New Semester
Started
Get
50% OFF
Study Help!
--h --m --s
Claim Now
Question Answers
Textbooks
Find textbooks, questions and answers
Oops, something went wrong!
Change your search query and then try again
S
Books
FREE
Study Help
Expert Questions
Accounting
General Management
Mathematics
Finance
Organizational Behaviour
Law
Physics
Operating System
Management Leadership
Sociology
Programming
Marketing
Database
Computer Network
Economics
Textbooks Solutions
Accounting
Managerial Accounting
Management Leadership
Cost Accounting
Statistics
Business Law
Corporate Finance
Finance
Economics
Auditing
Tutors
Online Tutors
Find a Tutor
Hire a Tutor
Become a Tutor
AI Tutor
AI Study Planner
NEW
Sell Books
Search
Search
Sign In
Register
study help
business
auditing
Auditing and Assurance Services Understanding the Integrated Audit 1st edition Karen L. Hooks - Solutions
Harris Fell, CPA and member of the AICPA, was engaged to audit the financial statements of Wilson Corporation. Fell had half-completed the audit when he had a dispute with the management of Wilson Corporation and was discharged. Hal Compton, CPA, was promptly engaged to replace Fell. Wilson
Distinguish between common law and statutory law. Discuss.
State briefly a major distinction between the Securities Act of 1933 and the Securities Exchange Act of 1934 with respect to the type of transactions regulated.
Comment on the following statement: while engagement letters are useful for audit engagements, they are not necessary for compilation and review engagements.
Give at least four examples of specialists whose findings might provide a appropriate evidence for the independent auditors.
The cost of an audit might be significantly reduced if the auditors relied upon a representation letter from the client instead of observing the physical counting of inventory. Would this use of representation letter be an acceptable means of reducing the cost of an audit?
List the factors that make up an organization’s control environment.
Name three factors you consider of greatest importance in protecting a business against losses through embezzlement
Under what circumstances are tests of controls efficient audit procedures?
How is the auditors’ understanding of the client’s internal control documented in the audit working papers?
Identify the five components of an organization’s internal control.
What is meant by a local area network?
Distinguish between user control activities and manual application control activities.
Explain briefly what is meant by an “online real-time system.”
What is meant by the term telecommunications?
Explain briefly what is meant by a distributed data processing system.
Which technique results in a smaller sample size, sampling with or without replacement?
An auditor is sampling with replacement and, by chance, a particular account has been selected twice. Should it be included two times in the sample?
When using attributes sampling, the auditors must estimate the expected population deviation rate. What sources are used to make this estimate?
What is a dual-purpose test?
When performing a dual-purpose test, how does the auditor arrive at the required sample?
If a sample of 100 items indicates a deviation rate of 3 percent, should the auditors conclude that the entire population also has approximately a 3 percent deviation rate?
The mean of the audited values in a sample is $20. The accounts in that sample have a mean book value of $21, and the entire population of 10,000 accounts has an average book value of $19. Using mean-per-unit sampling, calculate the estimated total audited value of the account.
List the factors affecting sample size in a PPS sample.
What information do CPAs requests from a financial institution on the standard confirmation form?
How can the auditors corroborate compensating balance arrangements?
How can the auditors determine that all dividends applicable to marketable securities owned by the client have been received and recorded?
Among the departments of J-R Company are a purchasing department, receiving department. accounting department, and finance department. If you were preparing a flowchart of a voucher system to be installed by the company, in which department would you show? a. The assembling of the purchase order,
An inexperienced clerk assigned to the preparation of sales invoices in a manufacturing company became confused as to the nature of certain articles being shipped, with the result that the prices used on the invoices were far less than called for in the company's price lists. What controls could be
Comment on the following:”any voided prenumbered shipping documents should be properly canceled and disposed of to eliminate any possibility of improper shipment of goods”.
What auditing procedures, if any, are necessary for notes receivable but not required for accounts receivable?
“A well prepared balance sheet usually includes a statement that the inventories are valued at cost: Evaluate this question.
Does a failure to record the retirement of machinery affect net income? Explain.
What is a principal objective of the auditors in analyzing a Maintenance and Repairs expense account?
Do the auditors question the service lives adopted by the client for plant assets, or do they accept the service lives without investigation? Explain
Outline a method by which the auditors may test the propriety of cash discounts taken on accounts payable.
The auditors usually find in the client’s possession documentary evidence, such as invoices, supporting both accounts receivable and accounts payable. Is there any difference in the quality of such evidence for accounts receivable and for accounts payable? Explain.
Describe briefly an internal control activity that would prevent a paid disbursement voucher from being presented for payment a second time.
List the major responsibilities of an accounts payable department.
In achieving adequate internal control over operations of the accounts payable department, a company should establish procedures that will ensure that extensions and footings are proved on all invoices and that the propriety of prices is reviewed. What is the most effective means of assuring
What internal control activity would you recommend to call attention to a failure to pay invoices within the discount period?
Vendors’ statements and accounts payable confirmations are both forms of documentary evidence created outside the client organization and useful in audit work on accounts payable. Which of these two represents higher-quality evidence? Why?
What documentary evidence created outside the client’s organization is particularly important to the auditors in verifying accrued property taxes?
What information should be requested by the auditors from the trustee responsible for an issue of debentures payable?
Is the confirmation of notes payable usually correlated with any other specific phase of the audit? Explain.
