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External Auditing

Designing tests of controls

Design tests of controls, substantive tests of transactions, and analytical procedures for the following Apollo Shoes cycles: o Payroll and Personnel Cycle o Acquisition and Payment Cycle 150 words each.

The North Face, Inc: Auditing

Case 5.3 The North Face, Inc. (by Michael C. Knaap 8e.) Questions 1. Should auditors insist that their clients accept all proposed audit adjustments, even those that have an immaterial effect on the given financial statements? Defend your answer. 2. Should auditors take explicit measures to prevent their clients from discove

Property, plant, and equipment recorded at appraisal value issue

This is the first year that you have audited Hurst & Johnson Corporation. You discovered that the company is carrying its property, plant, and equipment at appraisal values and determines depreciation on the basis of these values. This is considered a very large scope-limitation, and you have not been able to form an opinion on

Clear Objectives in Auditing

1. Setting clear objectives up front can make the difference between providing the client with a tool to improve operations and providing a report that adds no value other than to give the company assurance that it has a certified audit on record. What process would you follow if, during an audit, you stumble upon something

Auditing and internal controls

The following questions might be addressed in an evaluation of internal controls for fixed assets. For each question: a. Indicate the purpose of the control. b. Indicate the impact on the substantive audit procedures if the answer to the question indicates weak controls. Internal Control Questions 1. Does the client period

Blatant Fraud Above is a link to an article released today about my previous employer that went bankrupt in June and 375 lost their jobs in total. $300MM in private investment and $70 in public funds were lost as we

External Auditing

1. Which of the following statements is most correct regarding errors and fraud? An error is unintentional, whereas fraud is intentional. Fraud occurs more often than errors in financial statements. Errors are always fraud and fraud is always errors. Auditors have more responsibility for finding

Audit committees, impact on audit plan, control weaknesses

Question 1: The external auditor can rely on the work of the internal auditor subject to certain conditions being met. One of this relates to the internal auditor reporting to the audit committee rather than to management. Required: (i) Please explain as to why this is an important condition to be met (ii) Provide three b

CPA Profession and Audit Reports

1. Who is responsible for establishing auditing standards for audits of public companies? Who is responsible for establishing auditing standards for private companies? Explain. 2. Generally accepted auditing standards have been criticized by different sources for failing to provide useful guidelines for conducting an audit. T

Auditing and Company Procedures

1. Management may delay recording of liabilities to improve the current ratio. However, financial statements that fail to report all liabilities at year-end are misstated. In assessing inherent risk for expenditure cycle assertions, the auditor should consider pervasive factors, such as pressures, to understate payables in ord

Auditing Sample Methods

1) Why do auditors find it necessary to use sampling? What are the risks associated with sampling? How might these risks affect the audit conclusion? 2) What are some of the different types of sampling methods available to the auditor? How does the auditor decide which method to use? How might the different methods affect the

Levels of Materiality within Auditing

1. Materiality underlies the application of Generally Accepted Auditing Standards (GAAS), particularly the: a. general and field work standards, b.general and reporting standards, c. field work and reporting standards, d.reporting standards, or e.general standards. 2.Which of the following is not a weakness of analyt

Auditing and Monitoring

1) The following is a common example of a circumstance imposed scope limitation. An auditor might identify a material weakness at an interim date, and the entity implements new controls to correct the deficiency. If the new controls are placed in operation near year-end, the auditor may not have sufficient time to determine that

Auditing Standards

1) Analytical procedures can assist the auditor in planning by (1) enhancing the auditor's understanding of the client's business, and (2) identifying areas of greater risk of misstatement. The effective use of analytical procedures in the planning phase involves the systematic completion of the following steps: 1. Identif

Auditing Standards and Requirements

- Describe the elements of the Generally Accepted Auditing Standards (GAAS). - Describe how these standards apply to financial, operational, and compliance audits. - Explain the effect that the Sarbanes-Oxley Act of 2002, and the Public Company Accounting Oversight Board (PCAOB), will have on audits of publicly traded compani

Accounting and Auditing

1) Why is public accounting often viewed as a guarantor of results, or even as a provider of assurance that one's investment is of high quality? To what extent is it reasonable to view the auditor as a guarantor? Explain. To what extent do you believe that user expectations of the public accounting profession appear to be unwarr

Attribute or Variable Sampling

For each of the following statements, indicate whether it is more closely related to attribute sampling or variables sampling by using the letter A (attribute) and V (variables) ___ 1. The population size affects the sample size (Variable or Attribute) ___ 2. Sampling risks include the risk of incorrect acceptance and risk o

Things To Know About Auditing

Please help answer the following multiple choice questions: 1. In determining the primary responsibility of the external auditor for a company's financial statements, the auditor owes primary allegiance to: a. The management of the company being audited because the auditor is hired and paid by management. b. The audit commi

Code of Professional Conduct

The Code of Professional Conduct is very important for the auditing profession. The AICPA, State Boards, and other professional organizations spend a great deal of time and effort implementing, and reinforcing the ethical standards, and penalizing those who violate the ethical standards. I need help with answering the follo

This post addresses auditing and audit issues

1. Why do auditors find it necessary to use sampling? What are the risks associated with sampling? How might these risks affect the audit conclusion? 2. What is the importance of defining the population when performing audit procedures? How would defining the population affect the sample size? How would incorrectly defining t

Information Systems and Technology

I need some help in addressing the question below. Thank you. 1. IT Segregation of Duties: The IT Audit Director identifies an issue related to IT segregation of duties - several developers have access to production for support reasons. The VP of Application Development has stated that this access is needed to support the s

Avis Love, Staff Accountant Case

It should be a essay containing these questions about Avis Love, Staff Accountant . Please include work-cited. 1. Would it have been appropriate for Avis to substitute another store for Store 51 after she discovered the cutoff errors in that stores accounting records? Defend your answer. 2. Identify the parties potentially

precision interval, conclusion

Fishkin, CPA, is attempting to determine whether the average height of a player on a basketball team is greater than 80 inches. Based on his sample of basketball players, he determined an estimate of 76 inches with an associated precision of 10 inches. The confidence in this estimate is 90% A. What on the precision interval a

Green Corporation; Sue Ewe personal injury lawsuit

You are auditing Green Corporation for the calendar year 2010. Among other items related to the audit; Green Corporation was being sued for personal injury resulting from the malfunction of one of their products. The lawsuit was initiated by Sue Ewe in September, 2010. Management and the company's outside legal counsel estimated

Pontificate and Associates (PA) Auditing: Cite Problems

Pontificate and Associates (PA) are a regional audit firm operating in South East Ontario. Their chief partner, Louis Pontificate, received his CA in the early 1960's. Since starting his own audit firm in 1965, he has seen it grow to a firm with 25 associate partners. At the age of 71, he still works hard although he is well eno

Case 3.5 (Knapp) Goodner Brothers - Internal controls case

Goodner Brothers 1. List what you believe should have been the three to five key internal controls objectives of Goodner's Huntington sales office. 2. List the key control weaknesses that were evident in the Huntington unit's operation. 3. Develop one or more control policies or procedures to alleviate the control weakn