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Auditing

Reasons Audits Accumulate Evidence

Auditors accumulate evidence to: a.) defend themselves in the event of a lawsuit b) justify the conclusions they have otherwise reached c) satisfy the requirements of the Securities Acts of 1933 and 1934 d) enable them to reach conclusions about the fairness of the financial statements.

How long should customers expect to be at the bank facility

Please help me with this operation question If customers arrive at a single drive-in window at a local bank one every four minutes on the average, and if you can serve a customer in three minutes on the average: How long should customers expect to be at the bank facility on the average?

Investor's Holding Period Yield

Commercial paper was purchased in the secondary market 30 days from maturity at a bank discount yield of 9 percent. Ten days later, it was sold to a dealer at an 8 percent discount rate. What was the investor's holding-period yield?

Audit Case study 1.8 Crazy Eddie, Inc.

Was not able to attach PDF due to size, but copy of Case Study Crazy Eddie, Inc. available at http://business2.fiu.edu/1048733/www/Spring_2010_ACG6686_RD4/Crazy%20Eddie.pdf 1. Compute key ratios and other financial measures for Crazy Eddie during the period 1984-1987.Identify and briefly explain the red flags in Crazy Edd

Audit: Case study 1.2 JUST FOR FEET, Inc.

JUST FOR FEET, INC. CASE STUDY QUESTIONS Based on Case Study1.2 Just for Feet, Inc. Contemporary Auditing Real Issues and Cases 7th ed. Michael Knapp 1) Prepare common-sized balance sheets and income statements for Just for Feet for the period 1996-1998. Also compute key liquidity, solvency, activity, and profitability

As an auditor for Frankens Markets, you discovered fraudulent activities. In your previous discussions with management, no one with the Franken organization identified fraudulent behavior or activity, and any questions relating to such matters were met with defensive behavior. How might you address this situation?

As an auditor for Frankens Markets, you discovered fraudulent activities. In your previous discussions with management, no one with the Franken organization identified fraudulent behavior or activity, and any questions relating to such matters were met with defensive behavior. How might you address this situation?

Ben, an accountant, certifies several audit reports on Corporate Business, Inc. (CBI), Ben's client, knowing that CBI intends to use the reports to borrow money from Delta Credit Company. Ben believes that the reports are true and does not intend to deceive Delta, but does not check the reports before certifying them. Can Ben be held liable to Delta? WHY?

Ben, an accountant, certifies several audit reports on Corporate Business, Inc. (CBI), Ben's client, knowing that CBI intends to use the reports to borrow money from Delta Credit Company. Ben believes that the reports are true and does not intend to deceive Delta, but does not check the reports before certifying them. Can Ben be

benefits/costs of using within-firm secondary data

Business Insight (A Special Report); Innovation: Staring You in the Face; The path to new products might start with the customer data you've already collected; You just don't realize it Ranjay Gulati, James Oldroyd, Phanish Puranam. Wall Street Journal. (Eastern edition). New York, N.Y.: Sep 22, 2008. pg. R.9 Abstract (Su

Problem 7-4 Allowance for Bad Debts

Please help me with the attached problem. Raintree Cosmetic Company sells its products to customers on a credit basis. An adjusting entry for bad debt expense is recorded only at December 31, the company's fiscal year-end. The 2010 balance sheet disclosed the following: Current assets: Receivables, net of allowance f

Cirrus Logic Inc -A mount of accounts receivable due

Cirrus Logic Inc. is a leading designer and manufacturing of advanced integrated circuits that integrate algorithms and mixed=signal processing for mass storage, communications, consumer electronics and industrial markets. The company's 2009n financial statement contained the following information: ($ in thousand) Balan

Audit of Aviary Industries for calendar year 2007

In your audit of Aviary Industries for calendar year 2007, you found a number of matters that you believe represent possible adjustments to the company's books. These matters are described below. Management's attitude is that "once the books are closed, they'e closed," and management does not want to make any adjustments. Pl

Computing the Days in Accounts Receivable at the End Quarter

See attached Excel document. Compute the Days in Accounts Receivable amounts for the end of each quarter. Month Revenues Accounts Receivable at End of Quarter January $350,000 $275,000 February 375000 290000 March 225000 200000 1st Quarter Total $950,000 $765,000 April $300,000 $270,000 May 320000

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

Taxation: Pedro Bourbon's estate planning; Gemstone's IRS audit response

TAX STRATEGY PROBLEM I:1-48 Pedro Bourbone is the founder and owner of a highly successful small business and, over the past several years, has accumulated a significant amount of personal wealth. His portfolio of stocks and bonds is worth nearly $5,000,000 and generates income from dividends and interest of nearly $250,000 p

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.