Explore BrainMass


Audit: GAAS, working papers, accepting engagement, predecessor auditor

5. Generally accepted auditing standards recognize two categories of evidential matter: underlying accounting data and corroborating information. In making an audit in accordance with GAAS: a. corroborating information is always required, while underlying accounting data may be gathered under certain circumstances. b. underl

The Farm Bank

These are the question that I need help answering: 1. Review your work and the model answer. What accounts for any noticeable differences between the two? (1 paragraph) 2. What alternatives are available to the Farm Bank? (1 paragraph) 3. What would you recommend and why? (1 to 2 paragraphs) 4. Provide justification (1

Possible audit adjustments: materiality levels

In your audit for calendar 2009, 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're closed," and management does not want to make any adjustments. Planning materiality for the

Discuss the importance of the Audit Committee to assure independence.

The audit committee helps to assure independence. The audit committee is comprised of directors, not managers, and their job is to appoint, retain, oversee, evaluate and terminate the audit firm. I think this is important because the process is not administered by executive level management, but the Board of Directors. I think

What is an audit program

a. What is an audit program? b. Identify two tasks that need to be accomplished in the framework for developing an audit program. c. What essential information is generally documented in an audit program?

Important information about Bank Reconciliation Statement

Consider the following information for Susan Supplies Store for the month of June. * Deposits in transits as of June 30, were $3,785.15. * Interest revenues earned was $1,300. * Bank service charges amounted to $48. * An error was discovered: The bank deducted from the Susan Supplies Store account a c

Audit Program Design

I need some help design tests of controls, substantive tests of transactions, and analytical procedures for the Payroll and Personnel cycle. I do not want it to merely focus on statistical procedures; but rather I should demonstrate an understanding of current industry practices including non-statistical procedures and integ

Definition, Advantages and disadvantages of the primary types of auditors

What are the advantages and disadvantages of the primary types of auditor? There are several types of auditors, the most common types of auditors are: ? Certified public accounting firms ? Government Accountability office Auditors ? Internal Revenue Agents ? Internal auditors Please explain the advantages and disadvant

Billings Container Company

Problem 17-40 Unit 9, Chapter 17 Rittenberg/Schwieger/Johnstone- Auditing 6e (Critique an Audit Report Qualified for a Scope Limitation) You are a senior auditor working for Rittenberg & Schwieger, CPAs. Your staff assistant has drafted the following audit report. You believe the scope limitation is significant enough to

Documenting Audit Findings in the Junior Auditor case

Most major accounting firms rely on three main revenue streams: Auditing services, Tax services & Business consulting. Since the Securities and Exchange Commission (SEC) requires publicly traded companies to be audited by an external CPA firm, auditing can be a significant part of most accounting firms' revenue. Review

The Benefits of Hiring an Internal Auditor

A client has an out-of-control system and a recommendation has been made to hire an internal accountant. Write a recommendation brief for the client in which you justify the benefits of using an internal auditor. Conclude your recommendation by referring a particular person for the job based on their background. Explain how t

Notes Receivables, interest revenue and more (Gale Sondergaard Company)

(Reporting of Notes Receivable, Interest, and Sale of Receivables) On July 1, 2007, Gale Sondergaard Company sold special-order merchandise on credit and received in return an interest-bearing note receivable from the customer. Sondergaard will receive interest at the prevailing rate for a note of this type. Both the principal a

Bank Fees and Bank Reconciliation

Bank fees are squeezing customers according to an article in The Record (Hackensack,NJ) dated April 20, 2006. Banks are having a hard time making money lending, so many are charging more and higher fees. Meanwhile, interest paid on interest-bearing checking accounts remains low.Kayla Siska received her bank statement from the Co

Bank of North America & Kinkus Publishing

Can you help me get started with this assignment? C1. Assume that you work for Bank of North America and that you have made a $20 million loan to Kinkus Publishing, which must be repaid at the end of this year. Kinkus has undertaken a major expansion, ant eh value of its assets when the loan comes due is expected to be eithe


Adcock Plastics Company deposits all receipts and makes all payments by check. The following information is available from the cash records: MARCH 31 BANK RECONCILIATION Balance per bank $26,746 Add: Deposits in transit

The IRS and Darryl Strawberry's audit for unreported income

The IRS audited the tax returns of Darryl Strawberry, a former major league outfielder. It contended that, between 1986 and 1990, Strawberry earned $422,250 for autograph signings, appearances, and product endorsements, but he reported only $59,685 of income. Strawberry attributed the shortfall to his receipt of cash for autogra

Please assist in performing a strategic audit of Hewlett-Packard, Inc.

I need assistance in performing a strategic audit, namely analyzing all strategy aspects of Hewlett-Packard, Inc. It has experienced both success and hard times and CEO changes in recent times. Please explain the following: ? Organization mission and vision ? Products and brands ? Organizational stakeholders ? CEO and exe

Tax Strategy Problem for John Gemstone under IRS Audit

Can you help me start the following case study? I:1-49 John Gemstone, a wealthy client, has recently been audited by the IRS. The agent has questioned the following deduction items on Mr. Gemstone's tax return for the year under review: - A $10,000 loss deduction on the rental of his beach cottage. - A $20,000 charitable

Accounts Receivable changes with bad debts

P14-8 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 increas

Bank excess funds: evaluate profit and risk of three options for investment

A new client just deposited $300,000 in a corporate checking account. Idle money means missing out on profits, so we want to put the additional funds to good use as soon as possible. We've identified three potential options for using the additional funds?you should evaluate the profitability and risk implications of each of the