Explore BrainMass

Explore BrainMass

    Auditing

    BrainMass Solutions Available for Instant Download

    Problem Solution: USA World Bank (MBA 510)

    Problem Solution: USA World Bank. Includes material for the following sections: - Issue and Opportunity Identification - Stakeholder Perspectives/Ethical Dilemmas - Describe the "End-State" Vision - Identify the Alternatives and Benchmarking Validation - And more... Need help with your own paper? This is the solution

    Henderson Office Supply

    Henderson Office supply is considering a more liberal credit policy to increase sales, but expects that 8 percent of the new accounts will be uncollectible. Collection costs are 5 percent of new sales; production and selling costs are 78 percent; and accounts receivable turnover is five times. Assume income taxes of 30 percent a

    How to Prepare a Bank Reconciliation and Record Adjustment for Clark Company

    8-4A - Prepare a bank reconciliation and record adjustments Use the spreadsheet in Appendix B to complete Problem 8-4A. Be sure to use the tabs labeled SP08-04A and Given P08-04A The following information is available to reconcile Clark Company's book balance of cash with bank statement cash balance as of July 31, 2005:

    Audit Evidence Analysis

    In verifying the balance of Cash in Midtown Bank, Ann Moore began by footing the bank reconciliation prepared by the client. Next, she verified outstanding checks by tracing them to the check register. In addition, she compared the ending bank balance with the balance shown on the bank confirmation obtained directly from the ban

    Audit: Segregation of duties

    Melody Wilson is reviewing the principle of segregation of duties. What are the two common applications of this principle? 8) Explain the control principle of independent internal verification. (b) What practices are important in applying this principle?

    Cost of trade credit Grunewald Industries sells on terms of 2/10, net 40. Gross Sales last year were $4,562,500, and accounts receivable averaged $437,500. Half of Grunewald's customers paid on the 10th and took discounts. What are the nominal and effective costs of trade credit to Grunewalds's non discount customers? (Hint: Calculate sales/day based on a 365-day year;then get average receivables of discount customers;then find the DSO for the non discount customers.)

    Grunewald Industries sells on terms of 2/10, net 40. Gross Sales last year were $4,562,500, and accounts receivable averaged $437,500. Half of Grunewald's customers paid on the 10th and took discounts. What are the nominal and effective costs of trade credit to Grunewalds's non discount customers? (Hint: Calculate sales/day b

    Audit: Division of Duties at Meridian Paint for best internal controls

    The division of the duties set forth below is meant to provide the best possible controls for the Meridian Paint Company, a small wholesale store. You are to divide the duties among Robert Smith, James Cooper, and Bill Miller by placing an "X" in the appropriate column under the name of the individual who will be assigned each

    A Financial Analysis of SunTrust Bank

    This file contains a formatted MS Word and MS Excel file, which conducts a thorough financial analysis of SunTrust Bank. From the information contained in these postings, company managers, accounting personnel, investors, lenders and other interested parties can ascertain whether an organization (in this case, SunTrust Bank)

    Uncollectible Accounts and Bad Debts Expense

    Leland Company has accounts receivable of $98,100 at March 31. An analysis of the accounts shows the following. Month of Sale Balance, March 31 March $ 65,000 February 17,600 January 8,500 Prior to January 7,000 $ 98,100 Credit t

    Corporate Governance System: compare market-centered to bank-centered systems

    It is said that the United States has a market centered corporate governance system, wherein as Germany has a bank centered system. What does the two designations mean? How would you compare the corporate governance systems of the United States and Germany. How did both countries come to have the systems they have? and what a

    Control risk

    What is control risk and what is the role of control risk assessment in audit planning?

    Audit Trail and Auditors

    Please help with the following problem. What is the meaning of audit trail, and why is it necessary for the audit process?

    Net realizable value of accounts receivable

    Accounts are closed and adjusted at the end of the year. Accounts receivable has a balance of $350,000 and the allowance for doubtful accounts has a balance of $15,000. What is the net realizable value of the accounts receivable?

