Questions from Auditing and Assurance

Q: Describe the audit steps that generally would be followed in establishing the

Describe the audit steps that generally would be followed in establishing the propriety of the recorded liability for federal income taxes of a corporation you are auditing for the first time. Conside...

Q: The only long-term liability of Range Corporation is a note

The only long-term liability of Range Corporation is a note payable for $1 million secured by a mortgage on the company’s plant and equipment. You have audited the company annually for the three prece...

Q: During your annual audit of Walker Distributing Co., your assistant,

During your annual audit of Walker Distributing Co., your assistant, Jane Williams, reports to you that, although a number of entries were made during the year in the general ledger account Notes Paya...

Q: You are engaged in the audit of the financial statements of Armada

You are engaged in the audit of the financial statements of Armada Corporation for the year ended August 31, 20X0. The balance sheet, reflecting all your audit adjustments accepted by the client to da...

Q: Select the best answer for each of the following and explain fully

Select the best answer for each of the following and explain fully the reason for your selection. a. Which of the following is least likely to be among the auditors’ objectives in th...

Q: You are retained by Columbia Corporation to audit its financial statements for

You are retained by Columbia Corporation to audit its financial statements for the fiscal year ended June 30. Your consideration of internal control indicates a fairly satisfactory condition, although...

Q: Valley Corporation established a stock option plan for its officers and key

Valley Corporation established a stock option plan for its officers and key employees this year. Because the options granted have a higher option price than the stock’s current market price, the compa...

Q: In your audit of the financial statements of Wolfe Company for the

In your audit of the financial statements of Wolfe Company for the year ended April 30, you find that a material account receivable is due from a company in reorganization under Chapter 11 of the Bank...

Q: OA Company recently hired a payroll service provider to process its payroll

OA Company recently hired a payroll service provider to process its payroll—that service provider has essentially taken over the payroll function, and payroll represents OA’s largest expense. Comment...

Q: During an audit engagement, Robert Wong, CPA, has satisfactorily

During an audit engagement, Robert Wong, CPA, has satisfactorily completed an examination of accounts payable and other liabilities and now plans to determine whether there are any loss contingencies...