Questions and Answers of Auditing The Art And Science Of Assurance

Consider a 20-MW cogeneration power plant in a campus complex. An energy balance analysis indicates the following energy fluxes for the power plant:It is estimated that all the condenser losses but
Same as Problem 9.1. Assuming that the electric cost varies from $0.05/kWh to $0.15/kWh (including demand charge), determine the variation of the cogeneration system payback period versus electricity
A 300-ton chiller with 1.2 kW/ton average seasonal efficiency is operated 3,500 hours per year with an average load factor of 70 percent. This chiller needs to be replaced by either chiller A or
A building with a peak load of 2,000 tons and equivalent full load hours of 2,500 hr/year, determine the most economical option to deliver cooling needs between the two design alternatives.Use LCC
Same as Problem 9.1. If the life of the cogeneration system is 40 years, provide the optimal size of the cogeneration system for the hospital when the average interest rate is 8 percent and the
Consider the cooling load profile for an office building shown in Figure 9.17 . The cooling is provided by a chiller having a capacity of 1,000 kW and with an average seasonal COP of 3.5 . The
Consider a 60-kW cogeneration system that produces electricity and hot water with the following efficiencies:(a) 26 percent for the electricity generation, and(b) 83 percent for the combined heat and
Consider a 5-kW rooftop PV system that can be installed at a cost of $3000/kW and maintained at a cost of $0.10/kWh. The building is connected to the grid, which provides electricity at $0.10/kWh.
Consider a building with 250 tons of peak cooling load. On a peak-cooling day, the cooling load occurs for 8 hours with a load factor of 75 percent. During the entire year, there are 1,000 equivalent
A 400-kW cogeneration system has an overall efficiency of 86 percent. The cogeneration system produces hot water at a thermal efficiency of 24 percent. Determine the cost-effectiveness of installing
Consider a 50-kW rooftop PV system installed at a cost of $3500/kW. The PV system operates with a capacity factor of 22%, $0.005/kWh of maintenance costs, and 1% downtime during a typical year. For a
Consider a 20-kW rooftop PV system installed at a cost of $2500/kW. The PV system operates with a capacity factor of 20%, maintenance cost of $0.01/kWh, and downtime of 2% during a typical year. For
A chiller water heating coil has a set-point of 13°C, with a throttling range of 3°C. The cooling capacity of the coil varies from 0 kW to 20 kW. Assuming that a proportional controller is used to
Determine the reduction in the annual energy costs due to staggered duty cycling of three identical fan motors [each rated at 30 kW (40 hp)]. The motor manufacturer specifies 20 minutes on and 10
A centrifugal chiller (having a capacity of 500 kW and an average seasonal COP of 4.0) operates with a leaving chilled water temperature of 4.5°C. Determine the cost savings incurred by installing
A hot water heating coil has a set-point of 35°C with a throttling range of 10°C. The heat output of the coil varies from 0 kW to 50 kW. Assuming that a proportional controller is used to maintain
Consider a school building with 400-tons peak cooling load. On the peak-cooling day, the cooling load occurs for 8 hours with a load factor of 60 percent. During the entire year, there are 1,500
List and comment on the advantages and disadvantages of both full and partial storage systems.
A hot water heating coil has a set-point of 110°F with a throttling range of 15°F. The heat output of the coil varies from 0 kW to 80 kW. Assuming that a proportional controller is used to maintain
Determine the reduction in the annual energy costs due to staggered duty cycling of six identical fan motors, each rated at 20 hp and has 4 poles. The motor manufacturer specifies 20 minutes on and
Repeat Problem 10.3 but with motors with(a) 2 poles and(b) 6 poles. Comment on the impact of the number of poles.Problem 10.3Determine the reduction in the annual energy costs due to staggered duty
Determine the annual electricity savings when the condensing temperature is reduced on average by 5°C by an automatic controller for a 500-ton reciprocating chiller with a seasonal COP of 3.8.
