Identify the accounts and the classes of transactions in the sales and collection cycle.
ACCOUNTS AND CLASSES OF TRANSACTIONS IN THE SALES AND COLLECTION CYCLE Identify the accounts and the classes of transactions in the sales and collection cycle.
Tag: transactions
Why is it desirable to design tests of details of balances before performing tests of controls and substantive tests of transactions? State the assumptions that the auditor must make in doing so. What does the auditor do if the assumptions are wrong?
For each of the eight types of evidence discussed in Chapter 7, identify whether it is applicable for risk assessment procedures, tests of controls, substantive tests of transactions, substantive analytical procedures, and tests of details of balances. 13-11 (OBJECTIVE 13-2) Rank the following types of tests from most costly to least costly: substantive analytical procedures, […]
Explain the relationship of performance materiality, inherent risk, and control risk to planned tests of details of balances.
1. State the four-step approach to designing tests of controls and substantive tests of transactions. 2. Explain the relationship of performance materiality, inherent risk, and control risk to planned tests of details of balances.
Identify key controls that should reduce control risk for each transaction-related audit objective.
Audit Procedures: When designing tests of controls and substantive tests of transactions, auditors emphasize satisfying the transaction-related audit objectives developed in Chapter 6. Auditors follow a four-step approach to reduce assessed control risk: 1. Apply the transaction-related audit objectives to the class of transactions being tested, such as sales. 2. Identify key controls that should […]
What financial statement implications, if any, would each of the above transactions have for Canyon Outdoor?
In your audit of Canyon Outdoor Provision Company’s financial statements, the following transactions came to your attention: 1. Canyon Outdoor’s operating lease for its main store is with MTS Properties, which is a real estate investment firm owned by Andrei Mikhailov. Mr. Mikhailov is a member of Canyon Outdoor’s board of directors. 2. One of […]
Use your research skills, google, and chapter 3 of your online textbook to answer the following question. What do the terms debit and credit mean in accounting? What is your opinion?
Analyzing and Recording Transactions 1. Why do we have accounting rules? What is your opinion? 2. Use your research skills, google, and chapter 3 of your online textbook to answer the following question. What do the terms debit and credit mean in accounting? What is your opinion? 3. What is a journal in accounting? What […]
If a client of yours does not wish to report information on their tax return that you feel should be reported, how would you handle the situation?
Tax preparers often have a difference of opinion with their clients as to how some transactions should be treated on a tax return. If a client of yours does not wish to report information on their tax return that you feel should be reported, how would you handle the situation?
Prepare new financial statements provide a balance sheet and income statement from the new balances.
Using the Balance Sheet and Income Statement above, answer the following questions: 1. Create a trial Balance. 2. On June 30, 2018, the following transactions occurred. Prepare Journal Entries for each one. Note that the chart of account is condensed! So you will have to decide which provided account is appropriate. Provide the journal entries […]
Discuss at least two different methods of depreciation. Consider how the methods of depreciation will be determined. Discuss how LIFO, FIFO, and average methods will differ and provide examples of types of applicable merchandising.
Fill out the spreadsheet Scenario You were recently hired as an entry-level bookkeeper for a service business that recently opened. This is the first month in operation for the business and your first task is to record business transactions for their first month using the source documents and transaction data the owner will provide to […]
What is the gain or loss on the disposed asset and whether gains or losses taken into consideration when determining tax base?
Q1. Explain the tax treatment for the following transactions under article (9) of the income tax law : Tax payer has personal asset valued at SAR 100,000 a cost base of SAR 80,000. Earning gains of SAR 20,000. What is the gain or loss on the disposed asset? .Tax payer has an asset of two […]