6. Which of the following combinations of procedures would an auditor be most likely to perform to obtain evidence about fixed-asset additions? a.Inspecting documents and physically examining assets. b. Recomputing calculations and obtaining written management representations. c. Observing operating activities and comparing b
1. Explain how "rules-based" accounting standards differ from "principles-based" standards. How might fundamentally changing accounting standards from "bright-line" rules to principle-based standards help prevent another Enron-like fiasco in the future? Are there dangers in removing "bright-line" rules? What difficulties might b
I need to work on a position Paper regarding auditing woes. I know that the private sector has had several high profile incidents of poor or illicit auditing. Based on this revelations, is the function of financial auditing ineffective in the public and nonprofit sector? In recent years, some independent auditors have
Why is important to place emphasis on the existence and rights (ownership)assertions when auditing accounts receivable? Whic audit procedures are usually the most useful for auditing the existence and rights assertions? What analytical procedures might be informative regarding the existence assertion?
Merry-Go-Round (MGR), a clothing retiler located primarily in shopping mall,was founded in 1968. By the early 1990's the company hd gone public, and had expanded to approcimately 1500 stores, 15000 employess and $1 billion in annual sales. The compan's locations in malls targeted the youth and teen market. The company was lis
This posting contains an APA formatted MS Word file that address the various processes and steps that are involved in the auditing procedure.
An audit consists of both tests of controls and substantive testing of financial statement assertions. Which are more important, tests of controls or substantive tests? Why?
One of the auditing standards states, "In all matters relating to the assignment, an independence in mental attitude is to be maintained by the auditor or auditors." Explain the concept of independence. Why is this important?
a. What are the different types of audit reports and when should each be used? b. In what types of situations would an auditor be allowed to issue an unqualified audit report. c. To what extent is the auditor liable for misstatements in the financial statements of the audited company?
This file contains a formatted MS Word file containing multiple choice questions on the subject of Auditing Categories and Standards
This posting contains an APA formatted MS Word file containing information in regards to the responsibilites of an auditor in the performance of their duties; including their responsibility for discovering of subsequent events occurring after completion of fieldwork but before issuance of the audit report, and what must be don
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3. Sprite Co. reports income of $300,000 from continuing operations before income taxes and a before-tax extraordinary loss of $80,000. All income is subject to a 30% tax rate. In the year's income statement, Sprite Co. would show the following line-item amounts for income tax expense and net income: $66,000 a
Why does the CPA use the test data approach
REQUIRED: Indicate the best answer choice for each of the following. 1.The expenditure cycle would include: a. the purchase of another entity's stocks. b. the purchase of treasury stock. c. payroll transactions. d. payments by check. e. the purchase of another entity's bonds. 2.The specifi
True/False REQUIRED: For each of the following items, indicate whether it is (T) True or (F) False. For those marked False, identify the error(s) and indicate the change or changes that are needed to make the statement true. 1. The expenditure cycle includes payroll transactions. 2. All purchase cycle disclo
16-34 (Potential misstatements/control activities for payroll) The Kowal Manufacturing Company employs about 50 production workers and has the following payroll procedures. The factory foreman interviews applicants and on the basis of the interview either hires or rejects the applicants. When the applicant is hired, a W-
True/False REQUIRED: For each of the following items, indicate whether it is (T) True or (F) False. For those marked ¿False,¿ identify the error(s) and indicate the change or changes that are needed to make the statement true. 1) The accounts receivable generated by credit sales transactions are nearly
Your CPA firm has just been engaged as the independent auditors for Drotos Theaters. The theater chain is opening a new theater in one month. Because of recent attention on the Sarbanes-Oxley Act, the main investment banking firm for Drotos' corporate operations has expressed concerns about internal control. Because of this, you
Do you think that Policies and Procedures and supporting documentation are useful for all processes in a company? Why or why not? Explain?
Assume that Anne completed the audit and issued an unqualified opinion. She resolved the fuel reconciliations issue with the use of analytical procedures - comparing inventory levels for each of the past 5 years. During March, the neighboring site to the Browns' gas station was sold. As part of the financing to purchase it, an e
Agree or disagree? if disagree, please give simple explanation 1. Attribute sampling estimates the proportion of items that contain a percentage of error and can be used in tests of balances. 2. In applying the concept of materiality, the auditor must identify misstatements from the sample selected, calculate likely missta
Lenter Supply Corp. is a medium-sized distributor of wholesale hardware supplied in southern Manitoba. It has been a client of yours for several years and has instituted excellent internal control for sales at your recommendation. In Providing control over shipments, the client has prenumbered"warehouse removal slips" that a
Case 2.1 (Doughtie's Foods, Inc.) In the late 1970s, William Nashwinter accepted a position as a salesman with Doughtie's Foods, Inc., a publicly owned food products company headquartered in Portsmouth, Virginia.1 The ambitious young salesman impressed his superiors with his hard work and dedication and was soon promoted to gen
Please access the Securities and Exchange Commission website through www.sec.gov and select any public traded company. The objective of your assignment is to design audit programs for cash and inventory. As part of the assignment you must include the following information: 1. The name of the company and a brief descript
Which auditing assertion is most important for the fair presentation of financial statements?
To determine whether sales transactions have been recorded in the proper accounting period the auditor performs cutoff tests. Which of the following best describes the overall approach used when performing cutoff tests? A) Ascertain that management has included in the representation letter a statement that transactions have b
Given the increased emphasis on corporate fraud, should auditors be required to look aggressively for fraud factors like collusion, circumvention, and management override? Why or why not?
John Harris, CPA, has been engaged to audit the financial statements of the Spartan Drug Store, Inc. Spartan is a medium-sized retail outlet that sells a wide variety of customer goods. All sales are for cash or check. Cashiers utilize cash registers to process theses transactions. There are no receipts by mail and there are no
1. Which of the following pairs of accounts would an auditor most likely analyze on the same audit documentation? A) Notes receivable and interest income. B) Accrued interest receivable and accrued interest payable. C) Notes payable and notes receivable. D) Interest income and interest expense. 2. Reference in