The Check Clearing for the 21st Century Act (Check 21 Act) allows recipients of paper checks to create a digital image of the original check, eliminating the need for further handling of the actual check. The Federal Reserve Board has created a consumer guide, Consumer Guide to Check 21 and Substitute Checks, which can be […]
The following audit procedures are concerned with tests of details of general cash and financial instruments balances: 1. Obtain a standard bank confirmation from each bank with which the client does business. 2. Compare the balance on the bank reconciliation obtained from the client with the bank confirmation. 3. Trace deposits in transit on the […]
Law E-commerce 402 QUESTION 2 What can we do to minimize the potential for cybercrime of phishing emails in our company? O 2. We can train our employees on the likely characteristics of phishing emails so they can recognize them and O 1. We can depend entirely on our spam filters to eliminate all phishing […]
Write your arguments in standard form. What are the premises of your argument? There should be at least one normative statement and at least one descriptive statement, but ideally there will be 5-7 premises. If any of your premises make factual statements that are not common knowledge and widely accepted, include a source supporting your […]
In your audit of Aviary Industries for calendar year 2019, you found a number of matters that you believe represent possible adjustments to the company’s books. These matters are described below. Management’s attitude is that “once the books are closed, they’re closed,” and management does not want to make any adjustments. Planning materiality for the […]
The following questions deal with contingent liabilities and the review for subsequent events. Choose the best response. a. When a contingency is resolved subsequent to the issuance of audited financial statements, which correctly contained disclosure of the contingency in the footnotes based on information available at the date of issuance, the auditor should (1) inform […]
As a part of the audit of Ren Gold Manufacturing Company, a nonpublic company, management requests basic financial statements and separately, the same basic financial statements accompanied by additional information. Management informs you that the intent is to use the basic financial statements for bankers, other creditors, and the two owners who are not involved […]
In analyzing legal expense for the Boastman Bottle Company, Mary Little, CPA, observes that the company has paid legal fees to three different law firms during the current year. In accordance with her CPA firm’s normal operating practice, Little re- quests standard attorney letters as of the balance sheet date from each of the three […]
McNeil Company, a medium-sized manufacturer of microwave ovens, has been an audit client for the past five years. McNeil Co. has been steadily growing and recently hired a new CEO, who has decided to increase the level of investments in financial instruments as a way of generating a profit from excess cash from operations. The […]
The following questions deal with discovering fraud in auditing year-end cash. Choose the best response. a. Which of the following cash transfers results in a misstatement of cash at December 31, 2019? BANK TRANSFER SCHEDULE Disbursements Receipt Transfer Recorded in Books Paid by Bank Recorded in Books Received by Bank (1) 12/31/19 1/4/20 12/31/19 12/31/19 […]
