In performing risk assessment procedures for property, plant and equipment, an auditor may inquire of the client personnel which of the following questions? a. Is depreciation calculation and recording automated? b. Is there periodic physical count and tagging of property, plant and.equipment? Is the result of the count reconciled to ledgers and general ledgers? C. Both a and b. d. Neither a nor b.
Q: A company issued a 3,000,000 6-year bonds dated January 1,2021, with a stated interest rate of 11%. ...
A: Cash Flow at the time of maturity = 3000000 Interest (Annuity) semi-annually = (3000000 * 11) ...
Q: Worldwide Corp.'s statement of financial pasitian accounts as of December 31, 2019 and 2018 and info...
A: Calculation of Cash Flow from Operating Activities. Net Income 1250000 Adjustment for non-cas...
Q: S1: In indirect tax, the impact of taxation and incidence of taxation lie on the same subject. S2: I...
A: S1 is false as in indirect tax, the impact of taxation lies on one person while the incidence of tax...
Q: Using the following balance sheet and income statement data, what is the debt to assets rati Current...
A: Formula: Debt to Assets ratio = Total liabilities / Total Assets
Q: How much is the accumulated depreciation at the 10th year.
A: As the method of depreciation is not mentioned in the question, straight line method of depreciation...
Q: Depletion On January 2, 2019, Whistler Company purchased land for $430,000, from which it is estimat...
A: Depletion expenditure is the cost associated with natural resources (such as oil, fossil fuels, and ...
Q: Calculate debt/equity ratio at December 31, 2020 and 2019. WIPER INC. Condensed Balance Sheets Decem...
A: Lets understand the basics. Debt equity ratio indicates how much company's asset is finance through ...
Q: Capital budgeting techniques aid businesses with investment decision-making. Many approaches can be ...
A: capital budgeting is such a method that involved choosing the project that will add value to the com...
Q: Aircard Corporation tracks the number of units purchased and sold throughout each accounting period ...
A: Solution a: Computation of COGS and ending inventory - Periodic FIFO Particulars Cost of goods ...
Q: You audited the financial statements of PIS Corp. for the first time in 2022. The company started it...
A: Solution Working note- Year 2020 2021 2022 Unadjusted 104000 140000 160000 B-Omission of prep...
Q: East Mill Pizzeria is closing its business. It sold its two-year-old pizza ovens to Marco's Italian ...
A: Cost = $800000 Residual Value = $50000 Useful Life = 10 Years Annual Depreciation = (Cost - Residual...
Q: On January 1, 2020, Zen Company acquired trading securities with the following market value on Dece...
A: The trading securities are recorded on the fair value in the balance sheet. But the gain on such fai...
Q: On January 1, 2022, a company issued serial bonds with a face value of P3,000,000 and stated rate of...
A: The question is based on the concept of Financial Accounting.
Q: On January 1, 2019, Caswell Company signs a 10-year cancelable (at the option of either party) agree...
A: Given:rental payments=$10,000 Executor costs = $7,000 annually
Q: Question 1 M & C Corporation charter authorizes 1,000,000 shares of common stock and 100,000 shares...
A: These are the accounting transactions that are having a monetary impact on the financial statement o...
Q: Curve Company reported the following shareholders' equity on January 1, 2020: Ordinary share capital...
A: On May 2021, Number of shares issued in connection with bond warrant = 10000 shares @ P 120 per shar...
Q: Please describe the primary characteristics for governmental and not-for-profit entities. How does t...
A: The word business organization refers to how businesses are built and how that structure helps them ...
Q: Weighted average cost per unit = per unit. Cost Cost of Goods Allocation Cost of Goods Sold Ending I...
A: Sales = (50 units x $120) + (25 units x $125) = $6000 + $3125 = $9125 Cost of Goods Available = (100...
Q: What is your estimate of the stock's current price?.
A: Required Rate of Return on Equity = Risk Free Rate + (Beta x Market risk Premium) Current Share Pric...
Q: On March 1, 2022, a company issued a four-year, P3,000,000 face value, 11% term bonds for P3,197,87...
A: Bond is issued by the company for raising finance for the business working. It is considered a cheap...
Q: On April 1, 2028, A Company issued a P 9,000,000 non-interest-bearing note due March 31, 2031, for a...
A: In the above question, there are 2 separate questions, the first one is relating to Notes and 2nd is...
Q: he following costs were incurred in February: Direct materials = PhP1,950,000 Direct labor = P...
A: Prime cost consists of direct material cost, direct labor cost & directly chargeable expenses. I...
Q: On January 5, 2022, a company received a P5,000,000-complaint from one of its employees who suffered...
