Question
In: Accounting
Your client, FNP Ltd, engaged the services of Z and Co., a firm of real estate...
Your client, FNP Ltd, engaged the services of Z and Co., a firm of real estate valuers, to perform a valuation of all real estate held by the company. As a result of this revaluation, property values on the balance sheet were significantly increased, leading to material increase in net assets backing per share.
Require;
Describe the audit procedures that would be required with respect to the valuations performed by Z and Co.
Assume that you are not satisfied with the results of procedures performed. Explain what alternative procedures could be performed.
Solutions
Expert Solution
Audit procedure performed by auditor to consider the work of management's expert.
- Auditor shall evaluate competence,objectivity,capability of expert.
- Auditor shall consider nature,timing,extent of audit procedures.
- Auditor shall examine source of finding or conclusion made by expert.
- Assess the reliability of work performed by expert.
- Obtain evidence for evaluating completeness and accuracy of the information.
In case auditor is not satisfied ,there is inconsistency between audit evidence , Auditor can
- obtain management representation letter
- Get work performed by his expert.
- Express opinion as modified or qualified.
ekkarill92 answered 2 years agoRelated Solutions
You are a real estate agent thinking of placing a sign advertising your services at a...
You are a real estate agent thinking of placing a sign
advertising your services at a local bus stop. The sign will
cost
$5,500
and will be posted for one year. You expect that it will
generate additional revenue of
$715
a month. What is the payback period?
You are a real estate agent thinking of placing a sign advertising your services at a...
You are a real estate agent thinking of placing a sign
advertising your services at a local bus stop. The sign will cost
$4,000 and will be posted for one year. You expect that it will
generate additional revenue of $760 a month. What is the payback
period?
The payback period is _______months. (Round to one decimal
place.)
You are a real estate agent thinking of placing a sign advertising your services at a...
You are a real estate agent thinking of placing a sign
advertising your services at a local bus stop. The sign will cost
$10,000 and will be posted for one year. You expect it will
generate additional revenue of $1500 per month.
a. What is the payback period?
b. What is the discounted payback period if the
discount rate is 1% per month?
1. The oce manager at a real estate firm makes a pot of co↵ee every morning....
1. The oce manager at a real estate firm makes a pot of co↵ee
every morning. The time before it runs out, y, in hours, depends on
the number of persons x, working in the oce on that day. Suppose
that the pairs of (x, y) values from n = 6 days are given in table
below. Number of people, x 1 2 3 3 4 5 Time before co↵ee runs out,
y 8 4 5 3 3 1 (a)...
Gulf Real Estate Properties, Inc., is a real estate firm in southwest Florida. The company monitors...
Gulf Real Estate Properties, Inc., is a real estate firm in
southwest Florida. The company monitors condominium sales by
collecting data on location, list price, sale price, and the number
of days it takes to sell each unit. Each condo is classified as
Gulf View if it is located directly on the Gulf of Mexico or No
Gulf View if it is located on the bay or a golf course. The data
set contains sales data for 40 Gulf View...
John Trident was a real estate agent working for Quantum Real Estate Ltd. His sister-in-law Jennie...
John Trident was a real estate agent working for Quantum Real
Estate Ltd. His sister-in-law Jennie was looking for some income
property, and after some searching John Trident entered into a deal
with Mr. and Mrs. Lipton, persuading them to list their property
for sale with him and subsequently presented an offer to purchase
from his sister-in-law, who used her maiden name (P. Hayes) so that
the sellers would not know that he was related to the purchaser.
Before the...
Heraklion Co is a manufacturer of footballs and is a new audit client for your firm....
Heraklion Co is a manufacturer of
footballs and is a new audit client for your firm. You are an audit
supervisor of Spinalonga & Co. and are currently preparing for
the forthcoming interim and final audit for the year ending 31
October 2016. You are required to document and assess the sales
system, recommend control improvements to deal with a specific
fraud issue as well as undertake substantive testing of
revenue.
Sales ordering, goods dispatched and
invoicing
Heraklion Co sells...
A Mutual Fund Company (“the Company”) has engaged your firm to conduct their internal audit services....
A Mutual Fund Company (“the Company”) has engaged your firm to
conduct their internal audit services. All of the employees of the
company are skilled investment managers and administrators. They
are also very well paid compared to others in the industry. Upon
reviewing the documents you found out that the CEO of the Company
had formed a company which offered similar business products and
services but had been fined by the Securities Commission for
failure to file its statutory returns...
The Case: A general contracting company engaged in the construction of real estate has several branches...
The Case:
A general contracting company engaged in the construction of
real estate has several branches
throughout the Kingdom and a headquarters in Al-Qassim.
The company different branches are independent from each other
and they have similar administrative structure, activity and
infrastructure. Each branch has its own departments (finance,
accounting, human resources, warehouse management, marketing, sales
and operations management). The departments are related to the
headquarters in Al-Qassim to whom they are presenting monthly
reports.
As for the information technology,...
Naa Tetterley Company Ltd engaged your firm to prepare a Cash Budget for them. They informed...
Naa Tetterley Company Ltd engaged your firm to prepare
a Cash Budget for them. They informed you that:
a. They have two bills payable of $55,000 and $60,000 with due
dates of 31st July and 30th September, 2020 respectively.
These bills will be paid on their due dates
b. The Company wishes to arrange with its bankers for any necessary
re-financing in advance, which will ensure a minimum end of month
cash balance of $25,000
You are also given the...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- THIS PROGRAM HAS TO BE WRITTEN IN C Single function to perform the parity computation on...
- Consider a buffer system consisting of Benzoic acid (pKa = 4.20) and sodium benzoate, a) Would...
- Decision Variables S T Minimize 1.8S + 2.20T Subject to: Potassium 5S + 8T >= 200...
- A neurologist needs to counsel a stroke victim and her husband about possible outcomes, treatment options,...
- Case Study: Personal Beliefs in the Workplace Don Shakow was a prominent professional who worked in...
- 1: Competency framework usage is the modern best practice in management. What is meant by competency...
- A 19.34 g mixture of sugar (C12H22O11) and table salt (NaCl) is dissolved in 231 g...
ADVERTISEMENT