Questions from Auditing and Assurance

Q: On January 15, 2018, Leno, Inc., which has

On January 15, 2018, Leno, Inc., which has a March 31 year-end, entered into a transaction to sell the land and building that contained its manufacturing operations for a total selling price of $19,75...

Q: How does the purchasing process affect prepaid insurance and property, plant

How does the purchasing process affect prepaid insurance and property, plant, and equipment transactions?

Q: Medical Products, Inc. (MPI) was created in 2016

Medical Products, Inc. (MPI) was created in 2016 and entered the optical equipment industry. Its made-to-order optical equipment requires large investments in research and development. To fund these n...

Q: Wyly Waste Management (“WWM”) is an SEC registrant and your

Wyly Waste Management (“WWM”) is an SEC registrant and your firm is its auditor. Overall materiality for the audit is $100,000. Shortly after the end of the year, WWM’s CFO is meeting with your audit...

Q: In February 2019, Ceramic Crucibles of America was notified by the

In February 2019, Ceramic Crucibles of America was notified by the state of Colorado that the state was investigating the company’s Durango facility to determine if there were any violations of federa...

Q: You are auditing the financial statements for your new client, Paper

You are auditing the financial statements for your new client, Paper Packaging Corporation, a manufacturer of paper containers, for the year ended March 31, 2019. Paper Packaging is a public company....

Q: For each of the following scenarios, indicate whether or not independence

For each of the following scenarios, indicate whether or not independence-related SEC rules are being violated, assuming that the audit entity is a public company. Briefly explain why or why not. a. A...

Q: Your supervisor tells you that for the next month you will be

Your supervisor tells you that for the next month you will be working on an audit entity with a controller who loves to talk. She explains that the entity will want you to spend an hour or so talking...

Q: While completing a test of controls, you appropriately cleared two minor

While completing a test of controls, you appropriately cleared two minor exceptions by examining related documents. The entity will need to do some serious digging to find the documents to resolve a t...

Q: Refer back to the hypothetical Sun City Savings and Loan case presented

Refer back to the hypothetical Sun City Savings and Loan case presented toward the beginning of this chapter, and consider each of the following independent situations: a. Suppose that Pina, Johnson &...