services com rnal auditors presented the
Q: Exercise 4-9 Recording purchases, sales, returns, and shipping LO P1, P2 Following are the merchandi...
A: The journal entry is the first step in the accounting process which signifies recording of financial...
Q: Recording Standards in Accounts Cioffi Manufacturing Company incorporates standards in its accounts...
A: Direct Materials Price Variance = (Actual price - Standard price) x Actual quantity = (5...
Q: Plastic Designs Ltd manufactures and sells plastic storage boxes and containers. The Board of Direct...
A: Audit is basically involving the rechecking of all the company activities in order to verify whether...
Q: How would I solve this question in creating a double entry t-acount in solving the following questio...
A: In double entry system, every entry has two aspects ,that is, debit and credited. If one account is ...
Q: Customer return and refund On December 28, 20Y3, Silverman Enterprises sold $18,500 of merchandise t...
A:
Q: The following information has been obtained for Sheridan Corporation. 1. Prior to 2020, taxable inco...
A: Introduction:- Individuals or enterprises (taxpayers) pay an income tax depending on their earnings ...
Q: Ace Company stockholder’s equity at the end of 2015 is shown in the table below. Preference share c...
A: Cost per share of Treasury Shares = Total value of Treasury shares / Number of shares purchased
Q: Ending Work-in-Process Inventory was 2,500 units that were 100% complete as to materials and 25% com...
A: Beginning WIP= 7000 units (100% complete as to materials), Therefore, as per FIFO method, material n...
Q: A customer hands you $3,850 in cash and would like to purchase 14 prepaid cards of $275 each. The cu...
A: As per policy, POS register do not allows more than $ 2000 for a single transaction. Doing individua...
Q: You plan to borrow $49,400 at a 7.3% annual interest rate. The terms require you to amortize the loa...
A: Yearly installments= $49400* R* (1+R)^n/((1+R)^N-1) = 49400* 7.3%* (1+7.3%)^7/((1+7.3%)^7-1) = 9262
Q: If a person charges interest on a loan transaction equivalent to the inflation rate than will it be ...
A: Time value of the money is the value of the money which a person must use in order to know how much ...
Q: Accounting Timpano Communications Inc. reported the following shareholder's equity information on...
A: Stockholder's Equity - Stockholder's Equity includes the amount contributed by shareholders issued i...
Q: Jon Stone is paid $20 an hour for an 8-hour day, with time-and-a-half for overtime and double-time f...
A: Regular rate = $20 per hour ( for 8 hours a day ) Overtime rate = $20 x 1.5times = $30 Rate for Sund...
Q: Problem 4: A heavy planner was purchased 12 years ago for P 50,000 with no salvage value. As the li...
A: 1. Depreciation Expenses - Depreciation Expenses are the expense incurred on the wear and tear of th...
Q: M On May 31, 2012, Deana’s Services Company had account balances as follows: Accounts Paya...
A: Net income is the excess of revenues over expenses incurred. Net income = Revenues - Expenses
Q: A debenture is ________.A. the interest paid on a bondB. a type of bond that can be sold back to the...
A: The debentures are the financial instruments issued to raise money from the market.
Q: 4/3 Paid the Gazette $200 to place an employment advertisement for an accounting clerk. how to solve...
A: The whole cost of hiring a new employee, from job posting to the first day on the job, is referred t...
Q: 30. Process costing techniques should be used in assigning costs to products a. when production is ...
A: Introduction:- The following methods of cosing as follows under:- Job Costing Contract Costing Batc...
Q: Direct Write-Off Method Williams & Hendricks Distributors uses the direct write-off method in accoun...
A: Under direct write off method, the bad debt expense is not estimate and allowance is not created for...
Q: not-for-profit
A:
Q: What's the significance of identifying if the transaction is under operating, investing or financing...
A: Normally there are three types of activities 1) Operating activities 2) investing activities 3) Fina...
Q: An inventory of supplies showed $200 of supplies were left 2. There was $500 of depreciation on Fur...
