Business Analysis Archives - Page 5 of 8

Examine supporting documents for cash disbursements after year end to determine whether they should be included in the year-end list of accounts payable.

Posted on February 15, 2023 by Assessments

The following are various audit procedures per- formed in the audit of the acquisition and payment cycle and accounts payable: 1. Foot the acquisitions journal for the month of August and trace postings to general ledger and accounts payable master file. 2. Determine that the amount of purchases from major customers is properly disclosed in […]

Evaluate the results of the nonstatistical sample. Consider both the direct implications of the misstatements found and the effect of using a sample.

Posted on February 12, 2023 by Assessments

You have just completed the accounts receivable confirmation process in the audit of Danforth Paper Company, a paper supplier to retail shops and commercial users. Following are the data related to this process: Accounts receivable recorded balance $ 2,760,000 Number of accounts 7,320 A nonstatistical sample was taken as follows: All accounts over $10,000 (23 […]

Differentiate audit sampling for tests of details of balances and for tests of controls and substantive tests of transactions.

Posted on February 12, 2023 by Assessments

AUDIT SAMPLING FOR TESTS OF DETAILS OF BALANCES Differentiate audit sampling for tests of details of balances and for tests of controlsand substantive tests of transactions.Apply nonstatistical sampling to tests of details of balances.Apply monetary unit sampling.Describe variables sampling.Use difference estimation in tests of details of balances

Identify and describe the two primary forms of accounts receivable confirmation re- quests and indicate what factors Chen will consider in determining when to use each.

Posted on February 12, 2023 by Assessments

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 […]

Which notes receivable balance-related audit objective(s) might have a high risk of material misstatement?

Posted on February 12, 2023 by Assessments

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 […]

As an alternative to using a random number generator, an auditor can use systematic sampling to select an unbiased sample. Using systematic sampling, select the first five sample items for populations (1) through (3) from part a., using the random starting points shown. Recall that the sample size is 75 in each case.

Posted on February 11, 2023 by Assessments

As a staff auditor, you need to develop a sampling plan and select an unbiased random sample for each of the three independent scenarios listed below. The in-charge on the audit engagement has instructed you to use the Excel RANDBETWEEN function to select the sample items. For each scenario, develop a sampling plan that includes […]

List the transaction-related audit objectives for the audit of sales transactions. For each objective, state one internal control that the client can use to reduce the likelihood of misstatements.

Posted on February 11, 2023 by Assessments

Design and Performance Format Audit Procedures 1. What three types of authorizations are commonly used as internal controls for sales? Explain the importance of each. 2. List the transaction-related audit objectives for the audit of sales transactions. For each objective, state one internal control that the client can use to reduce the likelihood of misstatements.

What suggestions do you have for changing the process to reduce the future potential for fraud?

Posted on February 10, 2023 by Assessments

Appliances Repair and Service Company bills all customers rather than collecting in cash when services are provided. All mail is opened by Tom Gyders, treasurer. Gyders, a CPA, is the most qualified person in the company who is in the office daily. Therefore, he can solve problems and respond to customers’ needs quickly. Required Required […]

Which of the following is not a provision of the Sarbanes–Oxley Act of 2002?

Posted on February 10, 2023 by Assessments

The following questions concern auditor professional responsibilities. Choose the best response. a. The concept of materiality would be least important to an auditor when considering the (1) adequacy of disclosure of a client’s illegal act. (2) effects of a direct financial interest in the client on the CPA’s independence. (3) discovery of weaknesses in a […]

For the largest 10 firms listed in the table, how many firms generate the largest per- centage of their revenue from consulting? Discuss why some firms may have larger consulting practices than other firms.

Posted on February 9, 2023 by Assessments

Review the information in Table 2-1 on page 25 and discuss the following: a. For the largest 10 firms listed in the table, how many firms generate the largest per- centage of their revenue from consulting? Discuss why some firms may have larger consulting practices than other firms. b. In recent years, consulting has been […]

Essay Quoll

Category: Business Analysis

Examine supporting documents for cash disbursements after year end to determine whether they should be included in the year-end list of accounts payable.

Evaluate the results of the nonstatistical sample. Consider both the direct implications of the misstatements found and the effect of using a sample.

Differentiate audit sampling for tests of details of balances and for tests of controls and substantive tests of transactions.

Identify and describe the two primary forms of accounts receivable confirmation re- quests and indicate what factors Chen will consider in determining when to use each.

Which notes receivable balance-related audit objective(s) might have a high risk of material misstatement?

List the transaction-related audit objectives for the audit of sales transactions. For each objective, state one internal control that the client can use to reduce the likelihood of misstatements.

What suggestions do you have for changing the process to reduce the future potential for fraud?

Which of the following is not a provision of the Sarbanes–Oxley Act of 2002?

For the largest 10 firms listed in the table, how many firms generate the largest per- centage of their revenue from consulting? Discuss why some firms may have larger consulting practices than other firms.