Principles Of Auditing & Other Assurance Services
21st Edition
ISBN: 9781259916984
Author: WHITTINGTON, Ray, Pany, Kurt
Publisher: Mcgraw-hill Education,
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Chapter 12, Problem 35OQ
To determine
Review the documents and exhibits presented by the associates.
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Spreadsheet software would be most useful for which of the following audit activities?a. Testing internal controls over computerized accounting applications.b. Preparing an audit plan.c. Preparing a comparison of current-year expenses with those from the previous year.d. Drafting a planning memorandum.
Think about the accounting courses you have taken to date. Assets, Liabilities, Stockholders Equity are sections in the balance sheet. The auditor must consider each section in their audit. Discuss the sections and the accounts in those sections that you believe require enhanced focus in an audit and explain your choices.
Course Name: Auditing (Accounting)
Write a concise answer between 350 to 400 words for each question.
a) The purpose of an audit is to enhance the degree of confidence of interested users in the financial statements. How can you achieve this purpose? Explain.
b) “Sufficiency of audit evidence and appropriateness of audit evidence are essential for arriving at the conclusions on which the auditor’s opinion is based.” Elaborate the statement.
Chapter 12 Solutions
Principles Of Auditing & Other Assurance Services
Ch. 12 - Prob. 1RQCh. 12 - Explain the significance of the purchase order to...Ch. 12 - What segregation of duties would you recommend to...Ch. 12 - Prob. 4RQCh. 12 - Prob. 5RQCh. 12 - Prob. 6RQCh. 12 - Prob. 7RQCh. 12 - Prob. 8RQCh. 12 - Prob. 9RQCh. 12 - When perpetual inventory records are maintained,...
Ch. 12 - What is meant by a bill and hold scheme?Ch. 12 - What charges and credits may be disclosed in the...Ch. 12 - Prob. 13RQCh. 12 - Prob. 14RQCh. 12 - A well-prepared balance sheet usually includes a...Ch. 12 - Darnell Equipment Company uses the LIFO method of...Ch. 12 - Prob. 17RQCh. 12 - Prob. 18RQCh. 12 - Prob. 19RQCh. 12 - Prob. 20RQCh. 12 - Prob. 21QRACh. 12 - Prob. 22QRACh. 12 - Prob. 23QRACh. 12 - Prob. 24QRACh. 12 - Prob. 25QRACh. 12 - Prob. 26QRACh. 12 - Prob. 27QRACh. 12 - Grandview Manufacturing Company employs standard...Ch. 12 - Prob. 29AOQCh. 12 - Prob. 29BOQCh. 12 - The document issued by a common carrier...Ch. 12 - Which of the following should be included as a...Ch. 12 - Prob. 29EOQCh. 12 - Prob. 29FOQCh. 12 - Instead of taking a physical inventory count on...Ch. 12 - Prob. 29HOQCh. 12 - Prob. 29IOQCh. 12 - Prob. 29JOQCh. 12 - Prob. 29KOQCh. 12 - Prob. 29LOQCh. 12 - Prob. 30OQCh. 12 - Adapted AICPA Task-Based Simulation For each of...Ch. 12 - Prob. 32OQCh. 12 - Prob. 33OQCh. 12 - Prob. 34AOQCh. 12 - Prob. 34BOQCh. 12 - Prob. 34COQCh. 12 - Prob. 34DOQCh. 12 - Prob. 34EOQCh. 12 - Prob. 35OQCh. 12 - Prob. 36PCh. 12 - Prob. 37PCh. 12 - Prob. 38PCh. 12 - Prob. 39PCh. 12 - Prob. 40PCh. 12 - Prob. 41PCh. 12 - Prob. 42PCh. 12 - Prob. 43ITCCh. 12 - Prob. 44ECCh. 12 - Western Trading Company is a sole proprietorship...
