Questions and Answers of Auditing The Art And Science Of Assurance

Identify the four concerns that management has in establishing internal controls. Explain how each of those four concerns can be part of operational auditing.
Explain why the Auditor General of Canada performs value-for-money audits rather than simply performing financial audits of the various government departments.
For the same PV system characteristics outlined in Problem 9.5, use the LCC analysis method to assess the cost-effectiveness of the PV system compared to the grid-only option (baseline) to constant
John has discovered that his client converted to an integrated set of software packages one month prior to the year end. During the last month of the fiscal year, the client ran systems in parallel.
In addition to payroll, the costs of running Condo-Cleaners.com are web services, telecommunications, cleaning supplies, and vehicle costs. Jim pays most of these costs using his personal credit
What is meant by the term “appropriate disclosed basis of accounting”? How does such a basis differ from GAAP? When is such a basis acceptable?
On February 17, 2010, a public accountant com¬ pleted the examination of the financial statements for Buckheizer Corporation for the year ended Decem¬ ber 31, 2009. The audit is satisfactory in all
The legal environment in which a public accountant in Canada operates is changing. Discuss some of the reasons for the changes.
In late 1998 and early 1999, Your Best Magnets Inc. (YBM) offices in New York and Toronto were raided by the U.S. Organized Strike Force and the Royal Canadian Mounted Police. Records were seized,
Explain the differences among transaction-related, balance-related, and presentation and disclosure- related audit objectives.
The following are seven general presentation and dis¬ closure-related audit objectives (1 through 7) and 10 specific- balance related audit objectives for the audit of payroll and human resource
The existence of risk is implicit in the phrase “in my opinion” that appears in the auditors report. The auditor is indicating that he or she is accepting some risk that the opinion rendered may
How has the escalating role of board members and the audit committee affected corporate governance?
Describe regulatory influences on board members and management. What have been the effects of these influences?
For three organizational structure types (entrepre¬ neurial, bureaucratic, adhocracy), briefly describe the likely characteristics of corporate governance.
Provide five examples of actions that board members could take to support effective ERM.
What is the public accountants goal in auditing corporate governance?
How does the auditor document the assessment of corporate governance?
List characteristics of advanced automated information systems. Define each characteristic and provide an example.
Transom Company builds trucks. It buys components from parts manufacturers and assembles them. The company has three standard models and also designs trucks to unique specifications, in consultation
Turner Valley Hospital plans to install a database management system, Hosp Info, that will maintain patient histories, including tests performed and their results, vital statistics, and medical
It was a typical madhouse time on the night before a payroll run. Some employees were entering time cards; other employees were checking data entry lists to time cards and calling supervisors about
Big Mall Shoe Store Limited is part of a chain of shoe stores across Canada. Each store has standard point-of- sale packaged systems that are used to update sales and inventory. The stores are linked
Describe six ways to promote a culture of honesty and high ethics.
Describe how you would document your fraud risk assessment of a real estate management company.
What matters related to fraud should be communicated to the audit committee?
How does the presence of a whistle-blowing process improve quality control and independence at a public accounting firm?
Trish Mulcahy, a new junior in your office, says that she does not understand why she cannot work on the audit of a company that is a client of your firm and that is owned by her uncle. Trish says
It is your first day in auditing class, and your instructor has explained how grades are going to be earned and recorded. Attendance (worth 5 percent) is going to be tracked with sign-in sheets,
Consider switching from one large chiller (1,000 ton) to four chillers (each rated at 250 ton). Using the normalized savings shown in Figure 8.10, estimate the annual energy savings for using a multi
Determine the actual value of the $10,000 investment for the building owner in Example 3.1 if the economy experiences an annual inflation rate of 4 percent.Example 3.1A building owner has $10,000
If the building owner is in the 28 percent tax bracket, determine the actual value of his $10,000 investment considered in Example 3.1 if the economy experiences an annual inflation rate of 4 percent.
A blower door test on a 30 ft × 50 ft × 9 ft house located in Denver, Colorado, revealed that under a 4-Pa pressure differential between indoors and outdoors, the leakage area is about 200 in.2.a.
Both pressurization and depressurization tests were conducted on a residence. The residence has 950 ft2 (95 m2) of floor area with an average ceiling height of 8 ft. The results of these tests are
For a building with a 200 ft × 100 ft slab on grade floor made up of 4-in. concrete floor:a. Estimate the annual energy ground-coupled loss/gain from the building located in Denver, Colorado.b.
