Q: The following unrelated events occurred after the balance sheet date but before
The following unrelated events occurred after the balance sheet date but before the audit report was prepared: 1. The granting of a retroactive pay increase 2. Declaration of a stock dividend 3. Sale...
See AnswerQ: The field work for the June 30, 2011, audit of
The field work for the June 30, 2011, audit of Tracy Brewing Company was finished August 19, 2011, and the completed financial statements, accompanied by the signed audit reports, were mailed Septembe...
See AnswerQ: Leslie Morgan, CPA, has prepared a letter of representation for
Leslie Morgan, CPA, has prepared a letter of representation for the president and controller to sign. It contains references to the following items: 1. Inventory is fairly stated at the lower of cost...
See AnswerQ: You are responsible for the audit of inventory for Honey Best Grocery
You are responsible for the audit of inventory for Honey Best Grocery Wholesales, Inc., a closely held grocery wholesaler that sells to independent grocery stores. Inventory is by far the largest acco...
See AnswerQ: As a part of the audit of Ren Gold Manufacturing Company,
As a part of the audit of Ren Gold Manufacturing Company, a nonpublic company, management requests basic financial statements and separately, the same basic financial statements accompanied by additio...
See AnswerQ: The following items were discovered during the December 31, 2011 audit
The following items were discovered during the December 31, 2011 audit of the financial statements of Westmoreland Corporation: 1. The company's financial statements did not include an accrual for bon...
See AnswerQ: In a letter to the audit committee of the Cline Wholesale Company
In a letter to the audit committee of the Cline Wholesale Company, Jerry Schwartz, CPA, informed them of material weaknesses in the control of inventory. In a separate letter to senior management, he...
See AnswerQ: The Accounting and Review Services Committee (ARSC) is responsible for
The Accounting and Review Services Committee (ARSC) is responsible for issuing standards for compilations and reviews of financial statement issued by nonpublic companies. Visit the AICPA website (www...
See AnswerQ: Questions 1 through 8 are typically found in questionnaires used by auditors
Questions 1 through 8 are typically found in questionnaires used by auditors to obtain an understanding of internal control in the acquisition and payment cycle. In using the questionnaire for a clien...
See AnswerQ: What is meant by the term level of assurance? How does
What is meant by the term level of assurance? How does the level of assurance differ for an audit of historical financial statements, a review, and a compilation?
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