Questions from Auditing and Assurance

Q: You are engaged in the audit of Reed Company, a new

You are engaged in the audit of Reed Company, a new client, at the end of its first fiscal year, June 30, 20X1. During your work on inventories, you discover that all of the merchandise remaining in s...

Q: Assume that you are auditing Roberts Wholesale Supply Co. and that

Assume that you are auditing Roberts Wholesale Supply Co. and that you have decided to use data analytics to test the inventory. Specifically, you would like to identify (1) excess and overvalued item...

Q: Use the following to provide the type of audit report the auditors

Use the following to provide the type of audit report the auditors generally should issue in the situations presented below: 1. Unmodified—standard. 2. Unmodified—with an emphasis-of-matter paragraph....

Q: Grandview Manufacturing Company employs standard costs in its cost accounting system.

Grandview Manufacturing Company employs standard costs in its cost accounting system. List the audit procedures that you would apply to ascertain that Grandview’s standard costs and related variance a...

Q: List and state the purpose of all audit procedures that might reasonably

List and state the purpose of all audit procedures that might reasonably be applied by the auditors to determine that all property and equipment retirements have been recorded in the accounting record...

Q: Girard Corporation has just completed the acquisition of Williams, Inc.,

Girard Corporation has just completed the acquisition of Williams, Inc., at a purchase price significantly higher than the fair values of the identifiable assets. Describe the audit issues caused by t...

Q: You are part of the audit team that is auditing Happy Chicken

You are part of the audit team that is auditing Happy Chicken, Inc., a company that franchises Happy Chicken family restaurants. During the current year, management of Happy Chicken purchased for $2 m...

Q: Assume that a continuing audit client has recorded Accounts Receivable and Equipment

Assume that a continuing audit client has recorded Accounts Receivable and Equipment both in the amount of $1,000,000. In a typical audit, which account would take more time to audit?

Q: An executive of a manufacturing company informs you that no formal procedures

An executive of a manufacturing company informs you that no formal procedures have been followed to control the retirement of machinery and equipment. A physical inventory of plant assets has just bee...

Q: Gruen Corporation is a large diversified company with a large amount of

Gruen Corporation is a large diversified company with a large amount of property, plant, and equipment and intangible assets, including goodwill. In the past year the company has experienced a signifi...