A: As per the provisions of standard accounting principles, the contingent lia...
Q: Hamilton Company uses a periodic inventory system. At the end of the annual accounting period, Decem...
A: Inventory valuation method includes: FIFO method LIFO method Weighted average cost method FIFO Met...
Q: Tackett Company sells a single product for $75 each. the variable costs are $45 each. Total fixed co...
A: Contribution margin per unit = $75 - $45 = $30
Q: CFAS Company showed the following information from its shareholders' equity at year-end before the e...
A: Accounting Entry to be made: General Journal Debit Credit Common Stock (5100 shares * P125) ...
Q: The following is the alphabetical adusted trial balance of Meadows Company on December 31, 2019: 1....
A: Balance sheet is one of the financial statement which shows all assets, liabilities and equity of th...
Q: AUBRRIS Trading was organized and began operations on May 1, 2021. 0n that date, Aubrey invested P1,...
A: In the context of the given question, we can compute the total share of Aubrey in the profit for the...
Q: Emily Rose Company showed the following data: Preference share capital, par value P20, 100,000 share...
A: Shares: Shares are the units owned by company which are classified into two types, common shares or ...
Q: Calculate the dividend payout ratio for 2020. (Do not round intermediate calculations.)
A: Lets understand the basics. Dividend payout ratio indicates that, how much amount of net income is p...
Q: The following transactions were completed by the company. a. The company completed consulting work f...
A: Please see Step 2 for required information.
Q: CFAS Corporation was organized on January 1, with an authorization of 1,000,000 ordinary shares with...
A: share premium account is created when there is the difference in the par value or face value of the ...
Q: 52. Nicanor sold his rest house in Pangasinan for P 8,000,000. The Fair market value of the rest hou...
A:
Q: Economic Value Added (EVA
A: EVA is an important concept in the world of finance and accounting. It is one of the often used fina...
Q: Roses and Thorns Inc. involved in selling chocolate bar. During 2016, 100,000 bars were sold for a u...
A: Degree of operating leverage = Contribution margin / Earnings before interest and taxes where, Cont...
Q: 4 Lukin Corporation reports the following first year production cost information: Units produced Uni...
A: Absorption Costing: Absorption costing, often known as "full costing," is a management accounting ap...
Q: MD Manufacturing Company is estimating the following raw material purchases for the last four months...
A:
Q: Spiceland Corporation is in the process of obtaining a loan at City Bank. The bank has requested aud...
A: Here student asked for multi sub part question we will solve first three sub part question for you. ...
Q: Can you explain how budgetary accounting contributes to achieving budgetary control over revenues an...
A: Budgetary control is financial jargon for managing income and expenditure. In practice it means regu...
Q: Chapter 13: Overall Audit Strategy and Audit Program The following are two situations, all involvi...
A: The goal of auditing is to verify the financial statements' declared financial situation. It's a che...
Q: A. G Company manufactures two products: Product S and Product T. During January, 50 units of Product...
A: Lets understand the basics. For calculating overhead rate, we will need to use below formula. Overhe...
Q: Utility Expense.
A: If income and Liabilities are increased then it will be credited
Q: The audit risk model consists of: AR = IR x CR x DR. The detection risk is the dependent variable. ...
A: Level of Detection Risk is dependent on levels of Inherent Risk and level of Control Risk. There is ...
Q: Congratulations on your appointment as a Tax Trainee at a recognized audit firm in Jamaica. On your ...
A: Tax Written Down Value (TWDV):- The tax written down value (TWDV) of a resource is the use remaining...
Q: t on the account is 10% compounded semi-annually, for how long does Laura have to deposit the money?...
A: The answer has been mentioned below.
Q: Below is an income statement for Howell Company: Sales $600,000 Variable costs (150,000) Contributi...
A: The break even sales are the sales where business earns no profit no loss during the period. The bre...
Q: ontier Corp. sells units for $40, has unit variable costs of $12, and fixed costs of $133,000. Front...
A:
Q: On April 1, 2028, A Company purchased three units of baking equipment by issuing a four-year, non-in...
A: Carrying value of note on April 1, 2028 = Present value of the Notes on April 1, 2028 where, Present...
Q: Assuming a periodic inventory system is used, the journal entry to record the purchase of merchandis...
A: Let's understand some basics Merchandise is the term used to refer to any goods purchased for the pu...
Q: Pens and Prints manufactures and sells T-shirts imprinted with college names and slogans. Last year,...
A: Solution: Last year contribution margin per unit = $7.50 - $2.25 = $5.25 per unit Before tax net inc...
