Question: Adjusting entries have been utilized to improperly manage earnings. Required a. Identify two types of routine adjusting entries and two types of non-routine adjusting entries

Adjusting entries have been utilized to improperly manage earnings.

Required
a. Identify two types of "routine" adjusting entries and two types of non-routine adjusting entries that might be made either monthly or quarterly.
b. Explain the types of controls that might be expected to be associated with routine adjusting entries. Illustrate with the types of entries you have identified in (a).
c. For the adjusting entries, identify how the auditor would gather evidence on the one or two most important controls built into the process.
d. Assume the non-routine adjusting entries can be material for the company. Identify two or three important controls that you would recommend be implemented for the non-routine adjusting entries.

Step by Step Solution

★★★★★

3.33 Rating (168 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a Two types of routine adjusting entries the auditor would expect to see Monthly depreciation charges Amortization of interest premium or discount Mon... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

222-B-A-A-B-R (326).docx

120 KBs Word File

Students Have Also Explored These Related Auditing Questions!

Identify two types of substantive analytical procedures an auditor may perform in testing purchases.

Identify two types of standards used in ratio analysis. Explain why it is desirable to use both types.

Identify two types of value streams and explain how they differ.

(1pt) Accrual Based Accounting: Prepaid expenses Depreciation of Fixed Assets. Moving On, Inc. purchases a new moving truck (e.g. equipment) for $45,780 in cash on August 1 st , 2017. At the time of...

2. Describe the failings of EY with respect to conducting an audit in accordance with GAAS. Include in your discussion any violations of the AICPA Code of Professional Conduct. 3. Evaluate the...

Guidelines The PowerPoint presentation must be at least 20 slides in length; 10-12 point font; double-spaced; andinclude a cover page, introduction, body, summary or conclusion, and works cited...

Major Case 4 (for use with Chapters 17) Cendant Corporation1 The Merger of HFS and CUC HFS Incorporated (HFS) was principally a controller of franchise brand names in the hotel, real estate...

Answer the questions 14 in terms of the concepts as below: ( I have to put the answers in the power point presentation which must be at least 20 slides in length, 10-12 oint font; double spaced and...

Objectives This presentation addresses material covered in all weeks and all TCOs. Instead of a written final exam, you will work to read, analyze, and evaluate Major Case 4, Cendant Corporation,...

Chapter 1 Introduction to Accounting NAME ___________________________________________________ DATE _______________________________ 1. Which of the following events would be recorded as an accounting...

Suppose consumers in the economy described in problem wished to consume X and Y in equal amounts. a. How much of each good should be produced to meet this goal? Show this production point on a graph...

Which cable is known as the RG58 cable?

Select three countries in South America. Prepare a one-page summary for each to reveal their attractiveness for foreign direct investment. For each of the three countries, prepare a one-page summary...

Consider the significant year-end transactions consummated by BFA. Do you believe that the accounting for these transactions violated the conservatism constraint? Why or why not? Please be specific.

Consult Paragraph 14 of PCAOB Auditing Standard No. 5. Do you believe that BFA had established an effective system of internal control over financial reporting related to its significant year end...

Consult Paragraphs #1215 of PCAOB Auditing Standard No. 13. Consider the sale of the Santa Fe Trails Ranch II stock by Foundation Investments to Friend. Do you believe that the auditor should have...

Question 28 Based on the next table, calculate the GBP/AUD quote. EUR/USD 1.15276 USD/JPY 105.632 GBP/USD 1.31410 USD/CHF 0.95477 AUD/USD 10.77309 USD/CAD 1.25159 INZD/USD 0.65184 Report 5 digits...

Programming Language : Java Overview In this challenge, you will create a class that contains a recursive method named power and a main method to execute it. The power method evaluates integer...

Researchers tested the amount of arsenic in brown jasmine rice versus white jasmine rice. They believed the mean difference (brown - white) was over 60ppb. Random, independent samples of 9 brown and...