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Auditing

Determine the Amount of Installment Accounts Receivable

See attached file for proper format. Dolce Co. which began operations in January 1, 2011, appropriately uses the installment sales method of accounting to record revenues. The following information is available for the years ended December 31, 2011 and 2012. 2011 2012 Sales $1,000,000 $2,000,000 Gr

Brussels and Bradshaw Investment Bank (B&B) case

Read the Part II Case Study beginning on page 277 after Chapter 7. Brussels and Bradshaw Investment Bank (B&B) (attached) Required: ? Identification and summary of the key organizational behavior issues evident in the case ? Reflection on the identified issues along with recommendations or potential solutions to identi

Audit procedures over cash

While testing the year end balance in the general cash account, the auditor must accumulate sufficient, appropriate, evidence to evaluate whether cash as stated on the balance sheet, is fairly stated and properly disclosed. Identify broad audit procedures over cash, then give specific examples of detailed audit procedures.

Client benefits of using an internal auditor

Please help with the following problems regarding auditing and accounting. Give at least 300 words in the solution. Explain for the client the benefits of using an internal auditor. Explain how their background benefits the client.

EOQ using Discounts

Bank Drugs sells Jami Michelle lipstick. The Jami Michelle Company offers a 6% discount on orders of at least 500 tubes, a 10% discount on orders of at least 1,000 tubes, a 12% discount on orders of at least 1,800 tubes and a 15% discount on orders at least 2,500 tubes. Bank sells an average of 40 tubes of Jami Michelle lipst

integrated audit

The CEO of your company has recently met with the auditors to discuss the scope of the year's audit. The CEO has asked you to make a presentation at the next board of directors meeting to discuss the reason that public accounting firms perform an integrated audit. Include the following in the presentation: 1) Discuss the rea

Lenders, investment bank, intermediaries

Select one of the organizations you have analyzed during the course. - Identify two lenders the organization uses. - Identify the investment bank the organization uses to issue stock. - Identify and discuss the role these intermediaries play for the organization. - Discuss which government entities regulate securities thi

The Overpaid Bank Tellers

Please read the case provided in the link below and then answer the four questions at the end of the case. Thank you for helping me start this project. http://books.google.com/books?id=sn69pKnGkM4C&pg=PA195&dq=the+overpaid+bank+tellers&hl=en&ei=Ga6jTdS8A4fLgQfriZWICg&sa=X&oi=book_result&ct=result&resnum=2&ved=0CDwQ6AEwAQ#v

Miscellaneous receivable transactions

Evergreen Company sells lawn and garden products to wholesalers. The company's fiscal year-end is December 31. During 2011, the following transactions related to receivables occurred: Feb. 28 Sold merchandise to Lennox, Inc. for $10,000 and accepted a 10%, 7-month note. 10% is an appropriate rate for this type of note.

6.With respect to audit objectives, the term validity relates to which of the assertions below? a.existence and occurrence b.completeness c.valuation or allocation d.presentation and disclosure e.rights and obligations

Can you please verify if these answers are correct? Please explain why, as well. Thanks! 6.With respect to audit objectives, the term validity relates to which of the assertions below? Answer: A a.existence and occurrence b.completeness c.valuation or allocation d.presentation and disclosure e.right

Reconstructing Revenue - Net Worth and Bank Deposit Methods

Please read and give your thoughts on. While the net worth method focuses on the balance sheet and the increase in net worth for the year the bank deposit method looks at the money deposited and withdrawn throughout the year. The bank deposit method provides an ability to reconstruct gross revenue rather than adjusted income.

Dividend and Forecasted Growth Rates

You are considering an investment in Bank of America (BAC, NYSE). From your analysis, you believe this stock should be valued so as to produce a 9.5 percent long-term rate of return. Using the current stock price, determine the value of the stock using a. The ten-year historical dividend growth rate b. The consensus a

How to write audit engagement letter

The CPA firm of Test & Check has been appointed auditors for the XYZ Corporation by the company's audit committee. The engagement is limited to making an audit of the company's financial statements. The audit fee is to be at the firm's regular per diem rates plus travel costs. To confirm the arrangements, Test & Check sends an e

Activity Based Costing of Customers for Sandy Sun Bank

Sandy Sun Bank and Trust (SSB&T) offers only checking accounts. Customers can write checks and use a network of ATM's. SSB&T earns revenue by investing the money deposited; currently it averages 5.2 percent annually on it's investments of those deposits. To compete with larger banks, the bank pays depositors .05% on all deposits

Benefits and Limitations of an Audit

A fellow business student questions the benefits of an audit as follows: "Why should a company hire auditors? As far as I can tell auditors of public companies charge millions of dollars in audit fees, and it is not clear to me that management receives any benefit for this expenditure. It is just money down the drain. It is a

Essence of Skunk Fragrances: Effect on Accounts Receivable

Essence of Skunk Fragrances, Ltd. sells 5600 units of its perfume collection each year at a price per unit of $425. All sales are on credit with terms of 1/10, net 40. The discount is taken by 60 percent of the customers, by its main competitor, Sewage Spray. Essence of Skunk is considering a change in its credit policy to term

Continuous audit: Likelihood of success in the future; roadblocks to success

The CICA/AICPA's study defines a continuous audit as a "...process or methodology that enables independent auditors to provide written assurance on a subject matter using a series of auditors' reports issued simultaneously with, or a short period of time after, the occurrence of events underlying the subject matter". One

Identify an example of audit procedures and describe what it means

1)Explain the concept of materiality and describe one of the ways the concept of materiality is used in planning and performing the audit. 2)What is audit risk and what is it composed of ? 3)What is the definition of audit evidence ? 4)Identify and describe one of the six factors that influence the reliability of audit

Bank Reconciliation and Bad-Debt Reporting

Please see attached - 4 questions E8-27 Angela Lansbury Company deposits all receipts and makes all payments by check. The following information is available from the cash records. June 30 Bank Reconciliation Balance per bank 7,000 Add: Deposits in transit 1,540 Deduct: Outstanding checks (2,000) Bala

Audit of a multifaceted special events organization

As an independent financial consultant, you have been hired to audit the books of a multifaceted special events organization. Upon examination of the records, you determine that management intentionally commingled funds between the different divisions of the organization. Explain your response to this situation and justify the r

Determine back reconciliation info

Prepare a bank reconciliation as of October 31 using the attached info - see attachment for details. Refer to the information given below. a. The October 31 cash balance in the general ledger is $844. b. The October 31 balance shown on the bank statement is $373. c. Check

Schedule of Accounts receivable

1.The following information is available regrading the outstanding accounts receivable of Mufu Contracting at September 30, 211: Month of credit Sale Customer May June July Aug Sept B. Axley 28,000 0 0 0 0 T. Holton 0 0 72,000 24,000 14,000 W. Nix 0 18,000 0 4,000 12,000 C. Percy 0 0 4,000 0 10,000 K. Willis 0 0 0 0 9

Size of Accounts Receivable

Corporate Finance question: Tidwell, Inc. has weekly credit sales of $19,400, and the average collection period is 34 days. The cost of production is 75 percent of the selling price. What is the average accounts receivable figure? The book explains monitoring receivables and aging schedules but nothing about average accoun