What is the best evidence to audit the following? 1- Inventory 2- Accounts Receivable 3- Depreciation...
What is the best evidence to audit the following?
1- Inventory
2- Accounts Receivable
3- Depreciation expense
4- Contingent liabilities
5- Collectibles
Homework Answers
Best evidences to audit the following;
1. Inventory - physical verification is the best evidence since it confirm the Existance of the inventory and condition of the inventory.
2. Accounts receivables - obtaining direct balance confirmations from the customers
3. Depreciation expenses - Re calculation of depreciation based on the fixed asset register
4. Contingent liability - obtaining third party expert opinion on the possibility of the amount.
5. Collectibles - physical verification of items
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What is the best evidence to audit the following?
1- Inventory
2- Accounts Receivable
3- Depreciation...
1. Auditors often follow a "cycle" approach to the gathering of evidence. Of the following accounts,...
1. Auditors often follow a "cycle" approach to the gathering of evidence. Of the following accounts, which typically would NOT be part of the sales cycle? a. Accounts receivable b. Allowance for doubtful accounts c. Inventory d. Sales returns and allowances e. None of the above 2. The assertion COMPLETENESS involves a. Overstatement. b. Ownership. c. Professional Skepticism. d. Understatement. 3. To be appropriate, evidence should be relevant and reliable. Under...
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Assets Cash Accounts receivable Allowance for doubtful accounts Inventory Equipment Accumulated depreciation-equipment Blossom Company Balance Sheet...
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Kindly, provide short answers. Thank you. Class Discussion Exercise- Accounts Receivable Audit Objectives and Procedures for...
Kindly, provide short answers.
Thank you.
Class Discussion Exercise- Accounts Receivable Audit Objectives and Procedures for Accounts Receivable. In the audit of accounts receivable, auditors develop specific audit assertions related to the receivables. They then design specific substantive procedures to obtain evidence about each of these assertions, Here is a selection of accounts receivable assertions: Accounts receivable represent all amounts owed to the client company at the balance sheet date. b. a. The client company has a legal right to...
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Need help with e and f Both are ending inventory and COGS Cash Accounts Receivable Inventory...
Need help with e and f
Both are ending inventory and COGS
Cash Accounts Receivable Inventory Equipment Debit $4,500 4,800 2,400* 24,000 $35,700 Accumulated Depreciation-Equipment Accounts Payable Owner's Capital Credit $1,100 3,200 31,400 $35,700 *(4,000 x $0.60) The following transactions occurred during December: Dec. 3 Purchased 4,000 units of inventory on account at a cost of $0.74 per unit. 5 Sold 4,300 units of inventory on account for $0.90 per unit. (Bonita sold 4,000 of the $0.60 units and 300...
Audit of which of the following accounts most likely to reveal evidence relating to recorded retirements...
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For each of the following specific audit procedures, indicate the type of audit evidence it is...
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A How long must Inventory and Accounts Receivable be financed given the following data? 1 2...
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Assets Cash Accounts receivable Allowance for doubtful accounts Inventory Equipment Accumulated depreciation-equipment Blossom Company Balance Sheet May 31, 2020 Liabilities and Owners' Equity $29,900 Notes payable $13,500 24,000 Accounts payable 27,500 (1,400) Salaries and wages payable 3,900 34,100 A. Jamison, capital 32.500 20,200 S. Moyer, capital 20,950 (5,900 P. Roper, capital 2,550 $100,900 $100,900 The partners share income and loss 5:3:2. During the process of liquidation, the following transactions were completed in the following sequence. 1. 2. 3. 4. A...
Kindly, provide short answers.
Thank you.
Class Discussion Exercise- Accounts Receivable Audit Objectives and Procedures for Accounts Receivable. In the audit of accounts receivable, auditors develop specific audit assertions related to the receivables. They then design specific substantive procedures to obtain evidence about each of these assertions, Here is a selection of accounts receivable assertions: Accounts receivable represent all amounts owed to the client company at the balance sheet date. b. a. The client company has a legal right to...
Need help with e and f
Both are ending inventory and COGS
Cash Accounts Receivable Inventory Equipment Debit $4,500 4,800 2,400* 24,000 $35,700 Accumulated Depreciation-Equipment Accounts Payable Owner's Capital Credit $1,100 3,200 31,400 $35,700 *(4,000 x $0.60) The following transactions occurred during December: Dec. 3 Purchased 4,000 units of inventory on account at a cost of $0.74 per unit. 5 Sold 4,300 units of inventory on account for $0.90 per unit. (Bonita sold 4,000 of the $0.60 units and 300...
A How long must Inventory and Accounts Receivable be financed given the following data? 1 2 Item 3 Inventory 4 Accounts Receivable 5 Accounts Payable 6 Net Sales 7 Cost of Goods Sold Beginning $2,000,000 $1,600,000 $750,000 $11,500,000 $8,200,000 Ending $3,000,000 $2,000,000 $1,000,000
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