Questions from Auditing and Assurance

Q: Sorenson Manufacturing Corporation was incorporated on January 3, 2016. The

Sorenson Manufacturing Corporation was incorporated on January 3, 2016. The corporation’s financial statements for its first year’s operations were not examined by...

Q: Which of the following questions would auditors most likely include on an

Which of the following questions would auditors most likely include on an internal control questionnaire for notes payable? a. Are assets that collateralize notes payable critically needed for the ent...

Q: During the audit of Mason Company Inc. for the calendar year

During the audit of Mason Company Inc. for the calendar year 2014, you noted that the company produces aluminum cans at the rate of about 40 million units annually. On the plant tour, you noticed a la...

Q: Describe how the functions of (a) authorization of production transactions

Describe how the functions of (a) authorization of production transactions, (b) recording of these transactions, and (c) physical custody of inventories can be separated among the production, inventor...

Q: How does the production order record provide a control over the quantity

How does the production order record provide a control over the quantity of materials used in production?

Q: What population of documents would an auditor examine to determine whether (

What population of documents would an auditor examine to determine whether (a) all authorized production was completed and placed in inventory or recorded as scrap and (b) finished goods inventory was...

Q: List the management reports and computer files that can be used for

List the management reports and computer files that can be used for audit evidence. What information in them can be useful to auditors?

Q: How would substantive procedures for accounts payable be affected by (a

How would substantive procedures for accounts payable be affected by (a) a low risk of material misstatement or (b) a high risk of material misstatement?

Q: Describe the purpose and give examples of audit procedures in the search

Describe the purpose and give examples of audit procedures in the search for unrecorded liabilities.

Q: Describe the purpose and give examples of specific fraud detection procedures in

Describe the purpose and give examples of specific fraud detection procedures in the acquisition and expenditure cycle.