Financial audit

ISSUES IN ACCOUNTING EDUCATION Vol. 23, No. 2 May 2008 pp. 299–307 Assessing Audit and Business Risks at Toy Central Corporation Christine E. Earley and Fred Phillips INTRODUCTION [pic]s a senior in a professional services firm, you have been assigned to plan the financial statement audit of a private company named Toy Central Corporation (TCC). In addition, the partner on the engagement has asked you to identify business risks that could adversely affect TCC’s sustained profitability

Solutions for the Biltrite Bicycles Inc. Case Module I - Assessment of Inherent Risk 2 Module II – Assessment of Control Risk 16 Module III - Control Test: Sales Processing 28 Module IV - PPS Sampling: Factory Equipment Additions 30 Module V - Accounts Receivable Aging Analysis 34 Module VI - Sales and Purchases Cutoff Tests 41 Module VII - Search for Unrecorded Liabilities 46 Module VIII - Dallas Dollar Bank Reconciliation 48 Module IX- Analysis of Interbank Transfers 51 Module X -

support the the company’s expansion. With the success of the business, Carla decided to sell the company’s shares. The financial statements prepared by Wendy, the Chief Financial Executive (CFO) were sent to potential investors. Due to the company’s good performance, Carla gave bonus to Wendy and shares to the senior staffs (including Wendy). However, a report released by The Age

assertions” were relevant to Paragon’s construction projects? Describe an audit procedure that Arthur Anderson could have employed to corroborate that assertion for each. Professional auditing standards identify 5 “management assertions” that commonly underlie a set of financial statements. These 5 assertions are: occurrence, completeness, valuation/allocation, rights/obligations, and presentation/disclosure. With respect to the audit of Paragon’s construction project, some of these key assertions were

ISSUES IN ACCOUNTING EDUCATION Vol. 23, No. 2 May 2008 pp. 299–307 Assessing Audit and Business Risks at Toy Central Corporation Christine E. Earley and Fred Phillips INTRODUCTION [pic]s a senior in a professional services firm, you have been assigned to plan the financial statement audit of a private company named Toy Central Corporation (TCC). In addition, the partner on the engagement has asked you to identify business risks that could adversely affect TCC’s sustained profitability

8-16 (Analytical procedures) In audit planning the audit of Circuits Technology, Inc. (CTI). CTI resells, installs, and provides computer networking products (client software, gateway hardware and software, and twinax hardware) to other businesses. Figure 8-14 provides some summary information from CTI’s financial statements. Required a. Calculate purchases, gross margin, inventory turn days, accounts receivable turn days, and accounts payable turn days for the years ended 20x2, 20x3, 20x4

Cupertino is serious about his responsibilities and obligations for coordinating the work of the internal auditing department and the external auditors. Plus, he has responsibility to the public of having accurate financial statements. The internal and external stakeholders could be potentially negatively affected because of what Campbell decided to do with the transactions, just to have enough or over enough revenue in sales. The production and shipment of the transactions

10-32)          Ch. 11: Comprehensive Questions: Assessing control risk (11-21) 8-15 | (Analytical procedures) In audit planning the audit of Construction Industry Resources, Inc., a building supply company. You have completed analytic procedures relevant to purchases and inventory. The results of these procedures are included in Figure 8.13.Figure 8.13. Selected Financial Information ($000) | X1 | X2 | X3 | X4 | X5 | Building supply revenues | $ 90,100 | $ 99,380 | $ 117,468 | $ 137,085

Audit Plan – Keystone Computers An outer evaluator surveys an organization 's money related reporting procedures to authenticate that the monetary articulations decently and precisely speak to operational results and fit in with sound accounting standards. The review procedure gives a sensible, irrefutable reason for the evaluators ' supposition with respect to the budgetary explanations. A review arranges depicts the different methods that will be utilized and the reason for those systems. While

Learning Approach, (3rd edition), by Beasley, Buckless, Glover, and Prawitt: Case 8.1: Laramie Wire Manufacturing: Using Analytical Procedures in Audit Planning Requirements 1. 1. Perform analytical procedures to help you identify relatively risky areas 2. indicate the need for further attention during the audit, if any. 2. Focus specifically on each of the five management assertions (existence or occurrence, completeness, valuation or allocation, rights