Answer completely. This is accounting auditing. APPLIED AUDITING(Correction of Erors)Q2 (Sept 7)1. The first audit of the books for the D Corp. was made for the year ended December31, 2019. In reviewing the books, the auditor discovered that certain adjustmentshad been overlooked at the end of 2018 and 2019 and also that other items hadbeen improperly recorded.summarized below:Omission and other failures for each year areDecember201820191.1 Accrued sales salaries1.2 Accrued interest on investments1,9001,3259502,2501,1957502,5001.3 Prepaid insurance1.4 Advanced from customers2,750(Collections from customers had been included in salesbut should have been recognized as advances sincegoods were not shipped the following year)1.5 Equipment(Expenditures have been recognized as repairs butshould have been recognized as cost of equipment; thedepreciation rate on such equipment is 20% per year.but depreciation in the year of the expenditure is to berecognized at 10%).8,4009,000Required: Prepare the adjusting entries as of December 31, 2019

Error of ommission are those errors which are completely ommited to be recorded in the books of…

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Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter8: Specialized Audit Tools: Attributes Sampling, Monetary Unit Sampling, And Data Analytics Tools

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Problem 30RQSC

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Problem 1. You were engaged for the first time to audit the FS of Bebeko Corporation for the periodended December 31, 2020. The company started its operation in 2018. In reviewing the books, theauditor discovered that certain adjustments had either been overlook or improperly recorded at theend of years to 2020. Omissions and other failures for each year are summarized below:
Upon inspection of the records of Eisenhower Company in connection to its financial statement audit for the year ended December 31, 2022, the following errors were revealed: • A fire insurance premium of P 40,000 was paid and charged to insurance expense in 2021. This covers one year from April 1, 2021. • Inventory at December 31, 2020 was understated by P 80,000. • Inventory at December 31, 2021 was understated by P 120,000. • The year 2021 last quarter taxes amounting to P 60,000 were paid on January 19, 2022 and charged to expense account of 2022. • A cash advance of P 100,000 in payment of goods to be delivered in January 2022 was received on December 15, 2021 and credited to Sales. • The gross profit on sales is 40%. • The net income for the year ended December 31, 2021 before any adjustments is P 1,550.000. 1,200,000 1,440,000 1,550,000 1,600,000
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