Question
In: Accounting
E) In respect of the following draft a memo to the audit partner setting out the...
E) In respect of the following draft a memo to the audit partner setting out the audit approach to be adopted:
i) Receivables
ii) Inventory
iii) Land and Buildings – current value for disclosure.
Solutions
ekkarill92 answered 2 years agoRelated Solutions
In respect of the following draft a memo to the audit partner setting out the audit...
In respect of the following draft a memo to the audit partner
setting out the audit approach to be adopted
i) Receivables
ii) Inventory
ii) Land and Buildings – current value for disclosure.
You have been asked by the audit partner to draft a letter to the client on...
You have been asked by the audit partner to draft a letter to
the client on internal control related matters. You were informed
that the written communication regarding significant deficiencies
and material weaknesses indentified during an audit of financial
statements should include certain statements.
For each of the significant deficiencies and material weaknesses
reflected in the table below, double-click on each of the
associated shaded cells and select from the list provided the
appropriate disposition of each statement in regard...
You are the audit partner in each of the following independent and material scenarios. The audit...
You are the audit partner in each of the following independent
and material scenarios.
The audit client’s financing arrangements are about to expire,
and the firm has not as yet been able to secure replacement
financing. If they are unsuccessful in arranging replacement
financing the client firm may have to consider filing for
bankruptcy. After evaluating the audit client’s situation, you
believe that the going concern assumption may no longer be
appropriate. You have advised the client that they should...
Internal Audit Question 1 The following information is extracted from a draft of an audit report...
Internal Audit
Question 1
The following information is extracted from a draft of an
audit report prepared upon the completion of an audit of the
inventory warehousing procedures for a division.
Findings
[#5]
We performed extensive tests of inventory record-keeping and
quantities on hand. Based on our tests, we have concluded that the
division carries a large quantity of excess inventory, particularly
in the area of component parts. We expect this is due to the
conservatism of local management that...
Draft a written memo to the client addressing the following research issues: Merrill Lynch contacts you...
Draft a written memo to the client addressing the following
research issues:
Merrill Lynch contacts you for guidance on this issue. Should
the revenue be reported in 2017 or 2018 for financial statement
reporting purposes? Why? Please site the specific guidance you
followed in response to your research question. The primary issue
you should research is whether an accrual basis securities firm has
gross income under sec. 451(a) on the trading date or the next year
on the settlement date...
You are the audit partner of the ABC audit firm, assigned to the audit of XYZ...
You are the audit partner of the ABC audit firm, assigned to the
audit of XYZ Ltd.
You issued an unmodified auditor's report for the year
ended 30 June 2020. In
December 2019, three employees of XYZ Ltd. were charged with
systematically and
deliberately entering fictitious transactions and embezzling
about $9 million.
ABC audit firm has been notified by the legal representatives of
XYZ Ltd. that they
are taking legal action against your firm based on the audit for
the...
For each of the following audit procedures, identify the audit objective, a – e, that the...
For each of the following audit procedures, identify the audit
objective, a – e, that the procedure will be most likely to
achieve. The audit objective may be used once, more than once, or
not at all. While a procedure may meet more than one audit
objective, you need only identify one audit objective per
procedure.
Existence or Occurrence.
Rights or Obligation.
Valuation.
Cutoff
Completeness.
Presentation.
Trace a sample of shipping documents to recorded sales
transactions.
Send standard bank confirmation...
For the following independent situations, assume that you are the audit partner on the engagement: 1....
For the following independent situations, assume that you are
the audit partner on the engagement:
1. You found that the depreciation is calculated on the total of
land and buildings. In previous years it was only charged on
buildings. Total depreciation is $5m and the element charged to
land only is $1.4m. Profit before tax is $20m.
2. Fortune Co has 20% inventory held by Just Department Store on
a consignment basis. Confirmation request has been already sent to
them...
For the following independent situations, assume that you are the audit partner on the engagement: 1....
For the following independent situations, assume that you are
the audit partner on the engagement: 1. A number of frozen yogurt
stores have opened in the last few years and your client,
YogurtLand, has experienced a noticeable decline in customer
traffic over the past several months that has caused you to have
substantial doubt about YogurtLand’s ability to continue as a going
concern. 2. Intelligis Electronics is a manufacturer of advanced
electrical components. During the year, changes in the market...
For the following independent situations, assume that you are the audit partner on the engagement: 1....
For the following independent situations, assume that you are
the audit partner on the engagement: 1. A number of frozen yogurt
stores have opened in the last few years and your client,
YogurtLand, has experienced a noticeable decline in customer
traffic over the past several months that has caused you to have
substantial doubt about YogurtLand’s ability to continue as a going
concern. 2. Intelligis Electronics is a manufacturer of advanced
electrical components. During the year, changes in the market...
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