Questions from Auditing and Assurance

Q: What documents would a company need to correctly account for its investment

What documents would a company need to correctly account for its investment securities, and what information would they obtain from these documents?

Q: The list of vouchers payable for Potter’s Magic Shoppe at December 31

The list of vouchers payable for Potter’s Magic Shoppe at December 31 is as follows: Checks written in the following January are: Required a. Prepare an audit plan for the audit...

Q: Mattel Inc., a manufacturer of toys, failed to write off

Mattel Inc., a manufacturer of toys, failed to write off obsolete inventory, thereby overstating inventory and improperly deferred tooling costs, both of which understated cost of goods sold and over...

Q: The diagram in Exhibit 9.51.1 describes several cost

The diagram in Exhibit 9.51.1 describes several cost accounting tests of controls. It shows the direction of the tests, leading from samples of cost accounting analyses, management reports, and the ge...

Q: An auditor usually traces the details of the test counts made during

An auditor usually traces the details of the test counts made during the observation of physical inventory counts to a final inventory compilation. This audit procedure is undertaken to provide eviden...

Q: A retailer’s physical count of inventory was higher than that shown by

A retailer’s physical count of inventory was higher than that shown by the perpetual records. Which of the following could explain the difference? a. Inventory items had been counted, but the tags pla...

Q: From the auditors’ point of view, inventory counts are more acceptable

From the auditors’ point of view, inventory counts are more acceptable prior to the year-end when a. Internal control is weak. b. Accurate perpetual inventory records are maintained. c. Inventory is s...

Q: Follow the instructions preceding Problem 9.61. Write the audit

Follow the instructions preceding Problem 9.61. Write the audit approach section following the case in the chapter. SueCan Corporation manufactured electronic and other equipment for private customers...

Q: Which of the following internal control activities most likely addresses the completeness

Which of the following internal control activities most likely addresses the completeness assertion for inventory? a. The work-in-process account is periodically reconciled with subsidiary inventory r...

Q: You have been assigned to trace the results of the observation of

You have been assigned to trace the results of the observation of Brightware China’s physical inventory count to its pricing and compilation. You note the following conditions. 1. The last inventory t...