Principles Of Auditing & Other Assurance Services
21st Edition
ISBN: 9781259916984
Author: WHITTINGTON, Ray, Pany, Kurt
Publisher: Mcgraw-hill Education,
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Question
Chapter 13, Problem 39P
a.
To determine
Explain the incomplete aspect of the given analysis.
b.
To determine
Explain the two different types of contractual arrangements that may be inferred from the analysis.
c.
To determine
Suggest additional auditing procedures that should be performed by the staff assistant before accepting the working papers.
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Check out a sample textbook solutionStudents have asked these similar questions
Which of the following types of documentary evidence should the auditor consider to be the most reliable?
Select one:
a. A sales invoice issued by the client and supported by a delivery receipt from an outside trucker.
b. Confirmation of an account payable balance mailed by and returned directly to the auditor
c. An audit schedule prepared by the client’s controller and reviewed by the client’s treasurer.
d. A check, issued by the company and bearing the payee’s endorsement, that is included with the bank statements mailed directly to the auditor
Required: For each of the following independent scenarios
a) Indicate the type of auditor’s report to be issued. Include the type of opinion and any other modifications.
b) Justify your conclusion by describing the conditions and nature of the issue that is affecting the type of the audit report to be issued
Scenario 1
Skyway Hardware and Electronic Inc. (SHEI), a publicly listed entity, has a material unsecured loan receivable balance owing from Parts Supply Ltd. (PSL). SHEI has an October 31st year end. PSL declared bankruptcy on November 28, 2021. The auditors completed their field work for the audit of SHEI on December 12th and it is the auditors’ judgement that the loan receivable is impaired and should be written down. Management of SHEI disagree with this assessment and have refused to write-off the debt. SHEI is otherwise a profitable entity and the future outlook for the company is positive as it has recently secured 4 new customers.
Indicate the type of audit…
Select the necessary words from the list of possibilities to complete the following statements.
1. Working papers of audit interest over an extended period of time should be filed in the
is a type of documentary evidence transmitted directly to the auditors by a third party (e.g., a
customer or a vender).
2
A
3.
A letter signed by officers of the client company at the auditors' request which sets forth certain assertions
about the company's financial position and operations is known as a
Statements
4
The audit approach of evaluating financial statement information by a study of relationships among financial
and nonfinancial data is
5. The term
relates to the quantity of evidence that the auditors should obtain.
6.
The risk of material misstatement is composed of two risks that the auditor assesses, those risks are inherent
risk and
risk.
7.
The auditors develop
client's accounting records.
to recommend to management to correct the effects of errors or fraud in the
8. The amount of…
Chapter 13 Solutions
Principles Of Auditing & Other Assurance Services
Ch. 13 - Prob. 1RQCh. 13 - K-J Corporation has current assets of 5 million...Ch. 13 - Prob. 3RQCh. 13 - Prob. 4RQCh. 13 - Explain the use of a system of authorizations for...Ch. 13 - Moultrie Company discovered recently that a number...Ch. 13 - Does a failure to record the retirement of...Ch. 13 - Prob. 8RQCh. 13 - Prob. 9RQCh. 13 - Prob. 10RQ
Ch. 13 - Prob. 11RQCh. 13 - Prob. 12RQCh. 13 - Prob. 13RQCh. 13 - Prob. 14RQCh. 13 - Prob. 15RQCh. 13 - Gibson Manufacturing Company acquired new factory...Ch. 13 - Prob. 17RQCh. 13 - Do the auditors question the service lives adopted...Ch. 13 - Prob. 19RQCh. 13 - Explain how the existence of lease agreements may...Ch. 13 - Prob. 21RQCh. 13 - Prob. 22QRACh. 13 - Prob. 23QRACh. 13 - Gruen Corporation is a large diversified company...Ch. 13 - Prob. 25QRACh. 13 - Prob. 26QRACh. 13 - Prob. 27QRACh. 13 - Prob. 28QRACh. 13 - Prob. 29QRACh. 13 - Prob. 30QRACh. 13 - Prob. 31QRACh. 13 - To assure accountability for fixed-asset...Ch. 13 - Prob. 32BOQCh. 13 - Which of the following is an internal control...Ch. 13 - Which of the following accounts should be reviewed...Ch. 13 - Prob. 32EOQCh. 13 - Prob. 32FOQCh. 13 - Which of the following statements is not typical...Ch. 13 - Prob. 32HOQCh. 13 - Prob. 32IOQCh. 13 - An effective procedure for identifying unrecorded...Ch. 13 - Which of the following is not an overall test of...Ch. 13 - Prob. 32LOQCh. 13 - Prob. 33OQCh. 13 - Analysis of which account is least likely to...Ch. 13 - Prob. 34BOQCh. 13 - Prob. 34COQCh. 13 - Prob. 34DOQCh. 13 - A search for overstated property, plant, and...Ch. 13 - The following are typical questions that might...Ch. 13 - Prob. 36PCh. 13 - Prob. 37PCh. 13 - Chem-Lite, Inc., maintains its accounts on the...Ch. 13 - Prob. 39PCh. 13 - You are reviewing the property, plant, and...
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