All Matches

Solution Library

Expert Answer

Textbooks

Search Textbook questions, tutors and Books

Oops, something went wrong!

Change your search query and then try again

Result Not Found

Books FREE
Tutors
Study Help
Hire a Tutor
AI Study Help New

Search
Sign In
Register

study help
business
auditing

Questions and Answers of Auditing

1. The auditor is auditing sales and accounts receivable and notes the following: (a) The company regularly does not follow its credit policies; rather it routinely overrides the credit policy when
Following is a portion of management's report on internal control by Milacron Inc. in 2004. Item 9A. Controls and Procedures Disclosure Controls and Procedures (Interim Analysis) Disclosure controls
Planning for an integrated audit consists of eight steps that lead to audit testing of controls and financial statement account balances. Required a. Describe the eight steps of an integrated
The PCAOB allows the auditor to use the work of others, such as internal auditors or other company personnel, to alter the nature, timing, or extent of the auditor's own testing of internal
The introduction to this chapter contained the following quotes from an IMA paper:The requirement to report on internal control resulted from one particular type of internal control breakdown: senior
Assume that the auditor's tests of internal controls did not reveal any material weaknesses in controls. However, during the audit, a material misstatement in an important account was found. Does the
Describe the major elements of PCAOB Auditing Standard No. 5 and how it has affected practice.
Review the external auditor's report on the integrated audit of Ford Motor Co. contained in the chapter material. What are the important elements in that report related to internal control?
Hermanson, D., & Ye, Z. (2009). Why Do Some Accelerated Filers with SOX Section 404 Material Weaknesses Provide Early Warning under Section 302? Auditing: A Journal of Practice & Theory 28(2):
In the overview of audit procedures, five different activities are identified in the evidence gathering and evaluation process. What are those activities and why is it important that each is
For audits under the jurisdiction of the PCAOB, auditors must document significant findings or issues and actions taken to address them. One of the significant findings that auditors are required to
What are the purposes of an audit program? What are the major issues that should be addressed in an audit program?
Consider the "Earnings Management" example for Ford and General Motors in the chapter section "Auditing Account Balances Affected by Management's Estimates" as background. Why might it be difficult
1. The sufficiency of audit evidence is determined by: a. The reliability of the audit evidence. b. The quantity of evidence gathered. c. The risk of material misstatement of the assertion being
Auditors routinely encounter client entries or financial accounting choices that are inconsistent with the financial statement assertions.Requireda. For each of the following, indicate what account
You are planning the audit of the PageDoc Company's inventory. PageDoc manufactures a variety of office equipment. Required Describe how each of the following procedures could be used in the audit of
In this chapter, several different kinds of audit evidence were identified. The following questions concern the relevance and reliability of audit evidence.Requireda. Explain why confirmations are
Audit documentation represents the auditor's accumulation of evidence and conclusions reached on an audit engagement. Prior-year audit documentation can provide insight into an audit engagement that
The following equipment schedule was prepared by the client and audited by Sam Staff, an audit assistant, during the calendar year 2011 audit of Roberta Enterprises, a continuing audit client. As
Exhibit 7.3 is a depiction of the sources of evidence. The auditor gathers:● Knowledge about the client● Information about internal controls● Accounting process information-tests of account
The Professional Judgment in Context scenario at the beginning of the chapter introduced excerpts from the PCAOB inspection of Deloitte & Touche, LLP. The scenario is: On May 4, 2010, the PCAOB
The International Standards on Auditing require the auditor to gather sufficient appropriate evidence to ensure that the auditor has a reasonable basis for an opinion regarding the financial
Adecco SA is the world's largest temporary employment company. It lost several major accounts because customers felt it was not adequately serving their complex staffing needs. It announced that it
As reported in the Wall Street Journal (September 11, 1989), MiniScribe, Inc., inflated its reported profits and inventory through a number of schemes designed to fool the auditors. At that time,
In Ford Motor Company's Annual Report, management disclosed the following risk factors that might affect the financial statements going forward. a. Continued decline in market share, and a market
The purpose of this case is to provide you with an example of a decision setting in which we will explore the ethical issues involved in conducting audit procedures. This case is based on an actual
To what extent are the concepts of sufficiency and relevance related to audit risk? Explain in terms of audits for which the auditor has determined that the level of audit risk will be low vs. an
ISA 200 identifies four major sources of audit evidence. What are these sources of evidence, and what are the components of each? Why is it important for the auditor to consider all four sources of
Explain how information about the client, including previous audit work, client acceptance/continuance judgments, and the client's business risk are each relevant in developing comprehensive evidence
Audit firms must be profitable and at the same time manage audit risk at a sufficient level to remain in business. Explain the tension between "making money" and managing the risk of the audit firm,
Academic research addresses the conceptual issues outlined in this chapter. To help you consider the linkage between academic research and the practice of auditing, read the following research
Identify the three main approaches the auditor might use to gather and evaluate audit evidence.
