Questions from Auditing and Assurance

Q: A CPA’s client, Boos & Baumkirchner, Inc., is a

A CPA’s client, Boos & Baumkirchner, Inc., is a medium-size manufacturer of products for the leisure-time activities market (camping equipment, scuba gear, bows and arrows, and so forth). During the p...

Q: One of the firm's audit partners, Alice Goodwin, just had

One of the firm's audit partners, Alice Goodwin, just had lunch with a good friend, Sara Hitchcock, who is president of Granger Container Corporation. Granger Container Corp. is a fast-growing company...

Q: Assessing the risk of fraud in a financial statement audit is a

Assessing the risk of fraud in a financial statement audit is a difficult audit judgment. Auditing standards require the auditor to perform several audit procedures to accumulate information to assess...

Q: Following are 10 key internal controls in the payroll cycle for Gilman

Following are 10 key internal controls in the payroll cycle for Gilman Stores, Inc. Key Controls 1. To input hours worked, payroll accounting personnel input the employee's Social Security number. The...

Q: Your new audit client, Hardwood Lumber Company, has a computerized

Your new audit client, Hardwood Lumber Company, has a computerized accounting system for all financial statement cycles. During planning, you visited with the information systems vice president and le...

Q: Parts for Wheels, Inc. has historically sold auto parts directly

Parts for Wheels, Inc. has historically sold auto parts directly to consumers through its retail stores. Due to competitive pressure, Parts for Wheels installed an Internet-based sales system that all...

Q: Based on a cost-benefit analysis, management at First Community

Based on a cost-benefit analysis, management at First Community Bank decided to contract with Technology Solutions, a local data center operator, to host all of the bank's financial reporting applicat...

Q: How does the use of a database management system affect risks?

How does the use of a database management system affect risks?

Q: What sources are used by the auditor to gather information to assess

What sources are used by the auditor to gather information to assess fraud risks?

Q: What should the audit team consider in its planning discussion about fraud

What should the audit team consider in its planning discussion about fraud risks?