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Auditing

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 gross revenue

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the balance sheet and the increase in net worth for the year the bank deposit method looks at the money deposited and withdrawn throughout the year.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.

Engagement letter for Auditors

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 depsited; currently it averages 5.2 percent annualy on it's investments of those deposits. To compete with larger banks, the bank pays depositers .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

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

Accounts Receivable and Notes payable

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

Accounts receivable changes with bad debts

14.9 Accounts receivable changes with bad debts A firm is evaluating an accounts receivable change that would increase bad debts from 2% to 4% of sales. Sales are currently 50,000 units, the selling price is $20 per unit, and the variable cost per unit is $15. As a result of the proposed change, sales are forecast to increase t

Investment in receivables and receivable investments

Drake Paper Company sells on terms of net 30. The firm's variable cost ratio is 0.80. a. If annual credit sales are $20 million and its accounts receivable average 15 days overdue, what is Drake's investment in receivables? b. Suppose that, as the result of a recession, annual credit sales decline by 10 percent to $18 mill