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
Ask a Question
AI Study Help New

Search
Sign In
Register

study help
business
principles of auditing

Questions and Answers of Principles of Auditing

In each of the following situations, indicate the nature or type of non sampling risk that caused the error to occur.a. Letters were sent to accounts payable vendors for each amount recorded on the
The auditor examined a sample of invoices supporting expenditures charged to repairs expense. No misclassification of any expenditure was found. Later, a material amount of expenditures was
For each of the following procedures, indicate whether sampling would or would not be used. Give reasons for your answers.a. Examinations of marketable securities.b. Confirmation letters sent to
What assertions does management make regarding the financial statements taken as a whole?
What are control risk assessment procedures?
What are the general guidelines as to what working papers should include?
Explain the general concept of the organization of working papers in the current files.
To what extent may an independent auditor use the client’s internal audit staff?
Which of the following statements concerning working papers is incorrect?a. An auditor may support an opinion by other means in addition to working papers.b. The form of working papers should be
In planning a new engagement, which of the following is not a factor that affects the CPA’s judgment as to the quantity, type, and content of working papers?a. The content of the client’s
For each one of the following statements, indicate whether the statement is true or false.a. During the early 1900s a statutory requirement for audits resulted in rapid development of the accounting
The following questions relate to financial auditing and auditing standards. Select the best response.a. The first general standard requires that a person or persons have adequate technical training
The following questions relate to audit reporting standards. Select the best response.a. The first standard of reporting requires that, "the report shall state whether the financial statements are
The following questions relate to modification of the standard audit report. Select the best response. a. When the client fails to include information that is necessary for the fair presentation of
List several reasons the following types of organizations would want to have an annual audit by a CPA. Church Municipal government Local United Fund organization Labor union National hobby
The following statement on one objective of an audit appeared in Principles of Accounting by William A. Paton and Russell A. Stevenson, published by The Ann Arbor Press in 1916: A large number of
In connection with current problems relating to audited financial statements it has been stated that: The bulk of the problems can be traced to a single crucial flaw in the basic structure (of the
The independent auditor issues a report at the end of the audit. Refer to the standard report in the chapter. 1 What is the difference between (a) "generally accepted auditing standards" and (b)
It has been observed that "there is a certain apparent similarity between notes to financial statements and qualifications in the auditor's report: both are means by which the auditor may be certain
On page 29 is an actual auditor's report rendered in 1927 by Touche, Niven & Co., on the financial statements of The Studebaker Corporation. 1 Explain what representations are made by the
Discuss the following observation recently made by a businessman: "Published financial statements should be designed to enable the efficiency and skill of management to be evaluated."
The following statements refer to the standard auditor's report. List the numbers of the statements that are not appropriate in the currently used report. 1. We have examined the balance sheet. . .
Minker expresses an unqualified opinion concerning the financial statements of the Zee Company, in which statements the basis of valuation of the fixed assets is not shown. She is aware of the fact
Coleson is practicing on his own account and has audited the books of the Koltron Company for many years. This year, as a result of a press of duties, he is able to spend only enough time to read the
In the South African Chartered Accountant's Handbook, the following statement appears: The term "Auditing Principles and Standards" appears to connote or to suggest one proposition and it is perhaps
Beth Jones & Co. has grown from a small firm that originally included only Ms. Jones and one junior accountant to a regional firm with 7 partners and 21 professional staff members occupying four
Until about 1945, staff accountants were hired at very low pay on a seasonal basis. They often worked only from December through the following March to become unemployed, at least as auditors, until
Technical accounting and auditing ability, supervisory ability, public relations ability, good judgment, and general decision-making ability are all important to the operation of an audit firm. Which
Sidney Wells is an individual practitioner. In addition to himself, he maintains a professional staff of five auditors, and his firm is a member of a regional group of CPA firms. Wells is considering
Large CPA firms take two different approaches to the scheduling of professional staff members to audit engagements. Some firms schedule staff members individually. Using this approach, a new staff
Independence is one characteristic that distinguishes independent auditing from inter- nal auditing. The Institute of Internal Auditors, however, stresses the importance of independence in the
The GAO has adopted standards for performance audits. The second field work standard states: Staff are to be properly supervised. The fourth field work standard for government performance audits is:
Distinguish between a performance audit and a financial audit.
The U.S. Governmental Accounting Office "Yellow Book" states that the third field work standard for government performance audits is: An assessment is to be made of compliance with applicable
Following are the financial statements of the Anchor Manufacturing Corporation and the auditor's report for the year ended January 31, 19X4. The audit was conducted by James Haas, an individual
