Questions from Auditing and Assurance

Q: You are engaged to audit the Ferrick Corporation for the year ended

You are engaged to audit the Ferrick Corporation for the year ended December 31, 2018. Only merchandise shipped by the Ferrick Corporation to customers up to and including December 30, 2018, has been...

Q: You are the auditor for KPDZ Corporation. You gathered comparative information

You are the auditor for KPDZ Corporation. You gathered comparative information for inventory and accounts payable and calculated the days purchases in accounts payable. Required: Prepare a list of p...

Q: The flowchart shown below depicts the activities relating to the purchasing,

The flowchart shown below depicts the activities relating to the purchasing, receiving, and accounts payable departments of Model Company, Inc. Required: Based only on the flowchart, describe the co...

Q: In 2018, Kida Company purchased more than $10 million worth

In 2018, Kida Company purchased more than $10 million worth of office equipment under its “special” ordering system, with individual orders ranging from $5,000 to $30,000. “Special” orders entail low-...

Q: Coltrane, CPA, is auditing Jang Wholesaling Company’s financial statements and

Coltrane, CPA, is auditing Jang Wholesaling Company’s financial statements and is about to perform substantive audit procedures on Jang’s trade accounts payable balances. After obtaining an understand...

Q: You are engaged to perform an audit of the Giordani Corporation for

You are engaged to perform an audit of the Giordani Corporation for the year ended December 31, 2018. You have decided to perform the following cutoff test for payables and accruals. Select all items...

Q: You have been hired by Morris & Son, Inc., to

You have been hired by Morris & Son, Inc., to manage its human resource department. As a first step, you want to determine personnel needs and assigned duties in order to prevent errors and fraud in t...

Q: A CPA’s audit documentation (working papers) contains a narrative description

A CPA’s audit documentation (working papers) contains a narrative description of a segment of the Croyden Factory, Inc., payroll system and an accompanying flowchart (see below). Narrative The interna...

Q: McCarthy, CPA, was engaged to audit the financial statements of

McCarthy, CPA, was engaged to audit the financial statements of Kent Company, a continuing audit client. McCarthy is about to audit Kent’s payroll transactions. Kent uses an in-house...