Journal entry: There are 2 parallel funds, Fund A and Fund B. Together, the funds will make an investment of $100k, with a 65/35 split. The investment will be paid in cash, however, Fund B does not currently have any cash so Fund A will cover Fund B's portion. What journal entry would you record in each fund's books on the day Fund A funds the $100k investment?

Complete the journal entry for both Company A:? Company B:?

1. Which of the following statements is FALSE?

a) ADA is often an iterative process.

b) You must consider the relevance & reliability of the data involved before you perform the ADA.

c) Auditors don't need to plan ADAs as analytics are generally intended to be exploratory in nature.

d) Transforming or cleaning data for an ADA often takes more time than the analysis itself.

2. You are performing a preliminary analytical procedure over sales discounts for your public manufacturing audit client, Keurig Dr Pepper Inc. Which of the following is a reasonable way to test the reliability of the data before you proceed with your analysis? (Select ALL answers that apply).

a) Obtain the data directly from the government

b)Test segregation of duties around the process

c) Determine if the population is complete by verifying continuity of invoice numbering

d) Perform a walkthrough of the process.

Following question doesn't have any right/wrong answer, all of them will be graded on effort!

1. You are in the planning phase of the fiscal year 2021 audit for your client, ABC company. What is an example of an ADA you could perform as part of planning and risk assessment? (List the procedure & explain why I would be effective for your purpose, answer in 3 or more sentences)

2. You are auditing the purchasing process and wish to perform an ADA in order to conduct a test of details over the process. What is an example of an ADA you could perform? (List the procedure and specify which assertion(s) the procedure would relate to and why the procedure would effectively address the assertion(s), answer in 3 or more sentences)

3. You are auditing investment income for a manufacturing firm. You wish to perform a substantive analytical procedure over investment income to determine its reasonableness. What is an example of an ADA you could perform? (List the procedure and specify which assertion(s) the procedure would relate to and why the procedure would effectively address the assertion(s), answer in 3 or more sentences)