For each one of the following statements indicate whether the statement is true or false.a. The essential difference between professional and nonprofessional work is the professional's need for
The following questions relate to quality control and peer review. Select the best response. a. A firm of CPAs may use policies and procedures such as notifying professional personnel as to the
The following questions relate to the auditors' legal liability. Select the best response.a. DMO Enterprises, Inc., engaged the accounting firm of Martin, Seals & Anderson to perform its annual
This question relates to the attribute of independence associated with the CPA's function of auditing and expressing opinions on financial statements. Required: a. What is meant by "independence" as
Bald Eagle Corporation was formed on October 1, 19X4, and its fiscal year will end on September 30, 19X5. You audited the corporation's opening balance sheet and rendered an unqualified opinion on
During 19X6 your client, Mark Corporation, requested that you conduct a feasibility study to advise management of the best way the corporation can utilize electronic data processing equipment and
Winston Gould is the controlling shareholder of Gould, Inc., a closely held corporation. He has expressed dissatisfaction with his present auditors and informs Henry Cramer, a CPA and member of the
In each of the following unrelated circumstances, explain what course of action a CPA should follow in order to discharge his or her professional and ethical responsibilities: 1. Nobles is employed
A firm of certified public accountants is considering the use of an outside mailing service to handle confirmations of the accounts receivable of clients upon whose financial statements the firm is
Carlson, a CPA, is engaged in a fee dispute with a client. Carlson has in his possession various client records and decides to withhold them until such time as the client satisfies his bill. He notes
Legally, the SEC has the authority to specify accounting principles and practices and thereby completely regulate accounting practice. It has chosen not to do this, but rather to work with the AICPA
1 What is the legal relationship of an independent accountant (auditor) to a client? Explain. 2 What is the legal duty of skill and care that the accountant-client relationship imposes upon the
Factory Discount Prices Inc., is a chain store discount outlet which sells women's clothes. It has an excessively large inventory on hand and is in urgent need of additional cash. It is bordering on
For each one of the following statements indicate whether the statement is true or false.a. Each of the standards of field work is independent and describes a separate goal of the auditor in auditing
The following questions relate to types of audit tests. Select the best response. a The auditor is examining copies of sales invoices only for the initials of the person responsible for checking the
The following questions relate to evidential matter and work papers. Select the best response. a. Audit evidence can come in different forms with different degrees of persuasiveness. Which of the
In the chapter there is an illustration of specific audit objectives for inventory developed from the broad categories of assertions. For the account balance accounts receivable, develop one specific
In the chapter there is an illustration of specific audit objectives developed from the broad categories of assertions for inventory. For the account balance accounts payable, develop one specific
Five broad categories of assertions apply to account balances and classes of transactions. Identify and explain the aspects of each assertion that apply to transac- tions and those that apply to
Using the illustration of specific audit objectives for inventory in the chapter, identify the general categories of audit procedures that could be used to achieve the audit objective and give at
Listed below are errors that the application of audit procedures may detect related to inventory. For each error identify the broad category of assertion involved. a. Some inventory items are out on
Indicate which one item in each of the following groups of items of evidence you would consider to be of superior reliability, and briefly explain why. 1 In support of the recorded cost of purchased
You have been instructed to audit the financial statements of Christi Manufacturing Company. You are furnished the following condensed balance sheet:Your assistant will be carrying out most of the
You are engaged to audit the financial statements of a central school district. The district has an elected treasurer and a clerk of the board of education who is appointed by the board. Each of
Listed below are specific audit procedures. For each procedure indicate the type of error the procedure would be likely to detect and the broad category of assertion to which it is related. a.
Substantive tests include (1) tests of the details of transactions, (2) tests of the details of balances, and (3) analytical procedures. Listed below are several specific audit procedures. Identify
The following audit procedures may be used in tests of controls and substantive tests. Give one example of use as a test of controls and one example of use as a substantive test for each
An auditor frequently makes comparisons. For each of the following comparisons indicate whether the audit test is a (1) test of controls, (2) test of details of transactions, (3) test of details of a
Miller and Flood, certified public accountants, were employed for several years by the Retrograde Corporation to make annual audits. As a result of a change in control, the corporation discontinued
Day, a CPA who has been practicing alone, decides to "sell his practice" to Knight. As a part of the transaction Knight asks Day to turn over to her all his files and work papers. One client, John
For several years Martin engaged Watson, a CPA, to prepare the financial statements for the construction business which Martin owned and operated in his own name. Franklin is the owner of a building
For each one of the following statements, indicate whether the statement is true of false.a. A CPA firm should adopt adequate policies and procedures on client acceptance, but the only one that is
The following questions relate to client acceptance and communication with a predecessor auditor. Select the best response.a. What is the responsibility of a successor auditor with respect to
