16-25&29

16-24. Describe a disclosure checklist whit is its pinpoe? eliting Dyerasions and Complerine the Awlt 65 When the auditors have audited the flisancial stuhesments. whon is their responhlt respect to other infornation tmiot includling reuired supelemental informntion in annual report to shareholders? Does incorrect required suplenwemal information incluled with andited & 16-26. result in a qualitied or advense awdit opinicon? Espiain i included in an LO 167 16-27. In your audit of the financial statements of Wosle Company tor the year ended you find that a material account Teceivable ts de trom company in reorganization Chapter 11 of the Bankrupkey Nct. You also learn that on May 28 several former memine td the bankrupt compuny's management fornmed a new company and that the new issued a note to Wolfe Company thad would pay off the bankrupt customer s able over a four-year period Wha presenmation. if any, should be matk financial statements of Wolfe Company tor the year ended Apeil 30 Explaim wwder company had LO 166 16-28. During an audit engagement, Robert wong CPA. has satisfact t ly completed an exam nat on of accounts payable and other liabilities and now plans to determine whether there are any contingencies arising from litigation, claims, or assessments at are the audit procedures Wong should follow with respect to the existence of loss ingencies arising from litigation, claims, or assessments? Do not discuss reporting rexjuiremeMs 10 16-6,7 16 You are the audit manager in the audit of the financial stakements of Midwest Grain Storngs Inc., a new client. The company's records show that, as of the balance sheet date, approxi- mately 15 million bushels of various grains are in storage foe the Commedity Cred Corpora tion, an agency of the U.S. govemimem. In your review of the audit senior's working papers, you ascertiin the following facts: a. All grain is stored under a Uniform Grain Storage Agreement, which responsible for the quantity and quality of the grain. which bods Midwest h. Losses due to shrinkage, spcilage, and so foeth are inberemt in the storage of grain. Mids- west's losses, however, have been negligible due to the excellence of its shorage facilities c Midwest carries a warehousemian's homd cowering approximaely 20 percem of the value of the stored grain, In the loss comingencies section of the working papers, the seior auditor has made the fol- lowing notation: "1 propose recommending to Midwest's comiroller that the comtingemt liabi ity for grain spoilage and shrinkage be disclosed in a note to the fiancial staements Do you concur with the seniors proposal? Explain LO 16-1, 2, 3 16-30. Margin Industry Cost of Sales Percentage Averages Sales New Course Books 1,086800742,567 Used Course Books Custom Published Books 212,222 19,293 Textbook Rental Sales 102,323 90,323 Course Technology Trade Books Professional Reference 32.6 468,200 318,222 25 22.1 11.2 24.3 31.0 90,600 68,400 22,330 80,432 40,356 15,200 26.5 29.7 Books $2,050,875 $1,446,393 Total Non-Book Sales $823,578 $612,233 $2,874,453 $2,058,626 Total Book Sales 28.3 a. Cakculate the gross margin percentage for cach of State University's produsct tines h. Compure Total Net Sales Stake University's guss margins to indusitry averages. Indicae wny mangins thot appear out of line, in relation to the industry 16-24. Describe a disclosure checklist whit is its pinpoe? eliting Dyerasions and Complerine the Awlt 65 When the auditors have audited the flisancial stuhesments. whon is their responhlt respect to other infornation tmiot includling reuired supelemental informntion in annual report to shareholders? Does incorrect required suplenwemal information incluled with andited & 16-26. result in a qualitied or advense awdit opinicon? Espiain i included in an LO 167 16-27. In your audit of the financial statements of Wosle Company tor the year ended you find that a material account Teceivable ts de trom company in reorganization Chapter 11 of the Bankrupkey Nct. You also learn that on May 28 several former memine td the bankrupt compuny's management fornmed a new company and that the new issued a note to Wolfe Company thad would pay off the bankrupt customer s able over a four-year period Wha presenmation. if any, should be matk financial statements of Wolfe Company tor the year ended Apeil 30 Explaim wwder company had LO 166 16-28. During an audit engagement, Robert wong CPA. has satisfact t ly completed an exam nat on of accounts payable and other liabilities and now plans to determine whether there are any contingencies arising from litigation, claims, or assessments at are the audit procedures Wong should follow with respect to the existence of loss ingencies arising from litigation, claims, or assessments? Do not discuss reporting rexjuiremeMs 10 16-6,7 16 You are the audit manager in the audit of the financial stakements of Midwest Grain Storngs Inc., a new client. The company's records show that, as of the balance sheet date, approxi- mately 15 million bushels of various grains are in storage foe the Commedity Cred Corpora tion, an agency of the U.S. govemimem. In your review of the audit senior's working papers, you ascertiin the following facts: a. All grain is stored under a Uniform Grain Storage Agreement, which responsible for the quantity and quality of the grain. which bods Midwest h. Losses due to shrinkage, spcilage, and so foeth are inberemt in the storage of grain. Mids- west's losses, however, have been negligible due to the excellence of its shorage facilities c Midwest carries a warehousemian's homd cowering approximaely 20 percem of the value of the stored grain, In the loss comingencies section of the working papers, the seior auditor has made the fol- lowing notation: "1 propose recommending to Midwest's comiroller that the comtingemt liabi ity for grain spoilage and shrinkage be disclosed in a note to the fiancial staements Do you concur with the seniors proposal? Explain LO 16-1, 2, 3 16-30. Margin Industry Cost of Sales Percentage Averages Sales New Course Books 1,086800742,567 Used Course Books Custom Published Books 212,222 19,293 Textbook Rental Sales 102,323 90,323 Course Technology Trade Books Professional Reference 32.6 468,200 318,222 25 22.1 11.2 24.3 31.0 90,600 68,400 22,330 80,432 40,356 15,200 26.5 29.7 Books $2,050,875 $1,446,393 Total Non-Book Sales $823,578 $612,233 $2,874,453 $2,058,626 Total Book Sales 28.3 a. Cakculate the gross margin percentage for cach of State University's produsct tines h. Compure Total Net Sales Stake University's guss margins to indusitry averages. Indicae wny mangins thot appear out of line, in relation to the industry