A 300-ton screw chiller with an efficiency of 0.70 kW/ton operates with a leaving chilled water temperature of 4.5°C. Determine the cost savings incurred by installing an automatic controller that
A wood frame house has an overall building load coefficient (BLC) of 350 W/°C and roof insulated with RSI-5 with an exposed area of 200 m2. Estimate the potential annual electricity use and cost
Assess the cost-effectiveness of a roof retrofit using a SIS for a Golden, CO, house that has an overall BLC of 400 W/°C and roof insulated with RSI-5.9 with an exposed area of 180 m2. Estimate the
A 10-m × 15-m ranch house is located in Golden, CO, with an overall BLC of 0.3 kW/°C. The walls have a height of 3 m and the window-to-wall ratio (WWR) is 20 percent. Determine the breakeven
A house located is Chicago, IL, is heated with a natural gas-fired furnace with an efficiency of 85 percent. The house has a BLC of 600 Btu/°F·hr with WWR of 30 percent. Using the data listed in
Determine the breakeven cost for SIS-roof retrofit applied to a house located in Seattle, WA. The house has BLC of 550 Btu/°F·hr and a roof area of 1,500 ft2. The SIS-roof is operated using
For a 12-m × 20-m one-story house located in San Francisco, CA, determine the cost-effectiveness of exterior walls retrofit to have SIS. The house has a BLC of 400 W/°C, wall height of 3.5 m, and
An office building with a lighting density of 7.5 W/m2 is retrofitted with LED-integrated controllers at a cost of $30/m2. The lighting system is operated 4,000 hours per year. If the electricity
a. Estimate the annual energy cost of DHW heating for an office building occupied by 1,000 people. Each person uses on average 3 gallons per day of hot water. The water temperature at the bathroom
The installation of two smart thermostats is considered for two-story detached home in Denver, CO, at a total cost of $550. The home has an overall BLC of 400 W/°C. Estimate the SPP for the
For a house located is Phoenix, AZ, cooled with an AC with COP of 4.0, determine the cost-effectiveness of retrofitting windows with SISs operated with two-step controls at a cost of $6,000. The
For a 15-m × 20-m one-story house located in San Francisco, CA, determine the cost-effectiveness of retrofit of the windows with SISs. The house has a BLC of 500 W/°C, wall height of 3.50 m, and
Assess the cost-effectiveness of retrofitting an office building with LED-integrated controls at a cost of 35/m2. Before the retrofit, the building has lighting density of 9.5 W/m2 for a total floor
For the same retrofit defined in Problem 11.7, (i) evaluate the cost-effectiveness of LED-integrated controls for various lifetimes ranging from 5 years to 30 years (use a 5-year increments), (ii)
Determine the SPP of installing four smart thermostats in a house in Chicago, IL, at a total cost of $950. The house has an overall BLC of 700 Btu/°F·hr. The house is heated by a furnace with an
Determine the cost-effectiveness of SPP for installing three smart thermostats in a house in Phoenix, AZ, at a total cost of $700. The house has an overall BLC of 500 Btu/°F·hr and is cooled with
Determine the annual energy, water, and cost savings associated with replacing an existing showerhead (having a water flow rate of 2.5 gpm) with a low-flow showerhead (1.6 gpm). An electric water
An office building has 200 occupants, each of whom uses 3.5 gallons of hot water per day for 250 days each year. The temperature of the water as it enters the heater is 55°F (an annual average). The
Estimate the annual cost savings incurred by replacing an existing clothes washer (having 2.65 ft3 tub volume) with a water/energy-efficient appliance that has an EF of 2.50 ft3/kWh and uses 42
Determine the best insulation thickness, using simple payback period analysis, to insulate a hot water storage tank with a capacity of 500 gallons. The cost of fiberglass insulation is as follows:
Based on the annual GDP and TPES data reported for two countries A and B, as noted in Table P-14.1.a. Calculate the two countries’ EPs and plot the trends on the same graph.b. Assess which country
Determine the annual evaporative losses from a 3,500-ft2 indoor swimming pool with indoor conditions of 78°F and 60 percent relative humidity (RH). The water temperature is kept at 85°F throughout
