1. Develop a business that offers a product or service to your selected audience. 2. Conduct an analysis of your audience. 3. Prepare a technical document (or video) that advertises your product or service to your audience.
Chen, CPA, is auditing the financial statements of a manufacturing company with a significant amount of trade accounts receivable. Chen is satisfied that the accounts are correctly summarized and classified and that allocations, reclassifications, and valuations are made in accordance with GAAP. Chen is planning to use accounts receivable confirmation requests to obtain sufficient appropriate […]
The following are audit procedures in the sales and collection cycle: 1. Foot the aged trial balance using audit software and compare the total with the general ledger. 2. Match sales invoices with subsequent cash receipts using audit software. 3. Examine a sample of customer orders and see whether each has a credit authorization. 4. […]
Makoto Auto Parts sells new parts for foreign automobiles to auto dealers. Company policy requires that a prenumbered shipping document be issued for each sale. At the time of pickup or shipment, the shipping clerk records the date on the shipping document. The last shipment made in the fiscal year ended August 31, 2019, was […]
Test of Details of Balances,Test of Control, or Substantive Test of Transactions Audit Procedure 1. Confirm accounts receivable ending balances and sales terms, such as right of return and consignment arrangements. 2. Review sales returns after the balance sheet date to determine whether any are ap- plicable to the current year. 3. Compare dates on […]
Consider a healthcare organization in Saudi Arabia and assume they have a debt-to-equity ratio of 1.3. Address the following requirements: Is this good performance on this ratio? Discuss which actions would improve this ratio. Discuss some of the problems encountered when performing financial statements and operating indicator analysis. Embed course material concepts, principles, and theories […]
With advances in technology, an increasing number of data analysis techniques are being used on audit engagements to increase both efficiency and effectiveness. In an article titled “Introduction to Data Analysis for Auditors and Accountants,” published in the CPA Journal , authors Kogan, Vasarhelyi, and Appelbaum describe how technology-driven data analysis can be used in […]
You are responsible for designing the audit of notes receivable for Hickory Appliance Retailers, which sells appliances and electronics to consumers for their homes or small businesses. Hickory Appliance has eight store locations in different cities located in the upper Midwestern part of the United States. One of Hickory’s unique competitive advantages has been its […]
The following are common tests of details of balances or substantive analytical procedures for the audit of accounts receivable: 1. Select 20 customer accounts from the accounts receivable master file and trace to the aged accounts receivable listing to verify name and amount. 2. Select 20 customer accounts from the aged accounts receivable listing and […]
The following questions concern auditor responsibilities related to the audit of accounts receivable. Choose the best response. a. The auditor sends out positive accounts receivable confirmations for a client. Assuming a second confirmation is sent out to a major customer who still fails to respond, which action should the auditor take? (1) Consider the nonresponse […]
