Questions from Auditing and Assurance

Q: You have been engaged to audit the financial statements of Hardy Hardware

You have been engaged to audit the financial statements of Hardy Hardware Distributors Inc., as of December 31. In your review of the corporate nonfinancial records, you have found that Hardy Hardware...

Q: Hide the Loss under the Goodwill Gulwest Industries, a public company

Hide the Loss under the Goodwill Gulwest Industries, a public company, decided to discontinue its unprofitable line of business of manufacturing sporting ammunition. Gulwest had capitalized the startu...

Q: Follow the instructions preceding the case in problem 10.60.

Follow the instructions preceding the case in problem 10.60. Write the audit approach section like the cases in the chapter. In Plane View Whiz Corporation owned 160,000 shares of Wing Company stock,...

Q: Follow the instructions preceding the case in problem 10.60.

Follow the instructions preceding the case in problem 10.60. Write the audit approach section like the cases in the chapter. Rogue Trader In February 1989, 22-year-old Nicholas Leeson joined Barings...

Q: Cassandra Corporation, a manufacturing company, periodically invests large sums in

Cassandra Corporation, a manufacturing company, periodically invests large sums in marketable equity securities. The investment committee of the board of directors established the investment policy. T...

Q: What are some specific transactions that an auditor would expect to be

What are some specific transactions that an auditor would expect to be approved by the board of directors? How would it affect the audit if these transactions were not required to be approved by the b...

Q: When the client holds a large amount of negotiable securities, auditors

When the client holds a large amount of negotiable securities, auditors need to plan to guard against a. Unauthorized negotiation of the securities before they are counted. b. Unrecorded sales of secu...

Q: You are engaged in the audit of the financial statements of Bass

You are engaged in the audit of the financial statements of Bass Corporation for the year ended December 31 and you are about to begin an audit of the investment securities. Bass’s records indicate th...

Q: What documentation should an auditor inspect when a client has paid off

What documentation should an auditor inspect when a client has paid off a bank note? How could an employee defraud the company if the bank note has no indication of being paid?

Q: When an entity uses a trust company as custodian of its marketable

When an entity uses a trust company as custodian of its marketable securities, the possibility of concealing fraud most likely would be reduced if the a. Trust company has no direct contact with the e...