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External Auditing

CPA Auditing Services

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.

Egregation of duties importance

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?

Reportable Condition: Potential Misstatement

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

Auditor Roles and Responsibilities

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

Auditing Practice Final Exam

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

Auditing Question: Going concern issue in an auto industry audit

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

Auditing

Attach sheet details the questions.

Company Fraud

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

Auditing

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

Auditing Multiple Choice

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.

Define lapping and give an example.

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

Rand & Brink Auditing Procedures: evaluate company ideas

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

Auditing procedures: 15 MCQ

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

Modern Auditing - Risk of Material Misstatement

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

Auditing: CSSC Unqualified Audit Report

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

Auditing: COSO Internal Control-Integrated Framework

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

Auditing CSSC: design an effective internal control system

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

20 Auditing Multiple Choice Questions

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

Auditing

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

Auditing

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

Auditing

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