Standards, a financial statement assertion is relevant if it has a reasonable possibility of containing a...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Standards, a financial statement assertion is relevant if it has a "reasonable possibility of containing a misstatement that would cause the financial statements to be materially misstated." For each audit procedure listed below, please select the appropriate financial statement assertion that would be tested by the procedure (i.e., existence or occurrence, completeness, valuation, rights and obligations, presentation and disclosure) and signifi- cant financial statement account: Audit Procedures a. The auditor sends a letter to the bank confirming the amount of cash in the bank account. b. The auditor takes a shipping document and traces it to the sales invoice and sales journal. c. The auditor selects items from the company's inventory list and observes those items in the warehouse. d. The auditor compares prices on a vendor invoice to an approved price list from the vendor. e. The auditor reviews recorded expenses with vendor invoices. f. The auditor determines whether inventory has been pledged as collateral for a loan. g. The auditor reads the minutes from the board of directors meeting to make sure that recorded stock options were approved. h. The auditor reviews new lease agreements to evaluate whether leases have been recorded properly on the balance sheet. t One The Contemporary Auditing Environment 1.70 i. The auditor selects inventory items at a retail store to determine whether any are held on consignment. j. The auditor sends letters to customers to confirm amounts owed to the company. Internet Exercise: Profeccion Standards, a financial statement assertion is relevant if it has a "reasonable possibility of containing a misstatement that would cause the financial statements to be materially misstated." For each audit procedure listed below, please select the appropriate financial statement assertion that would be tested by the procedure (i.e., existence or occurrence, completeness, valuation, rights and obligations, presentation and disclosure) and signifi- cant financial statement account: Audit Procedures a. The auditor sends a letter to the bank confirming the amount of cash in the bank account. b. The auditor takes a shipping document and traces it to the sales invoice and sales journal. c. The auditor selects items from the company's inventory list and observes those items in the warehouse. d. The auditor compares prices on a vendor invoice to an approved price list from the vendor. e. The auditor reviews recorded expenses with vendor invoices. f. The auditor determines whether inventory has been pledged as collateral for a loan. g. The auditor reads the minutes from the board of directors meeting to make sure that recorded stock options were approved. h. The auditor reviews new lease agreements to evaluate whether leases have been recorded properly on the balance sheet. t One The Contemporary Auditing Environment 1.70 i. The auditor selects inventory items at a retail store to determine whether any are held on consignment. j. The auditor sends letters to customers to confirm amounts owed to the company. Internet Exercise: Profeccion
Expert Answer:
Related Book For
Auditing Cases An Interactive Learning Approach
ISBN: 978-0132423502
4th Edition
Authors: Steven M Glover, Douglas F Prawitt
Posted Date:
Students also viewed these accounting questions
-
The following (1 through 17) are the balance- related, transaction-related, and presentation- and disclosure- related audit objectives. REQUIRED Identify the specific audit objective (1-17) that each...
-
Section 404 of the Sarbanes- OxleyAct of2002 requires public companies to report on the effectiveness of their internal control over financial reporting. Section 404 also requires companies to hire...
-
A. Discuss the following conceptual model/framework of Orem's Self-Care Theory CONDITIONING FACTORS (12 MARKS) Orem's Self-Care Theory Conceptual Framework SELF-CARE AGENCY SELF-CARE DEFICIT NURSING...
-
An arrangement of two pulleys, as shown in the figure, is used to lift a 48.0-kg mass a distance of 4.00 m above the starting point. Assume the pulleys and rope are ideal and that all rope sections...
-
Exercises 6163 will help you prepare for the material covered in the first section of the next chapter. Use point plotting to graph f(x) = 2 x . Begin by setting up a partial table of coordinates,...
-
Choose a country from three of the regions presented in Table 6.7. Using the Internet, collect as much information as you believe is needed to identify the potential for market segments based on age,...
-
Essence of Esther Cosmetics Company is planning a one- month campaign for September to promote sales of one of its two cosmetics products. A total of $ 150,000 has been budgeted for advertising,...
-
Discuss in detail some of the most common mistakes made when administering a database? Who is responsible for completing tasks needed to administer the database? What could have been done differently...
-
Andrea sold H7 boxes of oranges for a fundraiser. Malachi sold 12 fewer boxes than Andrea. How many more boxes of oranges does Malachi need to sell to have sold 200 boxes?
-
The Denavit-Hartenberg transformation matrices below describe the successive joints from 1 to 6 for a particular robot manipulator with end-effector. Ca -Sa 0 0.5C 0 1 0 0 -S 0 CB 0 Sa Ca 0 0.5Sa 1 0...
-
What are the economic factors influencing abortion decision making? Please evaluate the example in depth and come up with more economic factors. You should have at least four paragraphs. For example:...
-
The airline company Cloud 2 operates two aircrafts: the X1, which carries up to 40 passengers and 30 tons of cargo, and costs $500 per trip. the X2, which carries up to 60 passengers and 15 tons of...
-
Sylvester Graham(1794-1851) was a Presbyterian minister who supported various reforms that have to do with the body. He fits in with the numerous antebellum reforms that were sometimes religious and...
-
After analysing several companies, you decided to invest in the shares of the following companies (expected returns are in the parentheses): $40,000 in Firm A (10%), $20,000 in Firm B (7%), and...
-
Evaluate the internal processes or strategies within an organization in which you are involved, such as your workplace, school, church, or community group, in order to identify a problem that...
-
Write electron configurations for the following ions, and determine which have noble-gas configurations: (a) Cd2+ (b) p3- (c) Zr4+ (d) Ru3+ (e) As3- (f) Ag+
-
In the past five years, there have been significant innovations in technology such as smartphones and tablets. Technology companies rely on intellectual property (IP) rights, such as patents,...
-
Respondents Varsity Brands, Inc., Varsity Spirit Corporation, and Varsity Spirit Fashions & Supplies, Inc., design, make, and sell cheerleading uniforms. Respondents have obtained or acquired more...
-
Mr. Tam is the front man for the Asian American dance-rock band The Slants. Mr. Tam named his band The Slants to reclaim and take ownership of Asian stereotypes. The band draws inspiration for its...
Study smarter with the SolutionInn App