Auditing Q&As Get 2X Simpler : Page - 4

During your work, you discuss with others on the following issues.   One of the partners at the ABC Auditing Firm is auditing an international firm that is cross listed in the United States. There is a new accounting standard issued by FASB that requires managers to evaluate and disclose a firm’s going concern uncertainties on a quarterly basis. Previously, such mandates were not included in the U.S. GAAP. GAAS (Generally Accepted Aud...

Question 11.The following items are documented in the audit working papers: 1. Sales transaction included in the year ended December 31, 2016, but evidence from the cut-off procedure suggests that the sale should be dated January 2, 2017 ($1,250,000). 2. Warranty expenses in the trial balance for the year to December 31, 2016, total $150,000; the provision for warranty claims as at December 31, 2015, was $100,000. Evaluation of correspondenc...

Preliminary Audit PlanningTip 2: Preliminary Audit Planning Some cases may ask students to conduct preliminary audit planning. For example, in Unit 6, “YU CPA student, I could really use your help in preparing a preliminary audit plan.”. While there are a few different approaches for creating the audit memo, the most common approach is to use RAM (Risk, Approach and Materiality). You should have a separate heading for each of these s...

Course Code   :  IMDAFM304

Course Title   :  Auditing and Assurance

Ref style  :  Harvard

4/5 

Specific Audit Procedures for InventoryYou are an audit junior responsible for the audit of current assets of your firm’s client. You are now auditing the client’s inventory which is presented on the balance sheet as £1,500,000.   Required:  Discuss the specific audit procedures you would undertake in respect of this vehicle in relation to the following assertions.  a.Existence  b.Accuracy  ...

Course Code   :  ACCT3000

Course Title   :  auditing assurance and risk assessment

Ref style  :  Chicago

4/5 

Question 1 Consider the following independent situations, all of which apply to audits of entities for the year ending 31 December 20X7: (i) Slipway Limited, a listed company, has been experiencing declining sales over the last 2 years. Cost cutting has proved difficult due to the high level of imported machinery used in Slipway’s operations and consequently margins have been falling. While the bankers are presently happy to continue ...

Course Code   :  BUS020X649A

Course Title   :  audit practice and ethics

Ref style  :  Harvard

4/5 

Prohibition on Providing Both Audit and Non-Audit ServicesFour Chimps has recently appointed a new non-executive director, Laura Januzzi. She is concerned that Four Chimps do not have an internal audit department and is further concerned that the executive directors of Four Chimps are unable to demonstrate to her satisfaction that the national food hygiene regulations governing the sector are being fully complied with in all twelve trading loc...

Assignment You are a senior auditor working on the audit of HealthyGlow for the year ended 30 June 2021. You are in the planning stage of the audit. It is April 2021 and you discover that HealthyGlow has recently acquired two new, full-body scanning machines, representing the very latest in technology, at a cost of more than $10 million each. The machine enables a full 360 degree scan of the body with the ability to identify tumours, cysts and o...

1.Analytical Review Procedures: SaundersTechnologiesLtd.’s (Saunders) balance date is 30 March. Here is information relating to the expected financial information for 2021.In 2020, the actual cash balance was $527,000 but due to changes in circumstances, the company expects to have a bank overdraft of $206,000 in 2021. The Trade Receivables are expected to increase from $580,000 to $899,000 over this period while the Inventory account will ...

Course Code   :  BAAFM13

Course Title   :  auditing

Ref style  :  Not Selected

4/5 

Control Activities for a Sales SystemQuestion 1 Star Buy Clothing (SBC) manufactures affordable ladies clothing.Due to its recent rapid growth it now requires a statutory audit and your firm has been appointed as auditor, in preparation for which you are conducting a review of its internal controls over sales. a) Advise FOUR control activities that you would expect to see operating in a sales system. Upon review of SBCs sales system you note the...

Determining Errors and Unadjusted DifferencesQUESTION 1You have just finished audit testing and are gathering the evidence to determine if the audit work performed is sufficient and appropriate.The audit partner has asked you to analyze the errors identified in the file and determine what entries if any should be made on the Summary of Unadjusted Differences. You have reviewed the working papers and determined that the following items were notad...

Ref style  :  MLA

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Background1 GSH TERM-CONTRACTING IRREGULARITIES Background The Government Services Handling (GSH), frequently referred to as the housekeeper of the Federal Government," is an agency that deals in a vast range and variety of contracting and procurements. In 1978, GSH was rocked by a series of scandals within the Public Buildings Service (PBS) that exposed an elaborate conspiracy to defraud the U.S. Government. Centered in Washington, D.C., at the...

Building on Individual Assignment 1, you are the engagement manager conducting the financial statement audit of your selected company. You are now required to use your planning memo as a guide to prepare detailed audit procedures for ONE of your identified risks to the financial statements. The procedures may be presented in a memo or spreadsheet and is due at the conclusion of class 10. This assignment is worth 10% of the course grade As in Ind...

Background informationProfessional and Ethical Standard, (PES) 1, requires that professional accountants have the competence to undertake an audit. ISA (NZ) 315 outlines procedures that auditors must follow in gaining an understanding of a business. Assume that you are a manager in an auditing firm in New Zealand and your firm has been approached by the Auditor General’s Office to carry out their audit of Air New Zealand for the years ende...

TaskTask: In lectures and tutorials you were introduced to inherent risks and how they impact on the planning of an audit. You were told that there are difference “levels” of inherent risk analysis starting with a general inherent risk analysis which identifies a series of general inherent risks which may exist in an entity which could cause material misstatement. These general risks can be found on page 239 of the textbook. The ne...

During the course of an audit, three (3) letters are commonly used by the auditors. These are (i) letter of engagement, (ii) management representation letter, and (iii) management letter.Required:a)   Who issues these documents and to who?b) At which phase of the audit are these documents executed? c) Explain the difference between management representation letter and management letter. (3 marks) Question 2 "Audit risk is a function ...