Questions from Auditing and Assurance

Q: Robert Myers, CPA, has been engaged to audit the City

Robert Myers, CPA, has been engaged to audit the City of Mystic in accordance with the Single Audit Act. Robert is aware that the Single Audit Act requires additional tests of major federal financial...

Q: Chem-Lite, Inc., maintains its accounts on the basis

Chem-Lite, Inc., maintains its accounts on the basis of a fiscal year ending March 31. At March 31, 20X1, the Equipment account in the general ledger appeared as shown below. The company uses straight...

Q: A summary of the controls for the acquisition cycle of Keystone Computers

A summary of the controls for the acquisition cycle of Keystone Computers & Networks, Inc., appears in Appendix 14A. Required: a. For the following three controls over the acquisition cycle, indi...

Q: As indicated on the control risk assessment working paper in Appendix 14A

As indicated on the control risk assessment working paper in Appendix 14A, the auditors identified two weaknesses in internal control over the acquisition cycle of KCN. Describe the implications of ea...

Q: The auditors’ working paper that relates control strengths and weaknesses to the

The auditors’ working paper that relates control strengths and weaknesses to the assertions about purchases and accounts payable is presented in Appendix 14A. This working paper also presents the audi...

Q: You are a young CPA just starting your own practice in Hollywood

You are a young CPA just starting your own practice in Hollywood, California, after five years’ experience with a “Big 4” firm. You have several connections in the entertainment industry and hope to d...

Q: For each of the following brief scenarios, assume that you are

For each of the following brief scenarios, assume that you are reporting on a client’s current-year financial statements. Reply as to the type or types of opinion possible in the circumstance. S Unmod...

Q: Many companies employ outside service companies that specialize in counting, pricing

Many companies employ outside service companies that specialize in counting, pricing, extending, and footing inventories. These service companies usually furnish a certificate attesting to the value o...

Q: Your firm audits Metropolitan Power Supply (MPS). The issue under

Your firm audits Metropolitan Power Supply (MPS). The issue under consideration is the treatment in the company’s financial statements of $700 million in capitalized construction costs relating to Eag...

Q: For each of the following independent cases, state the highest level

For each of the following independent cases, state the highest level of deficiency that you believe the circumstances represent: a control deficiency, a significant deficiency, or a material weakness....