A: 1. Income Statement 2. Balance Sheet The first statement shows the income earned and loss incurred b...
Q: [The following information applies to the questions displayed below.] In 2010 Casey made a taxable g...
A: Amount of gift tax in 2010 = 345800 + (11400000-1000000) x 40%= 345800+4160000 = 4505800 unused exem...
Q: How much does she have to include in taxable income?
A: Answer: Any settlement that is received after damage is taxable other than recovery for emotional da...
Q: A printing company manufactures notebooks of various sizes. The company manufactures 3,000 notebooks...
A: “Since you have asked multiple question, we will solve the first question for you. If you want any s...
Q: Henson company had determined the 2019 and 2020 net income to be 4,000,000 and 5,000,000 respectivel...
A: Net income is total earning of a firm that is obtained by sales-cost of goods sold ,operating expens...
Q: During the course of an audit of the financial statements of Julie Company for the yearended Decembe...
A: Working: Amount (P) Net Income for 2019 per books 2,000,000 Add: Net income decreased d...
Q: dule C, Transportatio Meals And ertainment, Margaret started her own business in the current year an...
A:
Q: Use the following information for the Exercises below. [The following information applies to the que...
A: Under perpetual method update of the no.of units , unit cost and total cost is made every time there...
Q: Willams Company computed its cost per equivalent unit for direct materials to be $180 and its cost p...
A: Finished goods inventory = No. of units completed and transferred x Cost per Equivalent unit where, ...
Q: Ace Company stockholder’s equity at the end of 2015 is shown in the table below. Preference share c...
A: No. of ordinary shares issued = Ordinary share capital / stated value per share No. of ordinary sha...
Q: A company issued 40 shares of $1 par value common stock for $5,000. The journal entry to recordthe t...
A: There are two type of stock or shares that are being issued by the company for raising of funds from...
Q: 1. Calculate the sales-price variance for latex-based paint 2. Calculate the sales-volume variance f...
A:
Q: Time left 2:46:35 Quiz Consider a firm that is currently producing a level of output that maximizes ...
A: a) Monthly Profit = $40 million - ($30 million + $20 million) = $40 million - $50 million = - $10 mi...
Q: Vhich of the following statements Is true with regard to activity-based costing? Multiple Cholce Act...
A: Solution: Under activity based costing, Cost are allocated to various cost pools and then their acti...
Q: Mr. Allan derived the following income in 2019: Business income Compensation income Interest income ...
A: The answer for the multiple choice question and relevant explanation are presented hereunder : Who a...
Q: XYZ Corporation has accounting income for the year ending October 31 of $ 174795. Included in this c...
A: Dividend received from Canadian subsidiary is not eligible for tax withholding. Therefore, dividend ...
Q: C and D are partners who share profits and losses in the ratio of 7:3, respectively. On October 5,20...
A:
Q: Which of the following statements is false?A. Noncash activities should be reported in accrual basis...
A: Financial statements are those financial statements which are prepared at the end of accounting peri...
Q: Problem 6. Use the following information for the next two questions: DISCALCED BAREFOOTED NAKASAKASA...
A: When an offer grants the option to acquire additional goods or services , such an option or offer is...
Q: Bank reconciliation using: a. Bank to book method; b.Book to bank method; and c.Adjusted balance met...
A: 1. Bank reconciliation using: a. Bank to book method
Q: A television company purchased machinery for BD20,000 in 2009. It is estimated to have a useful life...
A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage a...
Q: A plant is introducing time standards in one of its production departments. The department employs 6...
A: Annual Increase is a phrase or accounting term for yearly increase in profits or production or the ...
Q: Uncollectible Accounts-Percentage of Sales and Percentage of Receivables At the completion of the cu...
A: The allowance for doubtful accounts is created to record estimated bad debt expense period. Using sa...
Q: Medhurst Corporation issued $86,100 in bonds for $83,000. The bonds had a stated rate of 8% and pay ...