What is the principal reason for testing the reasonableness of the Interest Expense account in conjunction with the verification of notes payable?
Audit programs for examination of accounts receivable and notes receivable often include investigation of selected transactions occurring after the balance sheet date as well as transactions occurring during the year under audit. Are the auditors concerned with notes payable transactions
What do you consider to be the most important control a corporation can adopt with respect to capital stock transactions?
What is the primary responsibility of an independent registrar with respect to capital stock?
For which expense accounts should the auditors obtain or prepare analyses to be used in preparation of the client’s income tax returns?
What division of duties among independent departments is desirable to achieve maximum internal control over payroll?
What are subsequent events?
Does incorrect required supplemental information included with audited financial statements result in a qualified or adverse audit opinion? Explain.
Describe the alterations from the standard report when a scope limitation has occurred and the auditors have issued a qualified opinion.
Identify the sections of the standard audit report for a nonpublic company.
What is the function of notes to financial statements?
Comment on whether you agree with the following and why: GAAP and GAAS represent two frequently used financial reporting frameworks.
Howard Green, a partner with Cary, Loeb, & Co., and his audit team have completed the audit of Baker Manufacturing. Determine the proper date of the audit report.• December 31, 20X0: Baker’s year-end.• February 15, 20X1: Green completed audit procedures performed at Baker’s location.•
What are the two circumstances that result in modified opinions?
Comment on the following: “If the financial statements contain an immaterial departure from generally accepted accounting principles, the auditors issue a qualified opinion; if the financial statements contain a material departure from GAAP, the auditors issue an adverse opinion.”
Can the client change a set of financial statements to receive an unmodified opinion instead of an opinion qualified as to the adequacy of disclosure? Explain.
Assume that CPAs are attesting to comparative financial statements. Can the CPAs express differing opinions on the sets of financial statements of two successive years?
Provide an example of a situation in which the performance of tests of controls for the internal control audit might affect the performance of substantive procedures in a financial statement audit.
Distinguish between entity-level controls and controls designed to achieve specific control objectives.
The auditors have completed an examination of internal control and are preparing to issue a report. Does the opinion paragraph on the client’s internal control conclude on internal control or management’s assessment of internal control?
What type of report on internal control is likely to be issued when management imposes a scope limitation?
Which types of deficiencies must be communicated to the audit committee?
Wilson has prepared personal financial statements in which her assets are valued at her historical cost, less appropriate depreciation. Is this presentation in conformity with generally accepted accounting principles? Can a public accounting firm audit these statements and issue a standard
What is the purpose of a comfort letter? Discuss.
What form of opinion will the auditors normally issue with respect to summary financial statements that the client has developed from the audited financial statements?
Comment on the correctness of the following statement: Since all attest services are assurance services, all assurance services are also attest services.
Is a written report from the accountant involved for all attestation and other assurance services? Explain.
Distinguish between forms of attestation engagements that result in reports that are designed for "general use" and those that result in reports that are designed for "restricted use."
Comment on the accuracy of the following: A client's uncorrected material departure from the suitable criteria identified during an examination conducted under the attest standards is treated as a departure from GAAP in a financial statement audit-either a qualified or adverse opinion is
Describe the two types of compliance services that may be performed under AT section 601.
The attestation standards provide guidance on agreed-upon procedures, review, and examination engagements. Which of these types of engagements are available for WebTrust and SysTrust?
Indicate whether a CPA may provide each of the following services, and whether independence is required, by placing a check in the appropriate box.
Should the internal auditors generally disclose their findings to operating personnel of the department involved before transmitting the report to top management? Explain.
Describe the two types of agreed-upon procedures engagements that CPAs may perform relating to compliance with laws and regulations.
Explain why tests of compliance with laws and regulations are considered to be substantive tests.
Identify the knowledge and skills that are necessary to the performance of modern internal auditing.
How do audits serve a “preventive” purpose?
Why does having audited financial statements bring down a company’s cost of capital?
Over the course of Young & Young’s audit of SQL Group, a publicly traded company, Young & Young concluded that SQL’s financial statements presented fairly according to U.S. GAAP, but its internal controls over financial reporting were not effective as of the audit date. Management’s
What is the purpose of an audit? Discuss.
What types of companies must have an integrated audit?
What is a clean or an unqualified opinion?
Why is auditing described as a systematic process?
Who is responsible for the report on internal control over financial reporting? Who is responsible for the financial statements? The audit report? How might these documents change as a result of the audit?
What is the Sarbanes-Oxley Act?
What is management’s assertion that is assessed in a financial statement audit? In an audit of internal control over financial reporting (ICFR)?
What entity issues the standards governing the integrated audit of a public company?
What do the complex transactions that occur in many businesses today have to do with the value of an audit?
What is an assurance engagement?
What are examples of non-assurance and consulting services?
In a CPA firm, the work of each person is reviewed by his or her supervisor. What is the purpose of having the work of each person reviewed by a professional with more experience?
How does the CPA Vision Project intend to enhance value to the CPA profession?
Why does the auditor have to issue two opinions, one on internal control and one on the financial statements?
What is the term for an engagement to audit both the financial statements and ICFR?
What entity sets standards for audits of U.S. public companies? Nonpublic companies?
Showing 7400 - 7500
of 10291
First
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
Last
Step by Step Answers
Get 50% OFF
Claim Now