Using monthly calculations based on weather conditions of Denver, Colorado, determine the annual evaporative losses from a 4,000-ft2 outdoor swimming pool with water temperature kept at 80°F
Obtain the total annual energy consumption specific to the residential building stock for a town or a city and develop a housing stock model with a limited number of representative energy models
Use the developed building stock model in Problem 13.1 to perform a large-scale analysis for various retrofit measures specific to each representative housing unit in the selected town or a city. You
For the same 500-m2 retail store considered in Example 14.1 , the baseline case in this example has no air-conditioning system with an EUI of 110 kWh/m2/year and annual sales of US$594/m2. Perform a
Assess the capital costs required to implement fully the large-scale retrofit for the housing stock in the selected town or city of Problem 13.2. If a limited level of capital funds is available,
Consider a 500-m2 retail store with EUI of 172 kWh/m2/year and an annual sales of US$600/m2. Perform LCC and EP analyses to assess the effectiveness of investing in more energy-efficient
Consider the macroeconomic data for a country listed in the Table P-14.2, including annual VA for the building sector and all the sectors (i.e., GDP for the entire economy) as well as associated TFC
Collect the annual VA and final energy consumption specific to the various economy sectors during the last ten years for a country of your choice and evaluate the annual sectoral EP. In particular,
A medium office building has 800 luminaires equipped with four 40-W lamps and standard magnetic ballasts. The manager of the building agreed with an energy service company to replace these luminaires
An energy service company agreed to convert all 12 CV AHUs within a commercial building into VAV systems by installing variable frequency drives (VFDs) and VAV terminal boxes. To verify fan energy
On February 17, 2021, a public accountant completed the examination of the financial statements for Buckheizer Corporation for the year ended December 31, 2020. The audit is satisfactory in all
Below are three audit procedures performed and the assertion that the auditor was asked to evaluate.REQUIREDa) For each procedure performed, explain what specific type of procedure it is.b) For each
As part of the analytical procedures of Mahogany Products Inc., you perform calculations of the following ratios.REQUIREDFor each of the preceding ratios:a. State whether there is a need to
List the three major evidence decisions that must be made on every audit.
Describe what is meant by “an audit program for accounts receivable.” What three things should be included in an audit program?
The following audit procedures were performed in the audit of inventory. The audit procedures assume the auditor has obtained the inventory count records that list the client’s inventory. The
The use of data analytics can cause the auditor to apply an inappropriate level of professional skepticism. Explain why.
Lesley Stopps, a public accountant, is the auditor for Great Western Lumber Company Ltd., a wholesale wood milling company. Lesley calculated the gross margin for three product lines and compared it
Ann Donnelly is a senior audit manager in a Toronto office of a public accounting firm. Her prospects for promotion to partner are excellent if she continues to perform at the same high-quality level
Below is a conversation between Fran and you, Audit Junior:FM: Hi Audit Junior.AJ: Hi Fran, how is it going?FM: Great, come over so I can show you something.AJ: Sure.FM: Mitch wrote these two audit
Elias Tech (ET) is a private company founded by Sarah House and Rosa Perks. Sara and Rosa each own a 40 percent interest in the company, with the remaining 20 percent owned by a venture capitalist
Recently, the global spread of the coronavirus (COVID 19) has created significant decline in demand for several products and uncertainty of the availability of materials in the supply chain, as well
What is meant by planning materiality? Identify the most important factors affecting its development.
