Questions from Auditing and Assurance

Q: The following are various asset misappropriations involving the payroll and personnel cycle

The following are various asset misappropriations involving the payroll and personnel cycle. 1. The payroll clerk submitted payroll information for a fictitious employee and had the funds directly dep...

Q: Archer Uniforms, Inc., is a distributor of professional uniforms to

Archer Uniforms, Inc., is a distributor of professional uniforms to retail stores that sell work clothing to professionals, such as doctors, nurses, security guards, etc. Traditionally, most of the sa...

Q: During the first-year audit of Jones Wholesale Stationery, you

During the first-year audit of Jones Wholesale Stationery, you observe that commission’s amount to almost 25 percent of total sales, which is somewhat higher than in previous years. Further investigat...

Q: Since 1938, when auditors failed to uncover fictitious inventory recorded by

Since 1938, when auditors failed to uncover fictitious inventory recorded by the McKesson & Robbins Company, auditors have been ordinarily required to physically observe the counting of inventory. It...

Q: You are assigned to the December 31, 2011, audit of

You are assigned to the December 31, 2011, audit of Sea Gull Airframes, Inc. The company designs and manufactures aircraft superstructures and airframe components. You observed the physical inventory...

Q: Give the reasons why inventory is often the most difficult and time

Give the reasons why inventory is often the most difficult and time consuming part of many audits.

Q: Explain the relationship between the acquisition and payment cycle and the inventory

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...

Q: It is common practice to audit the balance in notes payable in

It is common practice to audit the balance in notes payable in conjunction with the audit of interest expense and interest payable. Explain the advantages of this approach.

Q: State what is meant by cost accounting records and explain their importance

State what is meant by cost accounting records and explain their importance in the conduct of an audit.

Q: Many auditors assert that certain audit tests can be significantly reduced for

Many auditors assert that certain audit tests can be significantly reduced for clients with adequate perpetual records that include both unit and cost data. What are the most important tests of the pe...