A: Formula used for calculating discount on bonds payable: Discount on bonds payable = issued price - c...
Q: The combination of the efficient set of portfolios with a riskless lending and borrowing rate result...
A: Solution Riskless asset is an asset that does not have any possibility of losses and the returns can...
Q: A mold for manufacturing powdered metal firearm parts is purchased by Remington at the beginning of ...
A: Depreciation under the Modified Accelerated Cost Recovery System seems to be a federal income tax sy...
Q: Discuss the Usefulness of the Statement of Financial Position (Balance Sheet) and The Statement of C...
A: Balance sheet or statement of financial position refers to a statement which provides a brief summar...
Q: 4/3 Paid the Gazette $200 to place an employment advertisement for an accounting clerk. how to solve...
A: A journal entry is a form of accounting entry that is used to report a business transaction in a com...
Q: Apply the COGS equation used on the bottom of page 6-3 of the VLN to the following data set to answe...
A: The cost of goods sold is calculated as difference between cost of goods available for sale and endi...
Identify the type of audits the CAE will consider in her planning specifically for findings number 1, 2, 4 and 7
Step by step
Solved in 2 steps
- PCAOB standards are used to conduct the audit for public companies. * True False If an auditor assigns a tolerable misstatement of $1,000 to accounts payable, he or she would need to obtain less audit evidence for that account than if $100,000 had been assigned. * True False An engagement letter establishes a clear understanding of the terms of the engagement between the client and the auditor. * True FalseInternal auditors may not perform:a. Audits of financial statements resulting in reports intended for management’s use only.b. Integrated audits leading to an audit opinion issued in accordance with PCAOB standards.c. Forensic audits.d. All of the above. An “integrated audit”, as required by Sarbanes-Oxley Act for U.S. public companies,includes an audit ofa. The company’s internal controlsb. The company’s financial statementsc. The company’s compliance with its rules and policiesd. Both A and B The auditor’s opinions on the effectiveness of internal control over financial reporting (ICFR) in anintegrated audit in accordance with PCAOB AS include the following types except:a. Unqualified where no material weaknesses exist.b. Qualified opinion where one or more material weaknesses exist.c. Disclaimer of opinion where the audit team cannot perform all of the procedures considerednecessary and is unable to determine whether material weaknesses exist.d. Adverse opinion where one or more…The PCAOB issues audit practice alerts to highlight new, emerging, or otherwise noteworthy circumstances. Revenue is the largest account in the financial statements for many companies, and many fraudulent financial reporting cases have involved the intentional overstatement of revenue. For these reasons, the audit of revenue is often a significant focus of PCAOB inspections. PCAOB Audit Staff Practice Alert No. 12, Matters Related to Auditing Revenue in an Audit of Financial Statements, provides guidance to auditors and also highlights several deficiencies in the audit of revenue as identified through inspections. Download the practice alert at www.pcaobus.org to answer the following questions: What are the deficiencies identified by the PCAOB related to the use of substantive analytical procedures in testing revenue? What sources of information does the PCAOB recommend auditors use to develop plausible expectations of revenue when performing substantive analytical procedures? What…
- Written representations are an important source of evidence to the auditor. Normally during the course ofan audit, management make oral representations to auditors on many matters. To reduce the possibility ofmisunderstanding, auditors may require such information to be confirmed in writing.The Audit Manager asked the CEO of the audit client to confirm via the Management Representation Letter thatthe debt owed by one of their major customers, namely Ironman Ltd, was collectible. The CEO confirmed that thedebt was collectible and included such in the Management Representation Letter.It was subsequently revealed via discussions with the Accountant of the audit client that a letter was receivedfrom Ironman Ltd a few weeks ago which indicated that they were in liquidation and could not honor their debt.The letter was given to the CEO who took the letter and advised the Accountant that he would handle it. The CEOsaid that he lost the letter when questioned about same by the Audit Manager.…Consider each of the following independent situations which have come to your attention. Ineach of the following independent and material situations assume that the client is areporting entity and that a general-purpose financial report has been prepared and audited Event 2: The management of Surf Limited's has refused to disclose a few, director relatedtransactions on the grounds of commercial confidentiality. The financial controller remindsyou that no other errors have been found in the financial report and states that thetransactions are immaterial and therefore irrelevant to the users of the financial report. Event 4: Upon review of the recent history of their specialised mining equipment MincoLimited changed the service lives for depreciation purposes on this equipment from five yearsto three years. This change resulted in a material amount of additional depreciation.Which of the following characteristics is most likely to heighten an auditor’s concernabout the risk of material misstatements due to fraud in an entity’s financial statements?(1) The entity’s industry is experiencing declining customer demand.(2) Employees who handle cash receipts are not bonded.(3) Internal auditors have direct access to the board of directors and the entity’smanagement.(4) The board of directors is active in overseeing the entity’s financial reporting policies.