What information is needed to design a MUS sample? Where does the auditor gather such information?
All else being equal, what is the effect on a MUS sample size of an increase in: a. Tolerable misstatement? b. Expected misstatement? c. Detection risk? d. Population size?
An auditor evaluating a MUS sample of accounts receivable confirmations receives a confirmation response and has to determine whether the difference reported is due to (a) An error on the part of
Explain how GAS can test for control effectiveness. For example, describe how an auditor could use GAS to identify whether a company has allowed credit to customers that do not meet its credit
In which ways can GAS assist the auditor in planning and executing statistical sampling?
What is the relationship between the auditor's use of an analytical procedure and a client estimate?
Assume that the auditor concludes that detection risk must be very low. The auditor proposes that sales be audited by examining the relationship of sales and cost of sales to that of the previous two
Describe how each of the three approaches to gathering audit evidence discussed in this chapter can be used to test the five financial statement assertions: existence, completeness, rights,
a. Sampling risk is 10%. Determine the sample size for each of the following controls:b. Explain why the sample sizes for controls 2 and 3 are different from those for control 1. c. What is the
The auditor uses MUS to select accounts receivables for confirmation. In confirming individual accounts receivable balances, your client's customers reported the exceptions listed
The auditor must quantify the following parameters when using MUS sampling: 1. Tolerable misstatement 2. Expected misstatement 3. Risk of incorrect acceptance Required Describe each of these
The auditor is designing a MUS sample to determine how many accounts receivable confirmations to send. There are 2,000 customer accounts with a total book value of $5,643,200. The estimate of likely
You are planning the confirmation of accounts receivable. There are 2,000 customer accounts with a total book value of $5,643,200. Tolerable misstatement is set at $175,000, expected misstatement is
You are auditing the inventory of Husky Manufacturing Company for the year ended December 31, 2009. The book value is $8,124,998.66. Tolerable misstatement is $400,000 and expected misstatement is
The auditor wishes to use GAS to assist in the audit of accounts receivable. The auditor's major objectives are to: • Evaluate existence by sending confirmations to customers. • Evaluate adequacy
In your group, use the Internet to locate the financial statements for a company that you are familiar with. Identify specific account balances for which analytical procedures would be appropriate
Assume that you are a senior on an engagement and a member of your team has posed the following questions to you. How would you respond? Also discuss the relevance of professional skepticism. a. I
A MUS sample results in a number of misstatements, the sum of which is not material. The auditor can project a most likely error and can compute an upper error limit. Which one is the most
Academic research addresses the conceptual issues outlined in this chapter. To help you consider the linkage between academic research and the practice of auditing, read the following research
What is professional skepticism? How is it applied when assessing the fraud risk of an organization, and then auditing that organization for the risk assessed by the auditor?
Which major oversight groups failed in their professional responsibilities in the Enron case? How did each group fail? What were the motivations that influenced each group that partially led to the
Fraud has always existed, but it seems that the attitude toward fraud may be changing. What are the major changes in the Josephson Institute's survey of high school students' attitudes toward lying
What are some procedures the auditor can use to investigate the likelihood that fraud might exist in a company's accounts? The procedures should relate to identifying the potential existence of
Explain the auditor's responsibility for reporting the following: • A defalcation that the client is willing to correct and portray in the financial statements • A defalcation that is material,
In your opinion, should auditors be required to report a material fraud (consider both a defalcation and preparation of fraudulent financial reporting) that was detected during the audit to: •
Explain what procedures the auditor should employ upon identifying fraud risk factors.
Audit software can be very useful in analyzing data and identifying potential fraud. Identify the major fraud-related procedures that can be performed using audit software.
Professional skepticism has been emphasized as an important part of the audit process. However, the need to continually emphasize skepticism implies that auditors have a difficult time remaining
The text describes the Madoff Ponzi scheme, as well as other Ponzi schemes. All of the schemes require elements of both trust and greed. Since Madoff's Ponzi scheme was uncovered, many others have
Fraud continues to occur at smaller organizations at a rate higher than that of larger organizations. Explain why this is the case.
The following scenario and analytical information describe a company. Three sets of facts are presented about this company. Perform a brainstorming analysis identifying all the factors that will
Assume that your client possesses the following characteristics associated with the fraud triangle: Incentives: • Need to obtain additional debt or equity financing to stay competitive, including
An auditor may consider a number of factors when identifying opportunities to commit fraud. The following represent areas that have often been associated with frauds. Situations Often Associated with
The following set of scenarios is adapted from "Test Your Ethical Judgment" by Kay Zekany, Strategic Finance November 1, 2007 and from the Institute of Management Accountants. Each of the scenarios
The following facts represent the audited financial statements of a public company for 2011 and 2010, along with management's representation regarding the unaudited amounts (i.e., the UNAUDITED
Hoffman, V. B., & Zimbelman, M. F. (2009). Do Strategic Reasoning and Brainstorming Help Auditors Change Their Standard Audit Procedures in Response to Fraud Risk? The Accounting Review
