Chapter 3, Problem 3.10DMP

The fieldwork for the December 31, 2016 audit of Treble Corporation ended on March 17, 2017. The financialstatements and auditor's report were issued and mailed to stockholders on March 29, 2017. In each of the materialsituations (1 through 5) below, indicate the appropriate action (a, b, c, d, or e). The possible actions are as follows:a. Adjust the December 31, 2016 financial statements.b. Disclose the information in a footnote in the December 31, 2016 financial statements.c. Request the client revise and reissue the December 31, 2016 financial statements. The revision should involvean adjustment to the December 31, 2016 financial statements.d. Request the client revise and reissue the December 31, 2016 financial statements. The revision should involvethe addition of a footnote, but no adjustment, to the December 31, 2016 financial statements.e. No action is required.The situations are as follows:________ 1. On January 16, 2017 a lawsuit was filed against Treble for a patent…

Answer at least 400 words. suppose your audit firm is in the intitial planning phase for the audit of apple for the year ended September 25, 2021. As the audit senior, you have been assaigned responsibility for gathering and summarizing information necessary to evaluate Apple's business risk. Required: Go to Apple's website (investor.apple.com) and explore the website. Click on the "SEC filings" link. Obtain the most recent SEC form 10-K (annual report for the fiscal year ended September 26, 2020) provided for Apple. Based on the information obtained from the website and your know ledge of the industry: 1. Prepare a memo discussing your understanding of Apple and its envirioment. Evaluate Apple's performance and the risk of misstatement, be sure to describe your reasoning.

Answer at least 400 words. suppose your audit firm is in the intitial planning phase for the audit of apple for the year ended September 25, 2021. As the audit senior, you have been assaigned responsibility for gathering and summarizing information necessary to evaluate Apple's business risk. Required: Go to Apple's website (investor.apple.com) and explore the website. Click on the "SEC filings" link. Obtain the most recent SEC form 10-K (annual report for the fiscal year ended September 26, 2020) provided for Apple. Based on the information obtained from the website and your know ledge of the industry: 1. Prepare a memo discussing your understanding of Apple and its envirioment. Evaluate Apple's performance and the risk of misstatement, be sure to describe your reasoning. 2. Professional auditing standards provide guidance on the auditor's consideration of an entity's business risks. What is the auditor's objective for understanding and entity's business risks? why does an auditor not…

You are the auditor of Banku Ltd. While conducting the audit of the company for the year ended 31 December 2017, you wanted to refer to the minutes book but the Board of Directors refused to give these books to you. Required: Discuss the implications of the directors’ action.

You are auditing the December 31, 2021, accounts payable balance of one of your firm's divisions. The division controller's office has provided you with a schedule listing the creditors and the amount owed to each at December 31, 2021, Which of the following audit procedures would be your best choice for determining that no Individual account payable has been omitted from the schedule?   A. Send confirmation requests to a randomly selected sample of creditors listed on the schedule   B. Send confirmation requests to creditors that are listed on the schedule but not listed on the corresponding December 31, 2020, schedule.   C. Examine support for selected 2022 payments to creditors, ascertaining that those relating to 2021 are on this schedule.   D. Examine support for selected 2022 payments to creditors, ascertaining that those relating to 2022 are not on the schedule.

Question 3: (35 Marks) As the in-charge senior auditor on the audit engagement for JA Tire Manufacturing for the year ended December 31, 2019, you are responsible for auditing the revenue cycle. The manager has instructed you to read JA Tire Manufacturing system provided on the first tab of the Excel file "Appendix 1_JATireSales_Data" before attempting this audit to familiarize yourself with the sales process and the relevant worksheets and terminology. This file contains sales transaction information for the year ended December 31, 2019. JA Tire has four sales divisions within Canada and sells primarily to large tire companies with regional warehouses that subsequently distribute to local retailers. Based on some of the risk assessment procedures already performed, you identified risks related to the fact that salespersons receive a commission on sales to distributors and the commission is calculated on a monthly basis. Your manager has asked you to perform analytical procedures as a…

Honey Crunch Limited started business in 2018. It is now 2021 and the Board of Directors of Honey Crunch Limited hired Aegis Solutions to recommend how each of the following types of accounting changes or errors should be dealt with.    As an audit assistant for Aegis, provide Honey Crunch with this information. For each issue write a note for the audit file (3-5 sentences) identify the type of accounting change or error, the appropriate accounting treatment, include amounts where applicable and how net income would be impacted if the issue needs correcting.   1. In early 2019, Honey Crunch changed its estimate from 5% to 4% of receivables on the amount of bad debt expense to be charged to operations. Bad debt expense for 2018, if a 4% rate had been used, would have been $8,000. The company adjusted Net Income in 2018 to reflect  the change.                                                                                                  2. The company changed its method of inventory…

Chapter 1: Introduction of Auditing A. Section 267 and 271 of the Companies Act 2016 respectively require for the private and public companies to appoint an auditor for each financial year. An auditor should ensure that the financial statements of the company are prepared in accordance with the relevant accounting standards. An auditor is guided by the auditing standards in order to obtain reasonable assurance that the financial statements are free from material misstatements. Required: i. Explain two (2) benefits of a financial statements audit performed by an approved company auditor. i. Explain the tem 'reasonable assurance'. i. Explain two (2) importance of auditing standards to an auditor in performing the assigned duties.

Consider the following independent situations, each of which applies to an audit of a client for the year ending 30th June 2019. XYZ Ltd is a large machinery manufacturer that uses business-to business e-commerce to transmit purchase orders to its many suppliers. Each supplier electronically transmits an invoice, which is credited directly to the accounts payable file. The goods usually take one or two weeks to arrive. Once they have been received, a goods received notes is raised by XYZ and matched with the supplier’s invoice, and payment is authorised. Spiral Ltd’s credit officer, whose prime responsibility was setting and reviewing customers’ credit limits, retired during the year. The position has remained unfilled for six months, as no suitably qualified and experienced replacement has yet not been found. Kent Ltd failed to discover an employee fraud on a timely basis because bank reconciliations were not being done each month. Required: For each of the above situations: What…