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
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
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?
The financial manager of JAC Cosmetics is considering opening a lockbox in Pittsburgh. Checks cleared through the lockbox will amount to $300,000 per month. The lockbox will make cash available to the company three days earlier than is currently the case. 1. Suppose that the bank offers to run the lockbox for a $20,000 compen
Question: SAS 85 requires that auditors obtain a Management Representation letter on matters of audit importance. Discuss the make-up of this letter and the information contained within. Does the letter provide comfort to the auditor? If this is simply a letter stating certain information from the client and is not audited
2. In preparing its May 31, 2004 bank reconciliation, Dogg Co. has the following information available: Balance per bank statement, 5/31/04 $27,000 Deposit in transit, 5/31/04 5,400 Outstanding checks, 5/31/04 4,900 Note collected
You have been asked to prepare a brief presentation on the nature and purpose of the auditors' opinion for your investment club. The club members would like your presentation to answer these questions: a. How is the "scope" of an audit determined? What role should the auditors' fee play in setting the scope? b. How can the a
Describe lapping within the context of accounts receivable. What is the method for detecting lapping?
During the course of an audit, the auditor examines a wide variety of documentation. Listed below are some forms of documentary evidence and the sources from which they are obtained. 1. Bank statement sent directly to the auditor by the bank. 2. Creditor monthly statement obtained from client's files. 3. Vouchers in client'
Bank earnings in non-interest income and non-interest expenses. See the attached bank balance sheet.
E7-8 The following information pertains to DeVries Company 1)Cash balance per bank on July 31, $7,328. 2)July bank service charge not recorded by the depositor $40. 3)Cash balance as per books, July 31, $7,280. 4)Deposits in transit, July 31 $1,700. 5)Note for $1000 collected for DeVries in July by the bank, plus intrest
E7-6 Leng Xiong is unable to reconcile the bank balance as of January 31, Leng's reconciliation is shown here: Cash Balance per bank = $3,660.20 Add: NSF check = 370.00 Less Bank Service Charge = 25.00 Adjusted Bank Balance per bank = $4,005.20 Cash Balance per books =
1. Giving value to clients is absolutely essential to especially auditors. Your client, a public company in the jewelry business, is looking to you as their consultant, for suggestions to improve their profit. 2. Inventory Procedures Using Computer-Assisted Audit Tools and Techniques : In your discussion Explain the pro
1. Explain the process and benefits of audit sampling. 2.Assess risks inherent to selected transaction cycles.
Accounts receivable are $45,000 and are directly proportional to total sales. The sales forecast for next year is $125,000, which represents a 5% growth over the current year. The forecast accounts receivable would be:
Please, see attached file. 4-3 Why might an advertising agency use job costing for an advertising campaign by Pepsi, whereas a bank uses process costing to determine the cost of checking accounts withdrawals? 4-14 When Might a company use budgeting cost rather actual costs to compute direct labor rates? 17-3 Explain equi
1. Discuss how you would perform preliminary analytical procedures and recommend ways to mitigate engagement risk and audit risk. 2. Analyze elements of the audit planning process and explain how you would prepare an audit program.
I need help with the questions 1 to 5. Thanks. Please see the attached file.
Audit around versus Audit through computers. Please see the attached file.
As part of the audit of Manor Company, you are assigned to review and test the payroll transactions of the Galena plant. Your tests show that all numerical items were accurate. The proper hourly rates were used and the wages and deductions were calculated correctly. The payroll register was properly footed, totaled, and posted.
30.An auditor has taken a large sample from an audit population that is skewed in the sense that it contains a large number of small dollar balances. The auditor can conclude A)The sampling distribution is not normal; therefore PPS sampling will more accurately define the nature of the population. B)The sampling distribution
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
TPC wants to be ensured that the audit report for year-end 2005 is a standard unqualified audit report. Management has requested that you create a presentation about how to obtain an unqualified audit report. Include the following details: What are the circumstances that could prevent the external auditors from providing an
Dear OTA, Please help me with steps. Thanks The cash account in the general ledger of Hendry Corporation shows a balance of $96,990 at December 31, 2007 (prior to performing a bank reconciliation). The company's bank statement shows a balance of $100,560 at the same date. An examination of the bank statement reveals t
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:
In recent years, accountants and auditors have come under scrutiny for negligent auditing procedures and inappropriate activities (e.g. shredding files). Yet, the demand for accountants and auditors these days is stronger than ever. Briefly discuss the reasons for this conundrum. Why would mistakes made by accountants cause the
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