The following questions relate to several of the factors that affect the auditor's general planning decisions. Select the best response. a. Which of the following underlies the application of
The following questions relate to the use of analytical procedures in general planning. Select the best response. a. Analytical procedures are 1. Statistical tests of financial information designed
The CPA firm of Gleim & Co. has been approached by the following potential clients:a. Columbus Entertainment Inc., which recently made news in the financial press when its board of directors
Gordon Howe was recently appointed auditor of Watts Ltd., a public company. He had been approached by the audit committee of the board of directors and had communicated with the company's previous
The inspection of the minutes of meetings is an integral part of a CPA's audit of a corporation's financial statements. Discuss the effect each of the following situations would have on specific
The Board of Directors of Lectosonic Corporation declared on June 15, 19X3, a dividend amounting to \($400,000\) payable on July 15 to stockholders of record July 1. An auditor who made an audit of
In an initial engagement the CPA usually applies the auditing procedure of reviewing the client's federal income tax returns for prior years. What are the general purposes or objectives of this
Alpine Ltd. operates a machine shop. It does custom machining, welding, fabricating, and other metalwork for a large number of customers and also manufactures a line of metal utensils for camping and
"As increasing numbers of lawsuits against auditors are demonstrating, the public accountant incurs very real risks as auditor of a corporation. In his or her own interest, the auditor should be more
During the audit of the Vernon Company, the existence of fraud was strongly suspected. Because of the limitations placed upon the engagement, the auditor could not pursue his suspicions. The
You have been engaged to audit the December 31, 19X4 financial statements of the Frio Equipment Corporation, which was formed in 19X0 and sells or leases construction equipment such as bulldozers,
Audit procedures appear to concentrate on detecting overstatement of assets and understatement of liabilities-in other words, overstatement of shareholders' equity. Is an auditor not equally
You are engaged in the audit of the financial statements of Oak Hill Company for the year ended December 31, 19X1. Oak Hill Company sells lumber and building supplies at wholesale and retail; it has
An auditor of a public company is often required to issue an audit report very soon after the company's fiscal year-end in order to meet the client's deadline for publication of the annual report.
You have been assigned by your firm to complete the audit of the 19X8 financial statements of Amon Manufacturing Corporation because the senior accountant and his inexperienced assistant who began
Kyle Boyd is an audit manager with Bell, Botts, and Bone, CPAs. He has been placed in charge of this year's audit of Zerone Plastics Corporation. After assessing his staff needs for the audit, he
CPAs budget time required to perform specific audits. Sometimes budgeted hours are exceeded in order to complete an audit. 1. What factors might cause a CPA to exceed the time budget on an
Following are some ratios that a CPA might compute: Notes receivable to interest earned Notes payable to interest expense Net income to owners' equity Marketable securities to dividend income
At the beginning of the annual audit of Hinse Corporation, a wholesale distributor, Lynna Magnum, the auditor, was given a copy of the company's financial statements as prepared by the company's
In connection with your analytical tests of 19X8 operations, you are presented with a summary of certain data prepared by a staff accountant as on the following page:1. Which of the listed ratios
In auditing the financial statements of a manufacturing company the CPA plans to place increased emphasis upon overall checks of the data under audit. The overall checks include the computations of
During the course of preliminary analytical tests of Caroline Sales Company, a client, a CPA observed the following:1 Which of the expenses would probably not require any further investigation of
In connection with your overall review of operations of Medina Company, you are presented with a summary of certain data prepared by a staff accountant comparing Medina with industry averages as
"We had a fairly good year," said the president of Fannin Ltd. "Sales exceeded $2,000,000 for the first time in our history, though net income didn't keep pace with the sales increase because of
For each one of the following statements indicate whether the statement is true or false.a. The relation of internal control to evidential matter arises from the expected effect of the internal
The following questions relate to the auditor's consideration of the internal control structure. Select the best response. a. The primary purpose of the auditor's consideration of internal control
The following questions relate to basic concepts or terms concerning internal control. Select the best response.a. Which of the following would be least likely to be considered a control objective?1
The following questions relate to possible responsibilities of the independent auditor concerning internal control. Select the best response. a When the auditor assesses control risk at the maximum
As a part of understanding the control environment, an auditor studies the organization structure as it relates to the division of labor and responsibility. The auditor also studies the accounting
Family Finance Company opened four personal loan offices in neighboring cities on January 2, 19X2. Small cash loans are made to borrowers, who repay the principal with interest in monthly
Jones, CPA, who has been engaged to audit the financial statements of Ajax Inc., is about to commence obtaining an understanding of the internal control structure and is aware of the inherent
The Yazoo Company, a client of your firm, has come to you with the following problem: It has three clerical employees who must perform these functions: 1 Maintain general ledger 2 Maintain accounts

Showing 1600 - 1700 of 3387

First
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
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