- Jennifer Nelson, CPA, has posted the general ledger and has maintained the financial records of Quinn Corporation. As a part of her responsibilities she has recorded journal entries and made closing entries without consulting Quinn's management. Which of the following best summarize the AICPA and SEC views as to the following question: Is audit independence impaired? Item AICPA SEC A. Yes Yes B. Yes No C. No Yes D. No No A) Option A B) OptioD C) Option C D) Option BReed, CPA, accepted an engagement to audit the financial statements of Smith Company. Reed’s discussions with Smith’s new management and the predecessor auditor indicated the possibility that Smith’s financial statements may be misstated due to the possible occurrence of errors, fraud, and illegal acts. a. Identify and describe Reed’s responsibilities to detect Smith’s errors and fraud. Do not identify specific audit procedures b. Describe Reed’s responsibilities to detect Smith’s material noncompliance with laws. Do not identify specific audit procedures. c, Identify and describe Reed’s responsibilities to report Smith’s noncompliance with laws.Reed, CPA, accepted an engagement to audit the financial statements of Smith Company. Reed’s discussions with Smith’s new management and the predecessor auditor indicated the possibility that Smith’s financial statements may be misstated due to the possible occurrence of errors, fraud, and illegal acts. a. Identify and describe Reed’s responsibilities to detect Smith’s errors and fraud. Do not identify specific audit procedures b. Describe Reed’s responsibilities to detect Smith’s material noncompliance with laws. Do not identify specific audit procedures. c, Identify and describe Reed’s responsibilities to report Smith’s noncompliance with laws. Auditors must consider the possibility of fraud by employees or management on every audit engagement. They must also consider the possibility that the client has not complied with laws. (a) Distinguish between employee and management fraud. (b) Describe the auditors' responsibility for the detection of fraud in an audit. (c) Describe the…
- uestion:1 A privately held company recently outsourced its information processing system to a CPA who also has been asked to conduct the year-end financial statement audit. Management accepts responsibility for the information processed by the CPA and the CPA will not assume the role of an employee in any way. The statement pertains to AICPA code of conduct rule: A. Commissions and Referral Fees C. Independence B. Confidential Client Information D. Integrity and Objectivity$1: In addition to controls being specific, they may be broad, such as policies regarding code of ethics.$2: The auditor is concerned only with those policies and procedures that affect the assertions embodied within the entity's financial statements hence, management's view of internal control is broader.$3: In every financial statement audit, an auditor should obtain an understanding of internal control, even for audits of small owner-managed businesses that employ only one or few accounting personnel. A: Ifall statements are correct.B-If only one statement is correct.C- If only two statements are correct.D- If all statements are incorrect.KPMG is the auditor of an SEC registrant and cannot perform a management function. Which of the following is NOT likely to be considered as a management function? 1.Creating a strategic plan to overhaul their supply chain. 2.Providing a detailed implementation plan for deploying technology resources in a new way. 3.Designing internal controls for financial systems. 4.Providing generic training to staff on a new accounting standard.