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Tag: Accounting

Suppose you are an auditor who has been tasked with looking into the internal controls at a company. How can you evaluate the company’s internal controls to see if they are sufficient?

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Assignment Question(s): Q1. Suppose you are an auditor who has been tasked with looking into the internal controls at a company. How can you evaluate the company’s internal controls to see if they are sufficient? Q2. Why do companies use the allowance method to account for bad debts? Describe the diverse methods used to estimate […]

Obtain and print statistical information for Invoice Amount. What is the total amount of invoices generated during the year? Do any invoices have a negative value?

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TASK This problem requires the use of ACL software, which can be accessed through the textbook website. Information about downloading and using ACL and the commands used in this problem can also be found on the textbook web- site. You should read all of the reference material preceding the instructions about “Quick Sort” before locating […]

How do you, as the auditor, know that all minutes have been made available to you?

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ASSIGNMENT The minutes of the board of directors of the Tetonic Metals Company for the year ended December 31, 2019, were provided to you. Meeting of March 5, 2019The meeting of the board of directors of Tetonic Metals was called to order byJames Cook, the chairman of the board, at 8:30 a.m. The following directors […]

Which of the preceding transactions would most likely be considered a related party transaction?

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DISCUSSION QUESTIONS The following are various activities an auditor does during audit planning. 1. Review accounting principles unique to the client’s industry2. Determine the likely users of the financial statements3. Evaluate the appropriate financial statement measures for determining amountslikely to be considered material by users of the financial statements4. Identify whether any specialists are required […]

What are the responsibilities of the successor and predecessor auditors when a company is changing auditors?

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QUESTIONS What are the benefits derived from planning audits? What are the responsibilities of the successor and predecessor auditors when a company is changing auditors? What is the purpose of an engagement letter? What subjects should be covered in such a letter? Who is considered the client when auditing public companies? Explain why auditors need […]

Distinguish between the terms performance materiality and preliminary judgment about materiality. How are they related to each other?

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TASK 1. What is meant by setting a preliminary judgment about materiality? Identify the mostimportant factors affecting the preliminary judgment.2. Distinguish between the terms performance materiality and preliminary judgment aboutmateriality. How are they related to each other?3. Explain the difference between known and likely misstatements. Assume the auditortests a sample of $100,000 of inventory and […]

Prepare an improved audit schedule, using an electronic spreadsheet software pro- gram. Include an indication of the audit work done as well as the analysis of the client option)

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ASSIGNMENT You are the in-charge auditor on the audit of Vandervoort Company and are to review the audit schedule shown on the next page. a. List the deficiencies in the audit schedule. b. For each deficiency, state how the audit schedule could be improved. c. Prepare an improved audit schedule, using an electronic spreadsheet software […]

Recalculate net pay for each payroll transaction for all pay periods and compare it to the amount included in the file.

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ASSIGNMENT Analytical procedures are an important part of the audit process and consist of the evaluation of financial information by the study of plausible relationships among financial and nonfinancial data. Analytical procedures may be done during planning, as a substantive test, or as a part of the overall review of an audit. The following are […]

Assume that he is convicted or pleads guilty to these crimes . Would your answer be different ?

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TASK Answer the following questions using your own words… According to police reports, a Gainesville, Florida, CPA was arrested for engaging in sexual assault. This story generated substantial publicity , especially in northern Florida . Despite the heinous nature of these crimes, there is no evidence whatsoever that the tax accounting services performed by him […]

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