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 15, Problem 35P
a.
To determine
Explain whether the understatement of $20,000 notes payable would be detected when the audit was made while the note was outstanding.
b.
To determine
Explain whether the audit subsequent to the payment of the notes would detect the misstatement of $20,000 if the fraud was not discovered while the note was outstanding.
c.
To determine
Recommend controls to avoid the given type of fraud.
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During your first audit of medium-size
manufacturing company, the owner, John Bell,
explains that in order to establish clear-cut lines of
responsibility for various aspects of the business,
he has made the following assignments: One
employee is responsible for the purchasing,
receiving, and storing of merchandise. A second
employee has full responsibility for maintenance
of accounts receivable records and collections
from customers. A third employee is responsible
for personnel records, timekeeping, preparation
of payrolls, and distribution of payroll checks. Bell
asks your opinion concerning this plan of
organization.
Instructions: Explain fully the reasons supporting
your opinion on each assignment. If the
assignment violates an internal control principle,
describe the principle and how to correct the
violation.
1. One employee is responsible for the
purchasing, receiving, and storing of
merchandise.
2: A second employee has full responsibility for
maintenance of accounts receivable…
Chapter 15 Solutions
Principles Of Auditing & Other Assurance Services
Ch. 15 - What does the trust indenture used by a...Ch. 15 - Long-term creditors often insist upon placing...Ch. 15 - Prob. 3RQCh. 15 - Prob. 4RQCh. 15 - Prob. 5RQCh. 15 - Prob. 6RQCh. 15 - Prob. 7RQCh. 15 - Prob. 8RQCh. 15 - Prob. 9RQCh. 15 - Prob. 10RQ
Ch. 15 - Mansfield Corporation has outstanding an issue of...Ch. 15 - Prob. 12RQCh. 15 - Prob. 13RQCh. 15 - What do you consider to be the most important...Ch. 15 - What is the primary responsibility of an...Ch. 15 - In the audit of a small corporation that issues...Ch. 15 - Prob. 17RQCh. 15 - Prob. 18RQCh. 15 - Prob. 19RQCh. 15 - Corporations sometimes issue their own capital...Ch. 15 - Prob. 21RQCh. 15 - Prob. 22RQCh. 15 - Prob. 23RQCh. 15 - Prob. 24RQCh. 15 - Prob. 25RQCh. 15 - Prob. 26RQCh. 15 - Prob. 27QRACh. 15 - Prob. 28QRACh. 15 - Prob. 29QRACh. 15 - You are retained by Columbia Corporation to audit...Ch. 15 - Prob. 31QRACh. 15 - Prob. 32AOQCh. 15 - Prob. 32BOQCh. 15 - Prob. 32COQCh. 15 - Prob. 32DOQCh. 15 - Prob. 32EOQCh. 15 - When a client uses paper stock certificates, an...Ch. 15 - Prob. 32GOQCh. 15 - The auditors can best verify a clients bond...Ch. 15 - Prob. 32IOQCh. 15 - All corporate capital stock transactions should...Ch. 15 - Prob. 32KOQCh. 15 - Prob. 32LOQCh. 15 - Prob. 32MOQCh. 15 - Prob. 32NOQCh. 15 - Prob. 32OOQCh. 15 - An auditor most likely would inspect loan...Ch. 15 - Prob. 32QOQCh. 15 - Match the following definitions (or partial...Ch. 15 - Prob. 34PCh. 15 - Prob. 35PCh. 15 - Prob. 36PCh. 15 - Prob. 37P
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