Questions from Auditing and Assurance

Q: Which of the following audit procedures would not likely be performed for

Which of the following audit procedures would not likely be performed for audits of shareholders’ equity? a. Read board of directors’ minutes for authorization of equity transactions. b. Confirm outst...

Q: Loan covenants are used for which of the following reasons?

Loan covenants are used for which of the following reasons? a. To protect the lender from the borrower’s substantially weakening of the latter’s financial position. b. To protect the borrower from the...

Q: What constitutes the authorization for notes payable? What documentary evidence could

What constitutes the authorization for notes payable? What documentary evidence could auditors examine to confirm this authorization?

Q: Use the information related to ELM’s payment and discount policy (referenced

Use the information related to ELM’s payment and discount policy (referenced earlier) to analyze the company’s discount program and late payments. All dates for payments are based off the date the cus...

Q: You have been instructed to create an aging schedule for ELM’s accounts

You have been instructed to create an aging schedule for ELM’s accounts receivable using IDEA. For the purposes of this exercise, assume the aging begins on the date that the customer is invoiced and...

Q: What effect can related-party transactions have in some cases of

What effect can related-party transactions have in some cases of asset valuation? (Refer to the Go for the Gold case.)

Q: What are roll-forward procedures? Provide some examples.

What are roll-forward procedures? Provide some examples.

Q: What is a control activity?

What is a control activity?

Q: What additional issues are involved with miscellaneous, other, and clearing

What additional issues are involved with miscellaneous, other, and clearing accounts?

Q: What are auditors’ responsibilities with respect to accounting estimates made by management

What are auditors’ responsibilities with respect to accounting estimates made by management?