What steps would the auditor take in performing an integrated audit?
How would the steps outlined in your answer to Review Question 10-10 differ if the auditor were not performing an integrated audit?
One of your audit clients manufactures fishing boats and sells them all over the country. Boats are sold to dealers who finance their purchases on a floor-plan basis with their banks. The banks
Stainless Steel Specialties (SSS) is a manufacturer of hot water-based heating systems for homes and commercial businesses. The company has grown about 10% in each of the past five years. The company
Field, CPA, is auditing the financial statements of Miller Mailorder, Inc. (MMI) for the year ended January 31, 2012. Field has compiled a list of possible risks, including both errors and fraud,
In assessing the risks associated with revenue recognition, the auditor will likely consult criteria provided by the SEC. What criteria has the SEC used to help determine if revenue can be
The following table includes a common risk in the revenue cycle that might be present at an audit client. For the risk, identify the relevant financial statement assertion and identify controls,
Bert Finney, CPA, was engaged to conduct an audit of the financial statements of Clayton Realty Corporation for the month ending January 31, 2012. The examination of monthly rent reconciliation is a
The following sales were selected for a cutoff test of Genius Monitors, Inc., for the December 31, 2012, financial statements. All sales are credit sales and are FOB shipping point. They are recorded
As part of the audit of KC Enterprises, the auditor assessed control risk for the existence and valuation assertions related to accounts receivable at the maximum level. Katie, the staff person
You are auditing accounts receivable of HUSKY Corp. as of December 31, 2009. The accounts receivable general ledger balance is $4,263,919.52. The data files must be downloaded from the website
Review the Auditing in Practice feature focusing on the inappropriate actions of Robert A. Putnam, the engagement partner on the HBOC audit. In this case, we expand on the problems detected in the
Academic research addresses the conceptual issues outlined in this chapter. To help you consider the linkage between academic research and the practice of auditing, read the following research
Describe some of the common fraud schemes that affect the inventory and cost of goods sold accounts. Discuss in small groups or in the class as a whole instances in which students have experienced or
Compare worldwide professional guidance on auditing inventory accounts. What are the key requirements?
Why might a company understate expenses? Why might a company overstate expenses? How might a company accomplish these inaccuracies? For the auditor, how does professional skepticism play a role in
1. The auditor's inventory observation test counts are traced to the client's inventory listing to test for which of the following financial statement assertions? a. Completeness b. Existence c.
The SEC alleged that many deficiencies occurred during the audit of CMH, as discussed in the Auditing in Practice feature in this chapter. Among the complaints were the following:1. The audit firm
Assume that you are conducting the audit of CollegeWare, a publicly held manufacturer and distributor of printed, embroidered, and embossed specialty clothing and gift items marketed to college
The Professional Judgment in Context feature at the beginning of the chapter and the Auditing in Practice feature about CMH both describe scenarios whereby people with accounting or auditing
Academic research addresses the conceptual issues outlined in this chapter. To help you consider the linkage between academic research and the practice of auditing, read the following research
Toyco, a retail toy chain, honors two bank credit cards and makes daily deposits of credit card sales in two credit card bank accounts (Bank A and Bank B). Each day, Toyco batches its credit card
The following client-prepared bank reconciliation is being examined by Kautz, CPA, during an examination of the financial statements of Concrete Products, Inc.:Required Identify one or more audit
Aldhizer, G. R. & Cashell, J. D. (2006). Automating the Confirmation Process. The CPA Journal.76(4):28-32. Also available at www.nysscpa.org/cpajournal/2006/406/essentials/p28.htm. i. What is the
Describe and compare worldwide professional auditing guidance on the use of subject-matter specialists/experts in auditing long-lived assets and related expense accounts.
In Terex Corporation's 2009 Annual Report, the company's CEO, Ronald Defeo, made this statement regarding the recessionary times that his company is facing: I like to say that, "when you are in a
Your audit firm has been the auditor of Cowan Industries for a number of years. The company manufactures a wide range of lawn care products and typically sells to major retailers. In recent years,
In the Professional Judgment in Context case at the beginning of this chapter, we reviewed some of the pertinent findings from the COSO (2010) study on fraudulent financial reporting. The study notes
Acito, A. A., Burks, J. J., & Johnson, W. B. (2009). Materiality Decisions and the Correction of Accounting Errors. The Accounting Review 84(3):659-688. i. What is the issue being addressed in the
Explain how a bond amortization spreadsheet might be used to audit interest expense over the life of a bond.
In 2010, Nelson Communications purchased a controlling interest in Telnetco that resulted in goodwill in the 2010 consolidated financial statements of $4,500,000. There are no other intangible
One of the Auditing in Practice features in the chapter discusses Ford Motor Company's reducing a large portion of its other postretirement benefits by transferring its liability to the UAW Union

Showing 9300 - 9400 of 10295

First
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
Last

Services

Sitemap
Fun
Definitions
Become Tutor
Study Help Categories
Recent Questions
Expert Questions

Company Info

Security
Copyrights
Privacy Policy
Terms & Conditions
SolutionInn Fee
Scholarship

Get In Touch

About Us
Contact Us
Career
Jobs
FAQ
Campus Ambassador

Secure Payment

Download Our App

© 2024 SolutionInn. All Rights Reserved