A house located in Denver, CO, has R-11 walls (1,650 ft2), R-19 ceiling(2,000 ft2), and R-2 windows (200 ft2). Assume that the infiltration/ventilation rate is 0.75 ACH.a. Estimate the annual fuel
Determine the SPP for using SIS for walls of a house located in Denver, CO, that has a BLC of 700 Btu/°F·hr. The cost of wall SIS retrofit is estimated to $3.5/ft2 of opaque wall area. The opaque
A utility has the following monthly billing structure for its industrial customers:A power factor clause states that the billing demand, upon which the demand charge is based, shall be the actual
The utility has added a ratchet clause to the rate structure described in Example 2.1 . Specifically, the ratchet clause states that no billing demand shall be considered as less than the 70 percent
i. Calculate the utility bill for a facility during one month characterized by the following parameters:• Actual demand: 450 kW • Energy consumption: 85,000 kWh • Average power factor: 70
The utility has added a ratchet clause to the rate structure described in Example 2.2 . Specifically, the ratchet clause states that no billing demand shall be considered as less than 70 percent of
The monthly energy consumption and peak demand history of a commercial building is shown below for one year.The commercial building is on the rate structure defined in Table Month Jan Feb Mar Apr May
The industrial facility of Example 2.1 has an option of owning and operating its own service transformer with the advantage of reduced rate structure as described below:• Customer charge =
A company consumed about 355,000 kWh of electrical energy during the month of April. The billed demand is estimated to be 600 kW for April. If the sales tax is 7 percent, calculate the electric
A manufacturing company consumes on average 250,000 kWh per month and has a billed demand of 1,200 kW during each month. The company can select between two rates: Rate-1 and Rate-2 (described below).
A utility offers the following rates to its commercial customers:The on-peak season includes the months of June through October. The off-season includes the remainder of the months of any year.The
Using utility rate structure A, calculate the utility bill for a residence during a summer month when the energy use is 800 kWh.
Using utility rate structure B, calculate the utility bill for a commercial facility during a winter month when the energy use is 70,000 kWh, the billing demand is 400 kW, and the average reactive
A company is on the utility rate structure defined as level 1 in Problem 2.5 , In auditing a company, you find it averaged as 65 percent power factor over the past year. It is on the rate schedule
Calculate the utility bills for an industrial customer serviced by OG&E under two rates:i. Conventional rate with the following charges:Customer charge: $150.00 Energy charge: $0.0264/kWh Demand
Using utility rate structure C, calculate the utility bill for a residence during a summer month when the energy use is 2,000 kWh with 55 percent of the energy consumption occurring during the
Calculate the cost savings in electric utility bills for an industrial customer serviced by the OG&E RTP rate used in Example 2.8 if the excess electrical load experienced during the curtailment
Using utility rate structure D, calculate the gas utility bill for a residence during a month when the energy use is 10.4 MMBtu.
Using utility rate structure E, calculate the gas utility bill for a commercial facility during a month when the energy use is 15,000 MMBtu and the billing demand is 500 MMBtu/day.
A building owner has $10,000 available and has the option to invest this money in either (i) a bank that has an annual interest rate of 7 percent or (ii) buying a new boiler for the building. If he
A company is considering the purchase of a new machine that will last eight years and cost $90,000 in the first year, decreasing by $1,000 each year to $2,000 in the eighth year. Determine how much
You want to buy a new machine that will last 20 years and cost $200,000. Determine how much money you should pay for this machine each year based on equal annual payments:a. If the interest rate is 5
An energy audit of a residential heating system reveals that the boiler-burner efficiency is only 60 percent. In addition, the energy audit showed that an electric water heater is used. The house
After finding that the old boiler has an efficiency of only 60 percent, whereas a new boiler would have an efficiency of 85 percent, the building owner in Example 3.1 has decided to invest the
Find the various compounding factors for N = 10 years and d = 5 percent.
An electrical energy audit indicates that the motor control center consumption is 8 × 106 kWh/year. By using high-efficiency motors, a savings of 15 percent can be achieved. The additional cost for
An electrical energy audit indicates that lighting consumes 12.5 × 106 kWh/year. By using more efficient lighting fixtures, electrical energy savings of 8 percent can be achieved. The additional
The building owner in Example 3.5 has three options to invest his money, as briefly described below.A. Replace the entire old boiler (including burner) with more efficient heating system. The old
A residential building is heated with a 78 percent efficient gas-fired furnace (costing $1,600). The annual heating load is estimated at 160 MMBtu. The cost of gas is $6.00/MMBtu. For the discount
A chiller consumes 9.5 × 105 kWh annually with an overall efficiency of 0.90 kW/ton. If this chiller is replaced by a more energy-efficient chiller (0.75 kW/ton) at a cost of $95,000, determine the
Two chillers are proposed to cool an office space. Each chiller has a rated capacity of 300 tons and is expected to operate 650 full-load equivalent hours per year. Chiller A has a standard
In most buildings and industrial facilities, electrical systems consume a significant
Consider a building with a total real power demand of 500 kW with a power factor of pfe = 0.70 . Determine the required size of a set of capacitors to be installed in parallel with the building
Provide a simple payback period analysis of lighting controls in a 10,000-ft2 office area comprised of 7,200 ft2 of open landscaped office space and 20 enclosed perimeter offices (2,800 ft2). The
Determine the cost-effectiveness of replacing a 10-hp motor with an efficiency of 85 percent with a premium-efficiency motor with a rated full-load efficiency of 91.70 percent. Assume that:• The
Two motors operate 5,000 h/hr at full load. One is 40 hp with an efficiency of 0.75 and a power factor of 0.65, and the other is 100 hp with an efficiency of 0.935 and a power factor of 0.85.
