7-27. As auditor of the Star Manufacturing Company, you have noticed the following accounts on the...

7-27. As auditor of the Star Manufacturing Company, you have noticed the following accounts on the trial balance taken from the books of Star one month before year-end:

Account Name	From Whom Confirm?	Information to Confirm
Cash in bank
Trade accounts receivable
Notes receivable
Inventories
Land
Buildings, net
Furniture, fixtures, and equipment, net
Trade accounts payable
Mortgages payable
Capital stock
Retained earnings
Sales
Cost of sales
General and administrative expenses
Legal and professional fees
Interest expense

Expert Solution

ekkarill92 answered 2 years ago

You are the auditor of Winter Valley. You have noticed that the town is recording all...

You are the auditor of Winter Valley. You have noticed that the town is recording all of their transactions in the General Fund. The town has not established additional funds although they have the following transactions. They are constructing a new city hall They have a town operated skating rink for which they charge an entrance fee. They have $2,000,000 in an employee pension plan. They are paying interest and principal on Winter Haven Municipal Bond They have unclaimed funds...

I. You are the Auditor for Winter Valley. You have noticed that the town is recording...

I. You are the Auditor for Winter Valley. You have noticed that the town is recording all transactions in the General Fund. The town has not established any other funds although they have the following activities: ● They are constructing a new City Hall ● They are paying interest and principal on Winter Haven Municipal bonds ● The have established a $3,000,000 endowment fund to fund the maintenance of the town library into perpetuity. ● They have passed a gasoline...

You are the auditor for a company and need to review the company’s accounts receivable using...

You are the auditor for a company and need to review the company’s accounts receivable using probability proportional to size (PPS) sampling. In addition, the board of directors has requested that you and your team present an explanation of your PPS process at its next monthly meeting. -The recorded book value of these accounts is $3,460,000. -The company has a tolerable error of $63,460. -The anticipated error is $13,000. -The risk of incorrect acceptance is 5%. -The acceptable number of...

As an auditor of manufacturing company in KSA, explain what the auditor should do during the...

As an auditor of manufacturing company in KSA, explain what the auditor should do during the observation of the physical inventory count.

Assuming you have been working with one of the Big4 as auditor for more than 7...

Assuming you have been working with one of the Big4 as auditor for more than 7 years, Mr. Alex Chan is your close friend and he is the son of Mr. Derek Chan, the founder of Apple Ltd., a listed company with very successful track record. Derek and Alex are the chairman and vice chairman of the company respectively. As you are familiar with Alex and his family, you learn that most of the senior management are from the same...

You are the financial accountant of Réka Ltd, a manufacturing company. The following accounts were extracted...

You are the financial accountant of Réka Ltd, a manufacturing company. The following accounts were extracted from its trial balance as at 30 June 2020: Debit Credit $ $ Cash at bank 12,000 Cash in hand 123,000 Accounts receivable 134,500 Rent receivable 5,500 Inventory 200,460 Raw materials 58,000 Prepaid management fees 12,800 Investment property 350,000 Loan receivable 56,000 Land (at cost) 560,000 Plant and equipment (at cost) 562,300 Accumulated depreciation – plant and equipment 224,920 Patents 59,200 Accounts payable 63,500...

Assume you were the auditor for a company which asserted it had Accounts Receivable and Cash....

Assume you were the auditor for a company which asserted it had Accounts Receivable and Cash. What sort of audit evidence would you want and from where?

For this discussion you will address the following questions: What clinical problems have you noticed in...

For this discussion you will address the following questions: What clinical problems have you noticed in nursing practice (you can discuss the one you selected for the assignment, in addition to any others you have found)? Have you been able to address them? Were these efforts successful? What changes were made to address these issues (if any)? What new questions arose after the changes were made? Did these lead to any further research or changes in practice (think of the...

1) You have been approached by Lakeside Company to be their auditor. They have fired the...

1) You have been approached by Lakeside Company to be their auditor. They have fired the previous audit firm and are now looking for a new firm. Please answer the following questions concerning this potential engagement. a. What are the issues to consider in making this decision? b. Based on your answer in a) above; What is the most important consideration for your firm in making this decision? Why? c. What are the risks that Lakeside, the potential client, faces...

The sales manager of a potato chip manufacturing company ltd noticed that the sales of a...

The sales manager of a potato chip manufacturing company ltd noticed that the sales of a winning brand have been declining two months in a row. He interpreted the problem as ‘ineffective advertising’. He instructed the marketing researcher to investigate the efficiency of the advertising campaign. The researcher conducted an exploratory research and discovered that the retailer support had declined because of new competitive quality products which provided higher value and profit margins on sales. Retailers are therefore making more...

Question