The minutes of the board of directors of the Tetonic Metals Company for the year ended December 31, 2020, were provided to you.MEETING OF MARCH 5, 2020The meeting of the board of directors of Tetonic
You are auditing an online food delivery company and noted that the accountant wrongly charged an additional 1 percent to the commission fee on all deliveries made on August 1.a. Is this error
Below is a conversation between Mitch and AJ, the audit junior.AJ: Hi Mitch, how is it going?MB: Good, I was relaxing until you came along.AJ: Fran asked me to do some analysis of Hillsburg’s
Charles Ngu is assessing the management and governance structure of Major Appliance Manufacturing Co. Describe three types of evidence that Charles would gather, and state the relevance of the
Chocolates From Heaven Inc. (CFHI) produces small batch artisanal chocolate. It is a private company owned by two equal shareholders, David Chang and Sharjeel Ahmed. They started CHFI in 1996 and
Joanne Whitehead is planning the audit of a newly obtained client, Henderson Energy Corporation, for the year ended December 31, 2020. Henderson Energy is regulated by the provincial utility
You are the audit senior responsible for preliminary planning of E2BHi Inc. for the year ended December 31, 2020. E2BHi Inc., located in Mississauga Ontario, manufactures and distributes edible
Pamela Albright is the manager of the audit of Stanton Enterprises, a public company that manufactures formed steel subassemblies for other manufacturers. Albright is planning the 2018 audit and is
Airship Solutions is an Australian company that provides drone photography, aerial photography, videography, and advertising, with seven locations around the world. Its blimps, which are filled with
Bohrer, CPA (Chartered Professional Accountant), is considering the following factors in assessing audit risk at the financial statement level in planning the audit of Waste Remediation Services
As part of the engagement team for the audit of JA Tire Manufacturing for the year ended December 31, 2019, you are responsible for auditing the revenue cycle. Visit the textbook website My
Below is a conversation between the two junior auditors assigned to the Hillsburg audit, Mitch and AJ.MB: Hey, pssst . . . .AJ: What going on Mitch?MB: Come here, closer.AJ: Mitch, why are you
For each of the following descriptions of internal controls, select which of the five COSO internal control components 1—Control environment 2—Risk assessment3—
Compare management’s responsibilities for internal control to those of the auditor.
What is meant by the “control environment”?
Explain what “verifications and performance reviews” are and give five specific examples.
Refer to Question 8-4 for background on the company. Below is an excerpt of the preliminary financial statements and some excerpts from the audit working papers prepared by Shelly, the audit
What kinds of checks and balances should be in place when an organization implements program changes?
At the control environment level, what should organizations do to address cyber risk?
While the Internet of Things (IoT) brings many benefits to organizations, it can expose them to several technological risks. Provide two examples of such risks and what type of controls can address
This case has two parts:Part I focuses on controls in the control environment and monitoring components (Chapter 8)Part II focuses on controls in the control activities of a sales process (Chapter
Mitch and AJ just found out that Hillsburg’s ONHAND system was hit by a cyberattack. (For details on the cyberattack, refer to the Appendix at the end of the book and read the transcript of the
Explain what is the purpose of the test data approach.
Below Is a conversation between Fran and AJ regarding testing controls:Fran: AJ, did you have a chance to read some of the working papers in Hillsburg’s last-year’s audit file?AJ: Yes, I did
What are the four types of audit procedures auditors use to determine whether financial statements are fairly stated? Identify which procedures are performed to assess control risk and which
What is the purpose of risk assessment procedures, and how are they related to or different from the four other types of audit tests?
Refer to Auditing in Action 10-2.Data from in Auditing Action 10-2The following is an excerpt from KPMG’s 2014 Audit Plan, which it presented to the audit committee of the Regional Municipality of
Ontario Fun Space (OFS) is a privately owned entertainment complex consisting of a theme park, concert venue, and marina in Lion’s Head, Ontario. OFS was founded in 1988 by a group of 10 local
For more information about a cyberattack on Hillsburg’s ONHAND system and other background information please refer to the Appendix and Question 8-35. Below is a conversation between the audit
Distinguish between a test of controls and tests of details. Give two examples of each.
For each of the seven specific types of audit procedures—inspection, observation, external confirmation, recalculation, reperformance, analytical procedures, and inquiries of the client (discussed
Assume that the client’s internal controls over the recording and classifying of fixed-asset additions are considered deficient because the individual responsible for recording new acquisitions has
Explain how Audit Data Analytics can reduce sampling risk.

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