4-58 (Audit Assessment of Materiality) The audit report provides reasonable assurance that the financial statements are free from material misstatements. The auditor is put in a difficult situation because materiality is defined from a user viewpoint, but the auditor must assess materiality in planning the audit to ensure that s
Why is monitoring accounts receivable important? What is the best way to monitor it?
Use the following data for questions 1 and 2 Quinn Company's bank statement at January 31 shows a balance of $13,360, while the ledger account for Cash in Quinn's ledger shows a balance of $12,890 at the same date. The only reconciling items are the following: ? Deposit in transit, $890. ? Bank service charge, $24. ? NSF c
A. How much did Merrill Lynch disburse per day to New York State customers? b. What was the total gain to Merrill Lynch over the 28 months, assuming an interest rate of 8 percent? c. What was the present value of the increase in float if the benefits were expected to be permanent? d. Suppose that the use of remote banks had involved Merrill Lynch in extra expenses. What was the maximum extra cost per check that Merrill Lynch would have been prepared to pay?
Float Management. Some years ago, Merrill Lynch increased its float by mailing checks drawn on West Coast banks to customers in the East and checks drawn on East Coast banks to customers in the West. A subsequent class action suit against Merrill Lynch revealed that in 28 months from September 1976 Merrill Lynch disbursed $1.25
What are the implications of having the same person performing accounts payable and accounts receivable functions?
A Company budgeted sales on account for $120,000 for July, $211,000 for August, and $198,000 for September. Collection experience indicates that none of the budgeted sales will be collected in the month of the sale, 60% will be collected the month after the sale, 36% in the second month, and 4% will be uncollectible. The cash re
P1-2A Information related to Holland Company for 2002 is summarized below. Total credit sales $2,100,000 Accounts receivable at December 31 840,000 Accounts receivable written off 38,000 Instructions (a) What amount of bad debts expense will Holland Company report if it uses the direct write-off method of accounting for
The Case of Harley-Davidson - A Strategic Audit I. Current Situation A. Current (2002) Performance and Brief Case Abstract Harley-Davidson, Inc., hereinafter referred to as HD, celebrated their 100th anniversary in 2003. As impressive as this is in and of itself, even more impressive is the continued long and mostly
(See attached file for full problem description) --- Gigantic Company is a very profitable small business. It has not, however, given much consideration to internal control. For example, in an attempt to keep clerical and office expenses to a minimum, the company has combined the jobs of cashier and bookkeeper. As a result,
Question #1 Thompson Wood Products has credit sales of $2,160,000 and accounts receivable of $288,000. Compute the value of the average collection period. Question #2 What is operating and financial leverage. How are they used?
What role is Peoples.com playing in the distribution of these insurance products: auto, home, and other personal insurance. Visit the Peoples Web site. What is the length of the channel the bank uses to distribute its own checking account products? How would you describe the channel positioning of People's Bank? What i
I need ideas for a paper on how Wal-Mart became the World's largest Company and a Strategic Audit for the Wal-Mart case.
See the attachment for the problem, and answer the following questions: 1. Review your work and the model answer. What accounts for any noticeable differences between the two? 2. What alternatives are available to the Farm Bank? 3. What would you recommend and why?
This is Case # 11 out of Wheelen and Hunger's: Strategic Management and Business Policy, 9th Ed. Your group is being asked to complete the following sections of a Strategic Audit: 1. Analysis of Strategic Factors 2. Strategic Alternatives and Recommended Strategy 3. Implementation 4. Evaluation and Control I hav
I desperatly need help! I need to find an article on "Wal-Mart Stores, Inc.: On Becoming the World's Largest Company", With that I need to produce a "Strategic Audit" for the Wal-Mart case. I need 15-20 pages and I only have 5 so far. I know this isnt going to be easy, but I need all the help and data I can get...thanks in
I am conducting a review inro how to properly record bookkeeping errors. Could you provide some assistance? Thanks. Problem (also attached): Describe how you would record each of the errors, listed below, on a cash reconciliation. 1. The bank recorded a deposit of $200 as $2,000. 2. The company's bookkeeper mistak
In many companys, there are investment appraisal procedures, such as investment proposal forms (showing the projected return on investment among other things) and post-installation audit (appraisal of investment after it's been undertaken) forms. What is the rationale behind these sorts of procedures? How do they help compan
When a company is deciding whether to undertake an investment (from a number of possible options), what is the general procedure for the submission of proposals and the subsequent audit of investment? I'm only looking for a relatively brief outline, maybe bullet-points if possible?
Should accountant take audit engagements from a client that they do other work for?
See the attachment for a bank reconciliation and depreciation problem.
Refer to article attached (Ernst and Young) Required: 1. A key issue with the SEC in this case appears to center on "Independence." Identify why auditor independence is deemed to be so important. 2. The auditor-client relationship identified in the article began prior to the Enron scandals. Briefly outline how "independ
Why do some restaurants offer customers a free meal if they are not given a receipt? What is the purpose of a bank reconciliation? When speaking to an account manager and she/he told you they don't have time to reconcile the bank account every month, how would that need to be encouraged to be done?
Why does your bank statement show a credit for an increase in your cash balance? ------ Is the chart of accounts the same for every organization? If not, why not and "should it be?"