Questions from Auditing and Assurance

Q: Taylor, a CPA, has been engaged to audit the financial

Taylor, a CPA, has been engaged to audit the financial statements of University Books, Incorporated. University Books maintains a large cash fund exclusively for the purpose of buying used books from...

Q: You are the in-charge auditor examining the financial statements of

You are the in-charge auditor examining the financial statements of the Gutzler Company for the year ended December 31. During late October, with the help of Gutzler’s controller, yo...

Q: Which of the following is an effective audit procedure that an auditor

Which of the following is an effective audit procedure that an auditor might use to detect kiting between intercompany banks? a. Review the composition of authenticated deposit slips. b. Review subseq...

Q: You are the auditor for Konerko’s Office Supply Store, which is

You are the auditor for Konerko’s Office Supply Store, which is opening for business next week. The store owner has established all the controls you have recommended for ensuring that sales are record...

Q: Auditors typically will find the items lettered A–F in a

Auditors typically will find the items lettered A–F in a client-prepared bank reconciliation. Required: Assume these facts: On October 11, the auditor received a cutoff bank statem...

Q: You can use the computer-based Electronic Audit Documentation on the

You can use the computer-based Electronic Audit Documentation on the textbook’s website to prepare the proof of cash required in this problem. The auditors of Steffey Ltd., decided to study the cash r...

Q: You can use the computer-based Electronic Workpapers on the textbook

You can use the computer-based Electronic Workpapers on the textbook website to prepare the schedule of interbank transfers required in this problem. EverReady Corporation is in the home building and...

Q: Caulco Inc. is the audit client. The February bank statement

Caulco Inc. is the audit client. The February bank statement is shown in Exhibit 6.3 in the text. You have obtained the client-prepared bank reconciliation as of February 28 (see the follo...

Q: What is the difference between a normal procedure and an extended procedure

What is the difference between a normal procedure and an extended procedure?

Q: How can you tell whether the amount on a check was altered

How can you tell whether the amount on a check was altered after it was paid by a bank?