Consider a building with total 500 luminaires of four 40-W lamps/luminaire.Determine the energy saving after replacing those with two 40-W high-efficiency lamps/luminaire. This building is operated 8
Consider an aluminum fabrication plant with 400 employees that runs on three shifts for a total of 8,760 hours per year. The company spent $1.1 million in electric energy bills last year. The plant
Determine the capacitor ratings (in kVAR) to add to an 80 hp motor with an efficiency of 0.85 to increase its power factor from 0.80 to 0.85, 0.90, and 0.95, respectively.
Consider a three-story office building 50 m × 30 m located in Denver, Colorado, with a window-to-wall ratio (WWR) of 0.25 with low-E glazing, which has a visible transmittance of 0.41 . The building
Determine the cost-effectiveness of selecting a unit with an efficiency of 99.95 percent rather than 99.90 percent for a 500-kVA rated transformer. Assume that:• The cost of electricity is
For the case of a balance temperature of 65°F, compare your results with the heating degree-days for the three cities directly computed from hourly weather data (these degree-days are widely
A daylighting system using dimming controls is being considered for a five-story office building located in Denver, Colorado. A typical floor is 200 ft × 50 ft with perimeter offices extending 12 ft
Assess the impact of two devices on the current THD of a building: a 13-W compact fluorescent lamp (CFL) with electronic ballasts and a laser printer while printing.Use the data provided in Table
Determine if it is economically feasible to install number 10 (AWG) copper conductors instead of number 12 (AWG) on a 400-ft branch circuit that feeds a load of 16 amperes. Assume that:• The load
The nameplate of a motor provides the following information:a. Calculate the following parameters: the slip RPM and the power factor of the motor.b. Determine if it is cost-effective to replace this
Determine the cost-effectiveness of adding a dimming daylighting control system to a thin two-story office building (each floor is 24 ft × 1,000 ft) with a window-to-floor area ratio of 30 percent.
A blower door test has been performed in a house located in Evergreen, Colorado. The results of the pressurization and depressurization tests are summarized in Figure 6.4 based on the results of the
Estimate the heating and cooling degree-days for the base temperature, Ttb = 60°F, for Denver, Colorado, for the month of May. Use the data provided in Appendix B.Appendix B Country Albania Algeria
Consider a three-phase 1,500 kVA transformer to step down the voltage from 13.8 kV to 480Y/277 V. The transformer is old and needs to be replaced. Two options are available: (i) replace it by the
Repeat Problem 6.1 using the simplified calculation method of Schoenau and Kehrig. Use the required statistical data for the various US locations provided in the appendix. In addition to the heating
Determine the heating base-load, the balance temperature, and the BLC of a house located in Boulder, Colorado, based on the monthly utility bills provided in the following table. For the analysis
An energy audit of the roof indicates the following:It is proposed to add R-19 insulation in the roof.a. Comment on the potential energy savings of adding insulation.b. If the insulation costs
A machine shop has a 500-m2 metal frame roof that is uninsulated. Determine the payback period of adding insulation (R = 2.0 °C·m2/W). The building is electrically heated. The cost of electricity
A window upgrade is considered for an apartment building from double-pane metal frame windows (UE = 4.61 W/m2·°C) to double-pane with low-e film and wooden frame windows (UR = 2.02 W/m2·°C). The
Determine the annual energy savings due to replacement of a single-pane window (R-1) by a double-pane window (R-2). The total area of the glazing is 200 ft2. Assume the following: Heating degree-days
Consider a heated manufacturing shop with a total conditioned volume of 1,000 m3. A measurement of the air leakage characteristics of the shop showed an infiltration rate of 1.5 ACH. Determine the
Consider a house in Denver, Colorado, has the following building characteristics:• Exterior walls with a total R-value of 19 (i.e., R = 19 hr·°F·ft2/Btu = 3.35 °C·m2/W) insulation and total
Do you recommend adding R-20 insulation to a 25,000 ft2 uninsulated roof (R-5) when you consider a 25-year life cycle with a rate of return of 8 percent? Assume the following: Heating degree-days
A 50-hp constant-volume fan is to be retrofitted to a variable-volume fan. Three options are considered:The fan is operated 5,500 hours per year. If the cost of electricity is $0.08/kWh and the
A thermal process within a facility rejects 10,000 lbm/hr of hot water (Tout = 190°F). An energy audit of the facility revealed that instead of using an open water system, which feeds fresh cold
A 50,000-cfm CV AHU is to be converted to a VAV system. The motor for the existing supply fan is rated at 35 hp with 90 percent efficiency. The fan is operated for 3,500 hours/year according to the
An office building has a two-level enclosed parking garage with a total capacity of 450 cars, a total floor area of 8,300 m2 (89,290 ft2), and an average height of 2.75 m (9.0 ft). The total length
A heat exchanger is considered to recover heat from the exhaust air of a 5,000-cfm laboratory makeup air system located in Denver, Colorado. The indoor temperature within the laboratory is kept at
Consider a 200,000-ft2 enclosed parking garage that can hold 1,000 cars.a. Determine the size of the supply/exhaust fans to ventilate this garage if 1.5 cfm/ft2 are required. Assume a fan pressure of

Showing 1 - 100 of 324