As part of a team of auditors assigned to audit Dandelion Limited, a furniture retailer, for...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
As part of a team of auditors assigned to audit Dandelion Limited, a furniture retailer, for year ended 2020 December 31, you have been asked to verify trade creditors $1 200 000 and accruals $400 000. The company buys items on credit from small furniture manufacturers. A. B. State THREE (3) audit procedures that you would use to verify trade creditors and THREE (3) to verify accruals. Explain the importance of a bank letter as part of the procedure of obtaining confirmations from a bank. As part of a team of auditors assigned to audit Dandelion Limited, a furniture retailer, for year ended 2020 December 31, you have been asked to verify trade creditors $1 200 000 and accruals $400 000. The company buys items on credit from small furniture manufacturers. A. B. State THREE (3) audit procedures that you would use to verify trade creditors and THREE (3) to verify accruals. Explain the importance of a bank letter as part of the procedure of obtaining confirmations from a bank.
Expert Answer:
Answer rating: 100% (QA)
A Audit procedures to verify trade creditors 1 Confirmation Send confirmation requests to the companys major suppliers specifically the small furniture manufacturers requesting them to confirm the out... View the full answer
Related Book For
Auditing The Art And Science Of Assurance Engagements
ISBN: 9780136692089
15th Canadian Edition
Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Chris E. Hogan, Joanne C. Jones
Posted Date:
Students also viewed these accounting questions
-
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
-
Case Study: Quick Fix Dental Practice Technology requirements Application must be built using Visual Studio 2019 or Visual Studio 2017, professional or enterprise. The community edition is not...
-
What operational changes would you recommend to Wally to improve performance? Wally Meyer deftly balanced his office keys and a large printout of forecasting data as he wheeled his mountain bike...
-
To save for her newborn son's college education, Lea Wilson will invest $1,000 at the beginning of each year for the next 18 years. The interest rate is 12 percent. What is the future value? 1)...
-
Why might a company invest in the securities of another company?
-
The Chennai motors Ltd. issued 4,00,000 equity shares of Rs.10 each. The whole issue was underwritten by Malar. Applications for 3,20,000 shares were received in all. Determine the liability of the...
-
A construction contract has the following language: It is the responsibility of the contractor to inspect and become familiar with the Project and to acquaint itself thoroughly with all conditions...
-
Interstate Manufacturing is considering either replacing one of its old machines with a new machine or having the old machine overhauled. Information about the two alternatives follows. Management...
-
What does SQL stand for? What is SQL? What is SQL used for? What is PL/SQL? What is NoSQL? What is Data Definition Language (DDL)? What is Data Manipulation Language (DML)? What is Data Control...
-
On January 1, 2024, Marigold Company purchased 8,568 shares of Swifty Company's common stock for $123,000. Immediately after the stock acquisition, the statements of financial position of Marigold...
-
EPAL Corporations manufactures and sells heavy machineries. The management team has established the Total Quality Management (TQM) culture in the company and has gathered the financial information...
-
How most of the problems occurring in this situation stems from that inflexible money supply. With the Fed choosing to forego monetary policy, other factors in the market will naturally adjust to...
-
1. Show various Utility Curves and how H&M's prices touches various Utility Curves. Explain How. 2. H&M uses product line pricing, where products within the same line are priced differently based on...
-
5.2 INFORMATION: Trencor Limited has provided the following information: 1. Total sales ACTUAL BUDGETED July August September October November December R520 000 R540 000 R580 000 R610 000 R650 000...
-
During the Covid epidemic, McDonald's, like other food brands, encountered issues as a result of fewer customers and supply chain interruptions. These variables influenced McDonald's product demand...
-
Finished goods inventory on September 30, 2019 was 3,000 units. Projected sales for January are 25,000 units. The sales price is $100 per unit. The company tries to keep ending finished goods...
-
Imagine holding two identical bricks under water. Brick A is just beneath the surface of the water, while brick B is at a greater depth. What is the force needed to hold brick B in place? (Assume the...
-
Why do bars offer free peanuts?
-
Jeff Jacobs is a junior accountant with the public accounting firm of Maxwell and King LLP. Jeff was assigned to do the audit of Astor Electronics Inc. The in-charge auditor informed Jeff that, based...
-
Access CPA Canadas CAS 450, Evaluation of misstatements identified during the audit, to answer the following questions: a. What are the three types of misstatements that can be identified by an...
-
List one possible internal control for each of the five assertions for cash disbursements transactions. For each control, list a test of controls to test its effectiveness.
-
Internet Inhand Ltd began producing netbooks on 1 July 2019. A unit of production passes through two processes manufacturing and finishing. Production data for the month of July are presented below....
-
Tsoulos, Tsoulakis and Associates is a small firm of architectural consultants. At 1 July 2018, three architects other than the principals, Tony Tsoulos and Maria Tsoulakis, are employed. The...
-
Melaleuca Manufacturing Ltd produces timber felling machines for the forestry industry around the world. Its two machines are the Tree Toppler, which cuts down trees and clears undergrowth, and the...
Study smarter with the SolutionInn App