Step by step
Solved in 2 steps
- In performing risk assessment procedures for property, plant and equipment, an auditor may inquire of the client personnel which of the following questions? a. Is depreciation calculation and recording automated? b. Is there periodic physical count and tagging of property, plant and equipment? Is the result of the count reconciled to ledgers and general ledgers? C. Both a and b. d. Neither a nor b. O a Od Oc ObIn performing risk assessment procedures for property, plant and equipment, an auditor may inquire of the client personnel which of the following questions? a. Is depreciation calculation and recording automated? b. Is there periodic physical count and tagging of property, plant and equipment? Is the result of the count reconciled to ledgers and general ledgers? c. Both a and b. d. Neither a nor b. Group of answer choices a c b dIn performing risk assessment procedures for property, plant and equipment, an auditor may inquire of the client personnel which of the following questions? a. Is depreciation calculation and recording automated? b. Is there periodic physical count and tagging of property, plant and equipment? Is the result of the count reconciled to ledgers and general ledgers? c. Both a and b. d. Neither a nor b.
- In the examination of property, plant, and equipment, the auditor tries to determine all of the followingexcept theA. Effectiveness of the internal control structureB. Authorization of property abandoned during the yearC. Presence of an insurance policy related to property, plant, and equipmentD. Availability of company’s depreciation policyE. None of them1. Of the following assertions, which is generally considered a particularly high risk for self-constructed fixed assets? a. Completeness b. Presentation c. Ownership (rights) d. Valuation 2. Which of the following types of fixed assets is considered to have higher inherent risk? a. Leased fixed assets b. Purchased equipment c. Vehicles d. Purchased buildings 3. Which of the following is the usual audit procedure for testing the existence assertion for fixed assets? a. Vouching a sample of additions to fixed assets made during the fiscal year being audited, to supporting vendor invoices. b. Vouching a sample of deletions of fixed assets made during the fiscal year being audited and prior years, to supporting vendor invoices. c. Tracing a sample of vendor invoices to debits to fixed assets during the fiscal year being audited. d. Substantive analytical procedures 4. An auditor has been assigned to audit the existence assertion for fixed assets. The auditor (a Mercer graduate) should…The auditing procedure that could least likely lead the auditor to find unrecorded property, plant, and equipment disposals isA. Vouching purchase invoices for asset additions.B. Review of voucher for the payment of property taxes.C. Review of miscellaneous income accountD. Review of loan agreement for fixed assets used as collateralE. None of them
- explain. If, after obtaining an initial understanding of a client's internal control, the auditor wishes to further reduce the assessed level of control risk relating to plant asset transactions, the auditor should next Make extensive substantive tests of plant asset balances. Establish the physical existence of current year additions. Complete the plant asset section of the internal accounting control questionnaire. Further test those internal control procedures relating to processing and recording plant asset transactions.When auditing the existence assertion for an asset, auditors proceed from thea. Financial statement amounts back to the potentially unrecorded items.b. Potentially unrecorded items forward to the financial statement amounts.c. General ledger back to the supporting original transaction documents.d. Supporting original transaction documents to the general ledger.Which of the following best describes why auditors audit leased assets in conjunction with the audit of property, plant & equipment? Multiple Choice (B & D are incorrect) A. Most leased assets should be capitalized. B. Repairs and maintenance expense is affected by leased assets. C. Management may choose to lease assets rather than buy them. D. Leased assets have a higher risk of misstatement.
- When an auditor reviews additions to the equipment (fixed asset) account to make sure that fixed assets are not overstated, she wants to obtain evidence as to management’s assertion regardinga. Completeness.b. Existence.c. Valuation and allocation.d. Rights and obligations.e. Occurrence1) The auditors analyze repairs and maintenance expense to: a)determine that plant & equipment accounts are not understated. b)determine that all maintenance items are recorded. c)determine that plant & equipment accounts are not overstated d)determine that maintenance expense amounts are authorized. 2)In auditing valuation of property, plant and equipment when its value is impaired, the auditors should: a)recalculate the depreciation expense on the item. b)recompute the net book value of the item. c)vouch the purchase of the item. d)evaluate the valuation model used for the item. 3)Which of the following best describes why auditors audit leased assets in conjunction with the audit of property, plant & equipment? a)Management may choose to lease assets rather than buy them. b)Leased assets have a higher risk of misstatement. c)Most leased assets should be capitalized.d)Repairs and maintenance expense is affected by leased assets. 4)Which of the following best…RISK-BASED AUDIT PROCESS Direction: discuss the process of auditing the following transactions/accounts:• Inventories• Property, plant, and equipment (PPE)• Renewal and reconditioning costs• Revenues• Rehabilitation bonds