Questions from Auditing and Assurance

Q: On October 21, Rand & Brink, a CPA firm,

On October 21, Rand & Brink, a CPA firm, was retained by Suncraft Appliance Corporation to perform an audit for the year ended December 31. A month later, James Minor, president of the corporation, in...

Q: In selecting items for examination, an auditor considered three alternatives:

In selecting items for examination, an auditor considered three alternatives: (a) random number table selection, (b) systematic selection, and (c) random number generator selection. Which, if any, of...

Q: Give two reasons audit work on cash is likely to be more

Give two reasons audit work on cash is likely to be more extensive than might appear to be justified by the relative amount of the balance sheet figure for cash.

Q: Today you had lunch with your friend Sarah Teasdale. Sarah has

Today you had lunch with your friend Sarah Teasdale. Sarah has worked with Zaird & Associates, CPAs, for about two years. You’ve been with Zaird for only nine months. You discussed with her your diffi...

Q: List the factors affecting sample size in a MUS.

List the factors affecting sample size in a MUS.

Q: “When using a systematic sample selection technique with monetary unit sampling

“When using a systematic sample selection technique with monetary unit sampling, every account larger than the sampling interval will automatically be included in the sample.” Do you agree? Explain....

Q: When using MUS, do auditors select sample items based on individual

When using MUS, do auditors select sample items based on individual dollars, audit individual dollars, or both?

Q: A company has an inventory with a book value of $4

A company has an inventory with a book value of $4,583,231, which includes 116 product lines and a total of 326,432 units. How many items compose this population for purposes of applying a monetary un...

Q: “When no misstatements are found in MUS, the upper limit

“When no misstatements are found in MUS, the upper limit on misstatement is equal to zero.” Is this statement correct? Explain.

Q: A monetary unit sample with a sampling interval of $2,

A monetary unit sample with a sampling interval of $2,000 includes an item with an audited value of $90. This value was $30 lower than the account’s book value. Calculate the tainting percentage for t...