The table below is an excerpt from Apple Inc.’s Statement of Shareholders’ Equity for its fiscal year ended September 30, 2017: CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY Common Stock and Additional Paid-In Capital Retained Earnings Accumulated Other Comprehensive Income/(Loss) Total Shareholders’ EquityShares Amount Balance as of September 24, 2016 5,336,166 $31,251 $96,364 $634 $128,249 Net income […]
Explain the relationship between the acquisition and payment cycle and the inventory and warehousing cycle in the audit of a manufacturing company. List several audit procedures in the acquisition and payment cycle that support your explanation. 21-2 (OBJECTIVE 21-3) Many auditors assert that certain audit tests can be significantly reduced for clients with adequate perpetual […]
SUBSEQUENT DISCOVERY OF FACTS Identify the auditor’s responsibilities when facts affecting the audit report are discov-ered after its issuance.
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 […]
In an annual audit at December 31, 2019, you find the following transactions near the closing date: 1. Merchandise costing $625 was received on December 28, 2019, and the invoice was not recorded. You located it in the hands of the purchasing agent; it was marked “on consignment.” 2. A packing case containing products costing […]
You are responsible for the audit of inventory for Honey Best Grocery Wholesale, Inc., a closely held grocery wholesaler that sells to independent grocery stores. Inventory is by far the largest account on their balance sheet. Honey Best operates in 10 southeastern states with a central distribution center in Atlanta and local distribution centers in […]
The ending general ledger balance of $568,000 in notes payable for the Kolman Production Company is made up of 20 notes to nine different payees. The notes vary in duration anywhere from 30 days to two years, and in amounts from $10,000 to $50,000. In some cases, the notes were issued for cash loans; in […]
AUDIT OF THE CAPITAL ACQUISITION AND REPAYMENT CYCLE Identify the accounts and the unique characteristics of the capital acquisition andrepayment cycle.Design and perform audit tests of notes payable and relatedaccounts and transactions. Identify the primary concerns in the audit of owners’ equity transactions.Design and perform tests of controls, substantive tests of transactions, and tests ofdetails […]
Following are audit procedures commonly performed in the inventory and warehousing cycle for a manufacturing company: 1. Account for a sequence of raw material requisitions and examine each requisition for an authorized approval. 2. Trace the recorded additions on the finished goods perpetual inventory master file to the records for completed production. 3. Compare the […]
Below are four independent client scenarios: 1. Food Giant is a regional grocery store chain located in the Pacific Northwest. Rather than operate a company-owned distribution center, Food Giant uses five different in- dependent storage warehouse companies across the region to store most of its gro- cery inventory before shipping to the individual stores. Typically, […]
