Questions from Auditing and Assurance

Q: Orange Grove Farms has approached your CPA firm with some questions.

Orange Grove Farms has approached your CPA firm with some questions. Orange Grove’s management has spoken with a bank about obtaining a loan to expand its operations. The bank has informed Orange Grov...

Q: Your client, Cheaney Rental Properties, has engaged you to perform

Your client, Cheaney Rental Properties, has engaged you to perform a compilation of its forecasted financial statements for a loan with the National Bank of Rockwood. Required: a. Describe the steps...

Q: You are the manager of the examination engagement of the financial projection

You are the manager of the examination engagement of the financial projection of Honey’s Health Foods as of December 31, 2018, and for the year then ended. The audit senior, Currie, has prepared the f...

Q: The following report was drafted on October 25, 2018, by

The following report was drafted on October 25, 2018, by Major, CPA, at the completion of an engagement to compile the financial statements of Ajax Company for the fiscal year ended September 30, 2018...

Q: List four categories of intangible assets and four types of property,

List four categories of intangible assets and four types of property, plant, and equipment transactions.

Q: This question consists of 13 items pertaining to possible deficiencies in an

This question consists of 13 items pertaining to possible deficiencies in an accountant’s review report. Indicate whether each statement about a possible deficiency is correct (C) or incorrect (I) in...

Q: Park Corporation, a local sporting goods company, has asked your

Park Corporation, a local sporting goods company, has asked your firm for assistance in setting up its website. HeeSoo Park, the CEO, is concerned that potential customers will be reluctant to place o...

Q: Nakamura, CPA, has accepted an engagement to audit the financial

Nakamura, CPA, has accepted an engagement to audit the financial statements of Grant Manufacturing Company, a new client. Grant has an adequate control environment and a reasonable segregation of duti...

Q: Gonzales, CPA, is the auditor for a manufacturing company with

Gonzales, CPA, is the auditor for a manufacturing company with a balance sheet that includes the entry “Property, plant, and equipment.” Gonzales has been asked by...

Q: Lee, CPA, the continuing auditor of Wu, Inc.,

Lee, CPA, the continuing auditor of Wu, Inc., is beginning to audit the common stock and treasury stock accounts. Lee has decided to design substantive procedures without relying on the company’s inte...