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    External Auditing

    Auditing Payroll Tests of Controls

    Payroll Tests of Controls. See attached file for full problem description. The diagram describes several payroll tests of controls. It shows the direction of the tests, leading from samples of clock cards, payrolls, and cumulative year-to-date earnings records to blank squares. For each blank square, write a payroll test o

    Account Auditing

    1) How do you evaluate the results of a test of control? 2) Should sampling be applied to all audit procedures? Why or why not? 3) How do sampling results affect an audit conclusion?

    Auditing Question

    Suppose you selected a sample of customers' accounts receivable and wanted to find supporting evidence for the entries in the accounts. Where would you go to vouch the debit entries? What would you expect to find? Where would you go to vouch the credit entries? What would you expect to find?

    Auditing Balances for Revenues

    What account balances are included in a revenue and collection cycle? What specific control procedures should be in place and operating in internal control governing revenue recognition and cash accounting? What assertions are made about classes of transactions and events in the revenue and collection cycle?

    Existence & Rights Assertions - Auditing Accounts Receivable

    Why is it important to place emphasis on the existence and rights (ownership) assertions when auditing accounts receivable?Which audit procedures are usually the most useful for auditing the existence and rights assertions? What analytical procedures might be informative regarding the existence assertion?

    Auditing Payroll

    What are the common errors and frauds in the personnel and payroll cycle? Which control characteristic are auditors looking for to prevent or detect these errors and frauds? What features of the payroll system could be expected to prevent or detect payment of a fictitious employee? What about the omission of payment t

    Sample results for a test of transactions

    While performing a substantive test of details during an audit, the auditor determined that the sample results supported the conclusion that the recorded account balance was materially misstated. It was, in fact, not materially misstated. The situation illustrates the risk of A) Incorrect rejection. B) Incorrect acceptance

    Auditing - Assessing Controls

    Assessing Controls Assume that you were given these five options to describe the tone at the top: ? Excellent ? Moderate ? Indifferent ? Nonexistent ? Machiavellian (do whatever it takes) Required a. How would the auditor go about assessing which of the terms best describes the tone at the top? b. What effect would eac

    Auditing Question

    4. The third generally accepted standard of audit fieldwork requires that auditors obtain sufficient competent audit evidence to afford a reasonable basis for an opinion regarding the financial statements under examination. In considering what constitutes sufficient competent audit evidence, a distinction should be made be

    Professional Skepticism

    What is meant by professional skepticism? Can you think of a situation where the evidence says one thing but your gut tells you something else?

    Related Entity Transactions

    It is common for an entity to have transactions with related entities? Some of which are fully owned, some of which share common ownership, but are not otherwise related, and others where ownership is small but there is control. Tyco is a conglomerate organization that had $36 billion in revenue. In a court trial, it was allege

    Auditing Questions

    1. The natural sign of an asset is a: a. Debit b. Credit c. Both d. None 2. Internal Auditors are referred to as independent auditors. a. True b. False c. Neither 3. The three categories for standards for auditors as set forth by GAAS are general standards, standards of fieldwork, and standards of examination. a. T

    The First Standard of Field Work

    The first standard of field work recognizes that early appointment of the independent auditor has many advantages to the auditor and the client. which of the following advantages is least likely to occur as a result of early appointment of the auditor? a. the auditor will be able to plan the audit work so that it may be done

    Four multiple questions related to auditing

    Four multiple questions related to auditing. 1. Which of the following is least likely to be appropriate as the basis for determining the preliminary judgment about materiality in the audit of a set of financial statement? a. Net income before taxes. b. Current assets c. Owners' equity d. Inventory 2. Which of the fo

    Auditing Questions: risk, disclosure, departure

    Please help with these four questions _____ 22. Which of the following types of matters do not generally require disclosure in the financial statements? A. General risk contingencies B. Commitments C. Loss contingencies D. Liabilities to related parties _____ 23. A refusal by a lawyer

    Auditing: Describe an audit program and the purposes it serves

    A. The first generally accepted auditing standard of field work requires, in part, that "the work is to be adequately planned." An effective tool that aids the auditor in adequately planning the work is an audit program. Required: Describe an audit program and the purposes it serves. b. Auditors frequently refer to "standa

    10:59- Auditing:Chapter 10 Auditing Revenue and Related Accounts

    *10-59 (Misstatements and Controls) Field, CPA, is auditing the financial statements of Miller Mailorder, Inc. (MMI) for the year ended January 31, 2006. Field has compiled a list of possible errors and fraud that may result in the misstatement of MMI's financial statements, and a corresponding list of internal controls that,

    Audit Risk and Third Parties

    I need some help answering these questions on auditors and third party relationships: 1. When assessing audit risk, should auditors consider the type and number of third parties that may ultimately rely on the client's financial statements? 2. Should auditors insist that audit engagement letters identify the third parties

    Demand for auditing in a free market society

    What are the factors that drive the demand for auditing in a free market society? Would there still be a demand for auditing even if the law did not require it? Why or why not?

    Errors That Could Occur from Control Weaknesses

    9.83 ICQ Items: Errors That Could Occur from Control Weaknesses. Refer to the internal control questionnaire on a payroll system (Appendix 9A.3 - see below) and assume the answer to each question is "no." Prepare a table matching the questions to errors or frauds that could occur because of the absence of the control. Your col

    Strang Corporation

    During the year, Strang Corporation began to encounter cash flow difficulties, and a cursory review by management revealed receivable collection problems. Strang's management engaged Elaine Stanley, CPA, to perform a special investigation. Stanley studied the billing and collection cycle and noted the following. The accountin

    What are the advantages and disadvantages of sampling?

    E.54 Basic Sampling: Comprehensive. Reagan is considering opening a multipurpose hardware and lawn store in Anytown, USA. Based on his knowledge of the industry, he feels that if the average household income is greater than $35,000, the store will ultimately be successful. He was planning on attempting a census of the income lev

    Mgmt assertions

    What are management assertions? How do they affect the financial statements? How does the auditor formulate audit objectives based on management assertions?

    Auditing

    Explain the difference between auditing around the computer, through the computer, and with the computer. Do you think it is possible to conduct a thorough audit by auditing around the computer? Is it ever efficient to audit without a computer?