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- Audit plan is always prepared after conducting: a. Interview of employees b. Review of financial statements c. A risk workshop d. Interview of managementarrow_forwardThe auditor should summarize the overall audit strategy that contains the key decisions about the scope, timing, and conduct of a. Audit plan O b. Note. C ..Review working papers d. Audit memo bookarrow_forwardComprehensive Problems (covers all content) Problem 11: List the Summary of the Audit Process in correct phases (from beginning to end of audit): Perform analytical procedures and tests of details of balances Complete the audit and issue and audit report Plan and design an audit approach Perform tests of controls and substantive tests of transactions Phase 1 ______ Phase 2 ________ Phase 3 ________ Phase 4 ________ Give an example of each step.arrow_forward
- Performance Task #1. Introduction to PSA 401 Instructions: Provide for the requirements given to you below. Output must be placed in a Microsoft Word following the formats specified. Your answers must be in paragraphs and must contain first person point of view. God bless! 1. Explain the sentence "The overall objective and scope of an audit does not change in a CIS environment. However, the use of a computer changes the processing, storage and communication of financial information and may affect the accounting and internal control systems employed by the entity." 2. Explain why the auditor should have sufficient knowledge of the CIS to plan, direct, supervise and review the work performed. 3. Differentiate the process of planning the audit in a manual system and a computerized system. 4. Identify the risks of using a computerized system in the process of audit. 5. Explain the sentence "The auditor's specific audit objectives do not change whether accounting data is processed manually…arrow_forwardCourse Name: Auditing (Accounting) Write a concise answer between 500 to 550 words for each question. 3. The form and content of the audit engagement letter may vary for each company. Write a sample audit engagement letter and highlight the key areas .arrow_forwardYou are a trainee in audit firm and you have been assigned to verify the follow balances for IJK Limited; Account payables Vehiclesarrow_forward
- You are an audit student who has been invited to attend an interview for a graduate training program in auditing.At the interview you are asked question relevant to audit procedures. You are required to briefly describe the seventypes of audit procedures which can be used to obtain audit evidencearrow_forwardExplain all the five steps involved in the information system based audits in your own words. How would an auditor verify the source documents while auditing accounting information systems where business is conducted fully online?arrow_forwardTRUE OR FALSE: auditing 2. The concepts and principles on auditing and assurance introduce students to the theories underlying auditing services and provides opportunities to develop technical expertise in applying the concepts learned 3. The practitioner is required to pursue any matter which may lead to a material adjustment or modification to the subject matter of information 4. An independent auditor may participate in preparing financial statements including accompanying notes. 5. Nature of financial reporting involves preparation of financial statements based on the management’s judgment in applying an applicable financial reporting framework through coordination with the external auditorarrow_forward
- Identification of Audits and Auditors. Audits may be characterized as (a) financial statement audits, (b) compliance audits, (c) economy and efficiency audits, and (d) programaudits. The work can be done by independent (external) auditors, internal auditors, or governmental auditors (including IRS auditors and federal bank examiners). Following is a listof the purpose or products of various audit engagements. [Students may need to refer toChapter 1.]a. Analyze proprietary schools’ spending to train students for oversupplied occupations.b. Determine the fair presentation in conformity with GAAP of an advertising agency’sfinancial statements.c. Study the Department of Defense’s expendable launch vehicle program.d. Determine costs of municipal garbage pickup services compared to comparable servicesubcontracted to a private business.e. Audit tax shelter partnership financing terms.f. Study a private aircraft manufacturer’s test pilot performance in reporting on the resultsof test…arrow_forwardCourse Name: Auditing (Accounting) Write a concise answer between 350 to 400 words for each question. a) The primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management. Do you agree? Why or why not? Justify your answer. b) Communicating significant risks identified by the auditor helps those charged with governance understand those matters and why they require special audit consideration. Which matters should be communicated regarding identified significant risks?arrow_forwardChoose the documents which should be included in the audit documentation a. Summaries of significant matter O b. Issue memoranda O c. Audit program O d. All the optionsarrow_forward
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