Information for CPA's providing auditing or assurance services: *Keeping up with the changing ways companies do business *Factoring in the way businesses have gotten more sophisticated over the last ten years *Understanding how changes in the world economy affects how CPAs do their job.
Why is the segregation of duties is so important. What type of audit procedures should be used to determine whether lack of segregation of duties might permit loss of cash?
A CPA's audit working papers include the narrative description below of the cash receipts and billing portions of the internal control of Parktown Medical Center, Inc. Parktown is a small health care provider owned by a publicly held corporation. It employs seven salaried physicians, 10 nurses, three support staff in a common la
Michael Green, CPA, is considering audit risk at the financial statement level in planning the audit of National Federal Bank (NFB) Company's financial statements for the year ended December 31, 20X1. Audit risk at the financial statement level is influenced by the risks of material misstatements (including fraud risks), which
What is the difference between assurance services, attestation services, and auditing services? What are the economic issues that drive the increased demand for assurance services? What is one assurance engagement and one attestation engagement other than an audit of financial statements? What are the differences between the two
Hello. I need help with the ones I have not completed below. The ones with an X next to the answer are already answered and do not need to be looked at. I also need some indication as to why you answered each question the way you did. Thanks. ----------------- Answer Questions Enter X in the appropriate box Sta
O Describe the elements of the Generally Accepted Auditing Standards (GAAS).
1. Assume you are an auditor of a small, publicly held "parts" supplier in Detroit. Its major clients are the auto companies, although they do support some appliance manufacturers and the airline industry. What type of questions would you ask about management's plan to replace reduced sales from auto manufacturers? 2. The U
Wilmont Electronics' profit has been less than expected for the past several quarters. After an internal audit, it was determined that inventory losses have been rising over the past year, which has accounted for the majority of the profit loss. The audit uncovered the following problems: - inaccuracy in reporting receipted
Multiple Choice Auditing questions (annual vacations, misstatements in the expenditure cycle, and more...)
I need help with these multiple choice on Auditing... ----------- 1. The audit objective, "The accounts receivable balance represents gross claims on customers and agrees with the sum of the accounts receivable subsidiary ledger" is derived from the assertion of: a. existence or occurrence. b. completeness. c. rights
Attach sheet details the questions.
The recent frauds and corporate scandals similar to Merck, AIG, Enron, Worldcom, Tyco, and Imclone what is the potential legal and ethical issues to data analysis organizations. What did the company misuse data to support their decisions? What was the end results, what was the limitations and significance of the data and were th
In the attached file are some questions about auditing (see attachment for reference). Please answer questions in point form.
1. Research has shown that the relationship between eye contact and deception a. is nonexistent b. is positive in that eye contact increases as the level of deception rises c. is negative in that eye contact decreases as the level of deception increases d. depends on the interviewer-interviewee relations
Please see the attached file containing 50 multiple choice audit questions.
1. Observation of inventories is a required audit procedure whenever a. inventories are material. b. inventories are material and it is practicable and reasonable. c. it is practicable and reasonable. d. the auditor considers it to be necessary. e. inventories are material and the auditor considers it to be necessary.
Can anyone help with the following study guide? Thank you. 1. Define lapping and give an example. 2. What is a substantive test of transactions? How would it be applied to accounts receivable an inventory? 3. What is the difference between a positive and negative confirmation? When are they used and why? 4. List the
On October 21, Rand & Brink, a CPA firm, was retained by Suncraft Appliance Corporation to perform an audit for the year ended December 31, A month later, James Minor, president of the corporation, invited the CPA firm's partners, George Rand and Alice Brink, to attend a meeting of all officers of the corporation. Mr. Minor op
1. A company has a large amount of goods returned during the last month of the fiscal year and the first month of the new fiscal year. Returns are sometimes done for exchanges. The returns were recorded when credit memos were issued usually between 6 to 8 weeks after weeks from the return of the goods. The procedure that would
Auditing and CPAs are discussed: possible defense against litigation for deficiency in audit of accounts receivable.
In confirming accounts receivable on December 31, 2007 the auditor found 15 discrepancies between the customers' records and the recorded amounts in the accounts receivable master file. A copy of all confirmations that had exceptions was turned over to the company controller to investigate the reason for the difference. He, in
Your client, a manufacturer of computer components, has experienced slowing demand for its product. Recently, it cut back from three shifts a day to two shifts a day, and the company has eliminated the backlog of orders that existed in prior years by providing financing to customers. Newspaper reports indicate that competition h
CSSC wants to be ensured that the audit report for year-end 2005 is a standard unqualified audit report. Management has requested that you create a presentation about how to obtain an unqualified audit report. Include the following details: - What are the circumstances that could prevent the external auditors from providing a
You have learned that the internal control framework for most U.S. companies is the Committee of Sponsoring Organizations of the Treadway Commission (COSO) Internal Control-Integrated Framework issued in 1992. Complete the following: Identify the Treadway Commission discussing its origin, history, and purpose. List the
To properly assess the internal controls in place at CSSC, you have found that there are three major objectives that an entity should follow in designing an effective internal control system: - reliability of financial reporting - efficiency and effectiveness of operations - compliance with laws and regulations Explain w
Successfully operational auditing starts with the auditor having an understanding of the following: 1. what consists of its core products, 2. business units, and 3. employee and customer base. How can the auditor begin to survey the business to begin to put an audit plan together? What resources are available or shou
I have a multiple choice practice test/study guide for my auditing class below. Please help with the answers for this study guide. 1. The definition of auditing states that the auditor A. objectively obtains evidence B. is independent C. must evaluate internal control D. none of the above
Please see the attached file.
17-27 (Substantive tests for stockholders' equity balances) Jones, CPA, the continuing auditor of Sussex, Inc., is beginning the audit of the common stock and treasury stock accounts. Jones has decided to design substantive tests with control risk at the maximum level. Sussex has no par, no stated value common stock, and acts a
REQUIRED: (1).Comment on the following: "Auditors must decide, based on cost considerations, whether to test the design effectiveness or operating effectiveness of controls." (2).Comment on the following: "All controls should be tested either prior to or on the 'as of ' date." (3).If an adverse internal control report is
REQUIRED: (1) Discuss management's four overall responsibilities with respect to internal control over financial reporting that arise from the SEC's implementation of the Sarbanes-Oxley Act of 2002. (2) Discuss what is meant by a "walkthrough." Must walkthroughs be performed during audits of internal control over financial r