for dogs such as collars, clothing, play toys, treats, etc. Many of the designs are unique and have been patented by CDI. In
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
Compare the relationships among auditor, client, and external users. How do professional standards for CPAs govern these relationships?
See attachment for full problem Term Modification with Gain-Debtor's Entries On December 31, 2007, the Firstar Bank enters into a debt restructuring agreement with Nicole Bradtke Company, which is now experiencing financial trouble. The bank agrees to restructure a 12%, issued at par, $2,000,000 note receivable by the foll
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
What are the main concerns when analyzing a company's accounts receivable? What information other than the usually available financial statements, should you collect as part of your overall analysis?
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
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
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
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
How is the write-off of a bad debt handled on the tax return? How must the debtor handle the forgiveness of the debt? Why?
If a small business claims a loss in the fifth year of business, will this be an audit request to ensure that a business is in business for profit?
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
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
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
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
What are the risks and liability factors in an audit? What are the implications to the auditor? What are the implications to the organization? How can the auditor mitigate these risks and liability factors?
For your group project, consider American Express (http://home3.americanexpress.com/corp/?source=cmhp_inav-aboutus). 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
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?
Description of Best Practices Project: ? The job is 'risk manager' at a bank. Write a job description. Include appropriate specifications. This should describe what qualifications the ideal candidate should have. ? Describe how you would recruit for applicants for this position. You should consider internal as well as
Can someone please explain VAT Taxes and VAT Receivable? Thanks.
(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
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.