1. when inventory is sold ' on account' what accounts are affected? 2. steps/accounts in the...
1. when inventory is sold ' on account' what accounts are affected?
2. steps/accounts in the purchasing process
3. differences between substantive analytical procedures, tests of details of transactions, and test of details of account balances
4. types of subsequent event
5. responsibilties of management, auditors, internal auditors
6. different types of engagements
7. different types of audit opinions
8. diffrent types of audit report
Homework Answers
Dear student, only one question is allowed at a time. I am answering the first question
1)
When sales are made on account or on credit, following entry is made :
| Date | Particulars | Amount Dr | Amount Cr |
| XXXX | Accounts Receivable | xxxx | |
| Sales Revenue | xxxx | ||
| ( Being inventory sold on credit) |
So, when inventory is sold on account, following two accounts are affected :
Accounts Receivable Account ( Sundry Debtors ) which is a current asset and represents amount receivable from customers for goods sold
Sales Revenue Account which is a revenue account and represents sales value of goods sold on credit
Add Answer to:
1. when inventory is sold ' on account' what accounts are
affected?
2. steps/accounts in the...
Requirement a. Identify the phase of the audit in which each activity occurs. Phase of Audit...
Requirement a. Identify the phase of the audit in which each activity occurs. Phase of Audit Set acceptable audit risk and decide preliminary judgment about materiality 1. and performance materiality Understand internal control and assess 2. control risk. I. Plan and Design an Audit Approach Perform substantive analytical 3. procedures for accounts payable. II. Perform Tests of Controls and Substantive Tests of Transactions JII. Perform Substantive Analytical Procedures and Tests of Details of Balances 4. Confirm accounts payable. IV. Complete...
Question: Question 29 Assertions about classes of transactions and events typically include _______. -completeness, accuracy, and...
Question: Question 29 Assertions about classes of transactions and events typically include _______. -completeness, accuracy, and valuation -existence, rights, and cutoff -existence, rights, and obligations -occurrence, cutoff, and completeness Question 30 Assertions about account balances at year-end typically include _______. -existence, occurrence, and cutoff -existence, completeness, and allocation -existence, completeness, and rights and obligations -accuracy, valuation, and occurrence Question 31 Assertions about presentation and disclosure typically include _______. -cutoff, presentation, and disclosure -completeness, accuracy and valuation, and classification and understandability...
1. One of the initial steps in the audit process is to obtain a _______ that...
1. One of the initial steps in the audit process is to obtain a _______ that is used as an agreement between a CPA firm and a client for the conduct of an audit and related services. a)10-Q filed with the SEC b)Assessment report c)Audit and risk report d)Engagement letter 2. An auditor must consider both acceptable audit risk and inherent risk when planning an audit. These two types of risk affect the: a)Amount of evidence that needs to be...
1. a. Explain what we mean by the term substantive tests of transactions. Describe steps auditors...
1. a. Explain what we mean by the term substantive tests of transactions. Describe steps auditors use to plan and execute a test of details. b. Describe samples of risk and tests for audit objectives for accounts receivable. c. Explain what is meant by the term Monetary Unit Sampling. d. Describe the options auditors have in responding to sample results that indicate that auditee's balances are misstated.
1. A CPA has accepted an engagement in which inquiry and analytical procedures are the primary...
1. A CPA has accepted an engagement in which inquiry and analytical procedures are the primary procedures to be performed. These procedures will form the basis for issuance of: A) A compilation report B) Audit report on supplemental information issued by the client C) An agreed-upon procedures report D) Review report on financial statements for a nonpublic company 2. Auditors frequently use analytical procedures as substantive tests, but this is not required by auditing standards. A) True B) False 3....
13-26 (Objectives 13-1, 13-2, 13-5) The following are audit procedures from different transaction cycles: Examine sales...
13-26 (Objectives 13-1, 13-2, 13-5) The following are audit procedures from different transaction cycles: Examine sales invoices for evidence of internal verification of prices, quantities, and extensions. Select items from the client’s perpetual inventory records and examine the items in the company’s warehouse. Use audit software to foot and cross-foot the cash disbursements journal and trace the balance to the general ledger. Examine loan agreements for key information such as interest rate, payment schedules, collateral, and restrictive covenants to determine...
If an auditor’s risk assessment is based on the effective operations of controls, the auditor will...
If an auditor’s risk assessment is based on the effective operations of controls, the auditor will likely A. Perform tests of details of transactions and account balances to identify potential errors and fraud B. Identify specific internal controls that are likely to detect or prevent material misstatements C. Apply analytical procedures to both financial data and non financial information to detect conditions that may indicate weak controls. D. Document that the additional audit effort to perform tests of control exceeds...
These are more choices to choose from. John Josephs, an audit manager for Tip, Acanoe &...
These are more choices to
choose from.
John Josephs, an audit manager for Tip, Acanoe & Tylerto, was asked to speak at a dinner meeting of the local Small Business Administration Association. The president of the association has suggested that he talk about the various phases of the audit process to help small business owners better understand what auditors do. John has asked you, his trusted assistant, to prepare an outline for his speech. He suggests that you answer the...
1.To conclude that a management review control is effective, the auditor is required to identify a...
1.To conclude that a management review control is effective, the auditor is required to identify a selection of instances in which the control operated, evaluate whether management followed the procedures specified by the control, and properly evaluated and resolved exceptions. A) True B) False 2. Which of the following statements about substantive analytical procedures is correct? A) The results of the procedure provide evidence about the existence or absence of misstatement in an account. B) The results of the procedure...
On October 4, 2008, the PCAOB issued its annual inspection report of Grant Thornton LLP (PCAOB...
On October 4, 2008,
the PCAOB issued its annual inspection report of Grant Thornton LLP
(PCAOB Release No. 104-2008-046). In conducting its inspections,
the PCAOB focuses on audit engagements that it considers
particularly risky or prone to error.
In its inspection
report of Grant Thornton, the PCAOB noted the following problems in
testing the inventory valuation assertion for a Grant Thornton
client.
There was no evidence in the
audit documentation, and no persuasive other evidence, that the
firm had performed...
Requirement a. Identify the phase of the audit in which each activity occurs. Phase of Audit Set acceptable audit risk and decide preliminary judgment about materiality 1. and performance materiality Understand internal control and assess 2. control risk. I. Plan and Design an Audit Approach Perform substantive analytical 3. procedures for accounts payable. II. Perform Tests of Controls and Substantive Tests of Transactions JII. Perform Substantive Analytical Procedures and Tests of Details of Balances 4. Confirm accounts payable. IV. Complete...
These are more choices to
choose from.
John Josephs, an audit manager for Tip, Acanoe & Tylerto, was asked to speak at a dinner meeting of the local Small Business Administration Association. The president of the association has suggested that he talk about the various phases of the audit process to help small business owners better understand what auditors do. John has asked you, his trusted assistant, to prepare an outline for his speech. He suggests that you answer the...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 10 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 10 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 10 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 10 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 10 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 10 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 10 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 10 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 10 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 10 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 10 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 10 months ago