C. A. Mellon has been appointed auditor of Mamolite Inc. and its subsidiary companies for the year

Question:

C. A. Mellon has been appointed auditor of Mamolite Inc. and its subsidiary companies for the year ended May 31, 19X4, replacing another CPA who had retired. No information is available from the former auditor. The company's consolidated balance sheet as at May 31, 19X4 contained the following account, amounting to about 8 percent of the net assets:

Investment in unconsolidated subsidiary (see Note), $612,478.

The company acquired 57 percent of the common shares of Bastrop Corporation on July 1, 19X1, for $500,000. The investment is carried at cost plus equity in undistributed earnings since acquisition.

What procedures should the auditor carry out in order to form an opinion on the above item?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Answer rating: 100% (1 review)

Answered By

Aysha Ali

my name is ayesha ali. i have done my matriculation in science topics with a+ . then i got admission in the field of computer science and technology in punjab college, lahore. i have passed my final examination of college with a+ also. after that, i got admission in the biggest university of pakistan which is university of the punjab. i am studying business and information technology in my university. i always stand first in my class. i am very brilliant client. my experts always appreciate my work. my projects are very popular in my university because i always complete my work with extreme devotion. i have a great knowledge about all major science topics. science topics always remain my favorite topics. i am also a home expert. i teach many clients at my home ranging from pre-school level to university level. my clients always show excellent result. i am expert in writing essays, reports, speeches, researches and all type of projects. i also have a vast knowledge about business, marketing, cost accounting and finance. i am also expert in making presentations on powerpoint and microsoft word. if you need any sort of help in any topic, please dont hesitate to consult with me. i will provide you the best work at a very reasonable price. i am quality oriented and i have 5 year experience in the following field. matriculation in science topics; inter in computer science; bachelors in business and information technology _embed src=http://www.clocklink.com/clocks/0018-orange.swf?timezone=usa_albany& width=200 height=200 wmode=transparent type=application/x-shockwave-flash_

4.40+ 11+ Reviews 14+ Question Solved

Related Book For book-img-for-question