    Audits

    AICPA professional standards provide uniform wording for the standard unqualified audit report. For each of the seven parts: 1-List the specific report parts. 2-Identify the contents of each part. 3-Determine if a qualified opinion, adverse opinion, or a disclaimer of opinion would be issued for each of the above occurrenc

    Janel's Reconciliation of Check Book

    Janel company has outstanding checks of $2,300 on its may bank reconciliation. In June Janel's company issued checks totaling$29,800. The June bank statment shows $20,000 of checks cleared in June. A check from one of Janel's customers was NSF for $250. I am trying to find the amount of outstanding checks on Jones Company's jun

    Cost of borrowing..

    Pyramid Products Company has a revolving credit agreement with its bank. The company can borrow up to $1 million under the agreement at an annual interest rate of 9 percent. Pyramid is required to maintain a 10 percent compensating balance on any funds borrowed under the agreement and to pay a 0.5 percent commitment fee on the u

    Review of the working papers on the audit of a new client

    Frank is a technical manager of a CPA firm. Recently Frank was requested by his firm to conduct a review of the working papers on the audit of a new client, Alpha Electronics Limited ("Alpha"), a company engaging in the manufacturing and trading of computer accessories and devices, and to report his findings to the partner in c

    Autonomy for Mexico's central bank

    In 1993, President Carlos Salinas de Gortari proposed a bill that would formally grant the Bank of Mexico, Mexico's central bank, autonomy vis-à-vis the central government. As an investor, how would you view such a proposal? What other changes might help to amplify the signals sent by this proposal?

    Central bank intervention

    Comment on the following statement: "One of the puzzling aspects of central bank intervention is how those who manage our economic affairs think they know what is the `right' price for a dollar in terms of francs, pounds, yen, or Deutsche marks. And if they do know, why do they keep changing their minds?"

    External Audit Concerns

    Please help so that I can complete the following assignment: The following situations have caused you to become concerned about the quality of an upcoming external audit: 1-The audit will not begin until February, 2006, after the books have been closed, so the external auditors will not be able to confirm the accounts rec

    VP Branch Bank

    Suppose you are consulting for a VP branch bank. You notice that several branches have consistently low customers service ratings even though there are no apparent differences in resources or staff characteristics. Describe an active inquiry process in one of these branches that might help to overcome these problems.

    Prepare a bank reconciliation - Haverman Company

    Please see attached PDF. Haverman Company maintains a checking account at the Commerce Bank. At July 31, selected data from the ledger balance and the bank statement are shown below. Cash in Bank Per Books Per Bank Balance, July 1 $17,600 $16,800 July receipts 81,400 July credits 82,470 July

    A. Suppose that the bank offers to run the lock box for a $20,000 compensating balance. Is the lock box worthwhile? b. Suppose that the bank offers to run the lock box for a fee of $.10 per check cleared instead of a compensating balance. What must the average check size be for the fee alternative to be less costly?

    13. The financial manager of JAC Cosmetics is considering opening a lock box in Pittsburgh. Checks cleared through the lock box will amount to $300,000 per month. The lock box will make cash available to the company three days earlier than is currently the case. a. Suppose that the bank offers to run the lock box for a $20,00

    Hemingway Company

    Hemingway Company had the following transactions for the year ended December 31,2006. July 1 Received a $2,000, three-month 10% promissory note from Damon Runyon in settlement of an open account. Aug. 1 Received a $1,000, three-month 12% note receivable from Carl Sandburg for cash borrowed by Sandburg. Oct. 1 Received n

    Ledger balance with the bank and the net float.

    My company has $250,000 deposited with a local bank. Two days later, my company writes and mails checks of $20,000 and $60,000 to suppliers. At the end of the month, I deposit a $45,000 check received from a customer in the morning mail and pick up the end-of-month account summary from the bank. I note that only the $20,000 paym

    Determine EOQ for bank cash

    A bank branch must keep a stock of cash on hand for customer withdrawals. The net daily withdrawal rate at the branch is $5,000. The opportunity cost of cash is 10% per year. Repleneshment of the cash stock from the central bank requires careful accounting and contracting to an armored delivery service. This costs $250 per r

    ADVERTISEMENT