Questions from Auditing and Assurance

Q: Smith is the partner in charge of the audit of Blue Distributing

Smith is the partner in charge of the audit of Blue Distributing Corporation, a wholesaler that owns one warehouse containing 80 percent of its inventory. Smith is reviewing the working papers that we...

Q: Hovington, CPA, knows that while audit objectives relating to inventories

Hovington, CPA, knows that while audit objectives relating to inventories may be stated in terms of the assertions as presented in this chapter, they also may be subdivided and stated more specificall...

Q: You have been with Zaird & Associates for approximately three months and

You have been with Zaird & Associates for approximately three months and are completing your work on the BizCaz audit. BizCaz produces pullover knit shirts to address the business casual market for bo...

Q: Western Trading Company is a sole proprietorship engaged in the grain brokerage

Western Trading Company is a sole proprietorship engaged in the grain brokerage business. On December 31, 20X0, the entire grain inventory of the company was stored in outside bonded warehouses. The c...

Q: You are the senior accountant in the audit of Granger Grain Corporation

You are the senior accountant in the audit of Granger Grain Corporation, whose business primarily involves the purchase, storage, and sale of grain products. The corporation owns several elevators loc...

Q: The following are typical questions that might appear on an internal control

The following are typical questions that might appear on an internal control questionnaire for accounts payable. 1. Are monthly statements from vendors reconciled with the accounts payable listing? 2....

Q: As part of your first audit of the financial statements of Marina

As part of your first audit of the financial statements of Marina del Rey, Inc., you have decided to confirm some of the accounts payable. You are now in the process of selecting the individual compan...

Q: The audit staff of Adams, Barnes & Co. (ABC

The audit staff of Adams, Barnes & Co. (ABC), CPAs, reported the following audit findings in their 20X5 audit of Keystone Computers & Networks (KCN), Inc.: 1. Unrecorded liabilities in the amount of $...

Q: The observation of a client’s physical inventory is a mandatory auditing procedure

The observation of a client’s physical inventory is a mandatory auditing procedure when possible for the auditors to carry out and when inventories are material. Required: a. Why is the observation o...

Q: Marshall and Wyatt, CPAs, has been the independent auditor of

Marshall and Wyatt, CPAs, has been the independent auditor of Interstate Land Development Corporation for several years. During these years, Interstate prepared and filed its own annual income tax ret...