9. Imagine your client's AR turnover is up. What is a favorable development that might have...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
9. Imagine your client's AR turnover is up. What is a favorable development that might have caused it? What is an unfavorable development that might have caused it? 10. What are the biggest risks in the acquisition and expenditure process? 11. How is auditing the acquisition and expenditure process qualitatively different from the revenue recognition process? 12. Describe three scenarios to explain credit entries in expense accounts. How would you audit these to determine if they are legitimate? 13. What are some ways to find unrecorded liabilities? 14. Why would classification of expenses, but not a change in the total, be a source of fraud? 15. Describe a potential misstatement if vendor invoices are not matched with receiving documents. How would you find it during an audit? 16. Describe a potential misstatement if purchase orders or receivers are unmatched at year end? How would you find it during an audit? 17. Describe a potential misstatement or fraud scheme involving paying a correct vendor for a real shipment. How would you find it during an audit? 18. How do you determine if assets should be capitalized or not? 19. Which accounts are the most vulnerable in the expenditure business process? Why? 9. Imagine your client's AR turnover is up. What is a favorable development that might have caused it? What is an unfavorable development that might have caused it? 10. What are the biggest risks in the acquisition and expenditure process? 11. How is auditing the acquisition and expenditure process qualitatively different from the revenue recognition process? 12. Describe three scenarios to explain credit entries in expense accounts. How would you audit these to determine if they are legitimate? 13. What are some ways to find unrecorded liabilities? 14. Why would classification of expenses, but not a change in the total, be a source of fraud? 15. Describe a potential misstatement if vendor invoices are not matched with receiving documents. How would you find it during an audit? 16. Describe a potential misstatement if purchase orders or receivers are unmatched at year end? How would you find it during an audit? 17. Describe a potential misstatement or fraud scheme involving paying a correct vendor for a real shipment. How would you find it during an audit? 18. How do you determine if assets should be capitalized or not? 19. Which accounts are the most vulnerable in the expenditure business process? Why?
Expert Answer:
Answer rating: 100% (QA)
9 Higher AR turnover might indicate that the business approach is conservative about extending credit to customers while aggressive in its collection ... View the full answer
Related Book For
Introduction to Accounting An Integrated Approach
ISBN: 978-0078136603
6th edition
Authors: Penne Ainsworth, Dan Deines
Posted Date:
Students also viewed these accounting questions
-
An important control in the acquisition and expenditure process is the accounts payable clerks comparison of the vendor invoices with the purchase orders and the receiving reports for dates,...
-
Describe the activities in the acquisition and expenditure business process. Write journal entries that would be used to record these transactions.
-
Revenue and expense recognition Required a. Describe a revenue recognition event that results in a decrease in liabilities. b. Describe a revenue recognition event that results in an increase in...
-
Some rocks or bricks contain small air pockets in them and have a spongy structure. Assuming the air spaces form columns of an average diameter of 0.006 mm, determine how high water can rise in such...
-
On November 1, 2017, the account balances of Hamm Equipment Repair were as follows. During November, the following summary transactions were completed. Nov. 8 Paid $1,700 for salaries due employees,...
-
a. Create a class named BloodData that includes fields that hold a blood type (the four blood types are O, A, B, and AB) and an Rh factor (the factors are 1 and ). Create a default constructor that...
-
What are high-yield bonds? What is their role in financing firms?
-
A hospital emergency room is open 24 hours a day. Nurses report for duty at 1 A.M., 5 A.M., 9 A.M., 1 P.M., 5 P.M., or 9 P.M., and each works an 8-hour shift. Nurses are paid the same, regardless of...
-
1.Consider two hypothetical companies, A and B. Company A is a top-rated AAA company, whereas company B is a lower-rated BBB company. Assume that company A wants to raise debt and pays a floating...
-
Suppose a firm has fixed costs of $200 per month, and marginal costs are represented by the equation MC =2Q, where Q is output per month (i.e. marginal cost is a positively sloped straight line). The...
-
Input variable, % open 6.1. An experiment has been performed on a fired heater (furnace). The fuel valve was opened an additional increment of 2 percent in a step, giving the resulting temperature...
-
what an enterprise agreement is the principles of enterprise agreements that must be applied in maintaining payroll systems. 2. Identify and briefly describe one (1) other industrial instruments...
-
1. From the HRM perspective, what are the implications of managing labor relations in the Public Sector? 2. Discuss whether unions are still relevant and necessary in today's work environment. What...
-
Ballard corporation's stock returns for years 1 - 4 were 20.00%, 15.00%, 10.00% and 5.00%.Given this information, calculate the standard deviation of the returns.
-
List key ways in which would make the most use of the cost analysis in supporting VectorCal's contract with the federal government.What would happen if the cost analysis related to the VectorCal's...
-
1. Do you feel differently about our criminal justice system after watching the movie? 2. Do you agree with Stevenson's lament that "wealth, not culpability, shapes outcomes" in our justice system?...
-
distributor. Interstate haulers transported flowers in refrigerated trucks. and then regional distributions "spider-webbed" with panel trucks and vans to reach local retailers, Traditional channels...
-
Explain how two samples can have the same mean but different standard deviations. Draw a bar graph that shows the two samples, their means an standard deviations as error bars. T S
-
For the year ended December 31, 2010, Brown, Inc., reported net income of $ 125,000 on the accrual basis of accounting. Using the following information, convert the accrual- based net income to the...
-
Set up a spreadsheet that can be used to estimate cash paid for inventory. Then determine the cash paid for inventory with the following parameters: A. Inventory, beginning...
-
Prepare the balance sheet. Use the following information: Tidrick Manufacturing Company has just completed its first year of operation. It has the following accounts in the general ledger. The...
-
What are decreasing-cost industries?
-
What is productive efficiency?
-
In long-run equilibrium under perfect competition, price does not equal which of the following? a. Long-run marginal cost b. Minimum average total cost c. Average fixed cost d. Marginal revenue e....
Study smarter with the SolutionInn App