Questions from Auditing and Assurance

Q: Included in the December 31, 2011, inventory of the Wholeridge

Included in the December 31, 2011, inventory of the Wholeridge Supply Company are 2,600 deluxe ring binders in the amount of $5,902. An examination of the most recent acquisitions of binders showed th...

Q: The Ruswell Manufacturing Company applied manufacturing overhead to inventory at December 31

The Ruswell Manufacturing Company applied manufacturing overhead to inventory at December 31, 2011, on the basis of $3.47 per direct labor hour. Explain how you will evaluate the reasonableness of tot...

Q: Which analytical procedures are most important in verifying notes payable? Which

Which analytical procedures are most important in verifying notes payable? Which types of misstatements can the auditor uncover by the use of these tests?

Q: Why is it more important to search for unrecorded notes payable than

Why is it more important to search for unrecorded notes payable than for unrecorded notes receivable? Suggest audit procedures that the auditor can use to uncover unrecorded notes payable.

Q: What is the primary purpose of analyzing interest expense? Given this

What is the primary purpose of analyzing interest expense? Given this purpose, what primary considerations should the auditor keep in mind when doing the analysis?

Q: Each employee for the Gedding Manufacturing Co., a firm using a

Each employee for the Gedding Manufacturing Co., a firm using a job-cost inventory costing method, must reconcile his or her total hours worked with the hours worked on individual jobs using a job tim...

Q: Distinguish between (a) Tests of controls and substantive tests

Distinguish between (a) Tests of controls and substantive tests of transactions (b) Tests of details of balances for liability accounts in the capital acquisition and repayment cycle.

Q: List two types of restrictions long-term creditors often put on

List two types of restrictions long-term creditors often put on companies when granting them a loan. How can the auditor find out about these restrictions?

Q: What are the primary objectives in the audit of owners' equity accounts

What are the primary objectives in the audit of owners' equity accounts?

Q: Evaluate the following statement: "The corporate charter and the bylaws

Evaluate the following statement: "The corporate charter and the bylaws of a company are legal documents; therefore, they should not be examined by the auditors. If the auditor wants information about...