Questions from Auditing and Assurance

Q: Your audit firm was recently engaged to conduct the financial statement audit

Your audit firm was recently engaged to conduct the financial statement audit for BBH Automotive, an original equipment manufacturer (OEM) in the automotive industry. As the senior manager on the enga...

Q: The minutes of the board of directors of the Tetonic Metals Company

The minutes of the board of directors of the Tetonic Metals Company for the year ended December 31, 2019, were provided to you. Meeting of March 5, 2019 The meeting of the board of directors of Tetoni...

Q: Your comparison of the gross margin percent for Jones Drugs for the

Your comparison of the gross margin percent for Jones Drugs for the years 2016 through 2019 indicates a significant decline. This is shown by the following information: A discussion with Tanvi Anand...

Q: The following are specific balance-related audit objectives applied to the

The following are specific balance-related audit objectives applied to the audit of accounts receivable (a. through i.) and management assertions about account balances (1 through 6). The list referre...

Q: Analytical procedures are an important part of the audit process and consist

Analytical procedures are an important part of the audit process and consist of the evaluation of financial information by the study of plausible relationships among financial and nonfinancial data. A...

Q: Ling, an audit manager, is planning the audit of Modern

Ling, an audit manager, is planning the audit of Modern Technologies, Inc. (MT, Inc.), a manufacturer of electronic components. This is the first year that Ling’s audit firm has perf...

Q: Following are statements of earnings and financial position for Wexler Industries.

Following are statements of earnings and financial position for Wexler Industries. // Required: a. Use professional judgment in deciding on the preliminary judgment about materiality for earnings...

Q: Identify the management assertion and general balance-related audit objective for

Identify the management assertion and general balance-related audit objective for the specific balance-related audit objective: All recorded fixed assets exist at the balance sheet date.

Q: As the in-charge senior auditor on the audit engagement for

As the in-charge senior auditor on the audit engagement for JA Tire Manufacturing for the year ended December 31, 2019, you are responsible for performing risk assessment procedures related to the sal...

Q: Doyle and Jensen, CPAs, audited the accounts of Regal Jewelry

Doyle and Jensen, CPAs, audited the accounts of Regal Jewelry, Inc., a corporation that imports and deals in fine jewelry. Upon completion of the audit, the auditors supplied Regal Jewelry with 20 cop...