Explore BrainMass

Explore BrainMass


    BrainMass Solutions Available for Instant Download

    Audit Questions

    B. Explain why auditors translate audit assertions into specific audit objectives when developing an audit program. c. If you are auditing the existence and occurrence assertion, what specific audit objectives should be accomplished by developing an audit program? Explain the purpose of each audit objective. d. If you a

    Audit Evidence: type and reliability

    (Audit evidence) 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

    Audit approach - Overstated Sales and Accounts Receivable

    Write the "audit approach" portion of the case, organized around these sections: Objective: Express the objective in terms of the facts supposedly asserted in financial records, accounts, and statements. Control: Write a brief explanation of desirable controls, missing controls, and especially the kinds of "deviations" that

    Risk assessments and audit strategies

    Risk assessments and audit strategies. See attached file for full problem description. The following risk factors were identified by various audit teams during the audit of their clients. 1. The client has a strong control environment and good controls over the existence of inventory. 2. The client is in an industry

    Reluctance of bank to extend credit

    Sidney Capstan attributed much of the business' success to its no-frills policy of competitive pricing and immediate cash payment. The business was basically a simple one--the firm imported cars at the beginning of each quarter and paid the manufacturer at the end of the quarter. The revenues from the sale of these cars covere

    Notes Receivable - Preparing a Journal Entry

    PART IV ? NOTES RECEIVABLE Instructions: Prepare journal entries to record the following events: July 1 Stone Company received an 8%, 4-month $9,000 note dated July 1 from a customer on account. Nov. 1 The note is honored and no interest has been accrued. Nov. 1 Assume instead that the note is dishonored

    Cash: Audit Procedures and controls to identify errors

    The following items were discovered during the audit of the Cash account. For each item identified: a. Indicate the audit procedure that most likely would have led to the discovery of the error. b. Identify one or two internal controls that would have prevented or detected the misstatement or irregularity. Audit Findings 1.

    Audit Questions: Example Problems

    Should publicly traded companies be required to publish the management letters that come from the auditors? Why or why not? Is a qualified audit opinion always a bad thing? Why or why not?

    Allowance method for bad debts.

    Milner Corp. uses the allowance method to account for uncollectibles. On October 31, it wrote off a $1,000 account of a customer, C. Schaub. On December 9, it receives a $200 payment from Schaub. 1. Prepare the journal entry or entries for October 31. 2. Prepare the journal entry or entries for December 9:

    Locbox Collection System

    Mesa Electronics, located in Phoenix, is attempting to determine if it should set up a lockbox collection system for its Northeastern customers. Currently the firm receives an average of 350 payments per working day (assume 250 working days per year) from that section of the country. These payments provide an average daily colle

    Subsequent events review of auditor responsibilities

    An auditor is concerned with the balance sheet as of a particular date, such at 12/31. Sometimes events occur or become know subsequent to the balance sheet date and before the issuance of the audit report. An auditor's responsibility for subsequent events and related audit procedures is addressed in the AICPA's Codificat

    Audit and Corporate Scandals

    Given the recent accounting scandals, how much confidence should the public really have in financial audits? In light of recent audit failures, are current audit standards sufficient to ensure the integrity of audit opinions? Why or why not?

    Bank reconciliation statement of P. Nolan

    Draw up the bank reconciliation statement of P. Nolan as at 30 June in order to reconcile the bank balance in the cash book with the balance in the bank statement. See attached file for full problem description.

    Audit: 40 multiple choice covering a wide range of comprehensive audit topics.

    Audit questions 1 Which of the following procedures would an auditor least likely perform before the balance sheet date? a. Confirmation of accounts payable. b. Observation of merchandise inventory. c. Assessment of control risk. d. Identification of related parties. 2 An auditor traced a sample of purchase orders and

    Bad Debt

    Because of calamitous earthquake losses, Kipmo Company, one of your client's oldest and largest customers, suddenly and unexpectedly became bankrupt. Approximately 30% of your client's total sales have been made to Kipmo's during each of the past several years. The amount due from Kipmo-- none of which is collectible -- equals 2

    Audit Risk

    Your firm has been hired as an outside auditor to conduct an audit on a growing software company that is getting ready to go public. The company has been in business for approximately five years, and the Controller position has had three different people in this time period. The main shareholder tells you the first Controller le

    Audit Report

    The following audit report was rendered on the financial statements of the Town of Maywood: We have audited the accompanying general purpose financial statements (but not the accompanying combining and individual fund statements and supplemental statistical data) of the Town of Maywood, (State), as of June 30, 20x1, and for

    Cash Collection Receivables Problem

    A firm has forecasted sales of $4,000 in January, $6,000 in February and $5,500 in March. All sales are on credit. 40% is collected the month of sale and the remainder the following month. How much is collected from accounts receivable in February?

    Auditor Reports, Evaluations and Finalizing

    What are the steps that are required for an auditor to finalize the audit? Which steps are the most crucial to the outcome of the audit? How will these steps affect the final audit decision? What other types of engagements are auditors involved in besides auditing? What are the other types of reports that auditors will issu

    Stockholders' Equity: audit program for Zeitlow Corporation

    A CPA firm is engaged in the examination of the financial statements of Zeitlow Corporation for the year ended 12/31/06, Zeitlow Corporation's financial statements and records have never been audited by a CPA. The stockholders' equity section of the balance sheet at 12/31/06 is Stockholders' Equity: Captial stock - 10,0

    Audit - Rousch

    The Rousch Racing Company is in the business of building NASCAR race cars. They also have an engineering department that builds components for other racing teams, as well as for specialty cars built for major manufacturers such as Ford Motor Company. Rousch has three lease-related accounts on their books; Leasehold Improvem

    Related Party Transactions: An Audit Program

    Please help with the following problem. Provide at least 100 words in the solution. Most business transactions result from "arm's length' dealing. When parties to a transaction are related, the objectivity expected in unrelated bargaining may be lost. Any loss of objectivity may require reporting in the financial statement

    Bank Note

    Allied Bank was the holder of a 3-month note dated June 18th with a discount rate of 12%. The face value was $10,000. On July 20th, Allied Bank rediscounted the note at Trusted Bank at 11%. Discuss how to calculate how much Allied Bank loaned to the maker of the note and how much Allied would receive when the note was redisco

    Types of Audit Tests & Audit Risk Models

    The following are 11 audit procedures taken from an audit program. 1. Foot the accounts payable trial balance and compare the total with the general ledger. 2. Examine vendors' invoices to verify the ending balance an accounts payable 3. Compare the balance in payroll tax expense with previous years. The comparison takes t