Questions from Auditing and Assurance

Q: Parts for Wheels, Inc., has historically sold auto parts directly

Parts for Wheels, Inc., has historically sold auto parts directly to consumers through its retail stores. Due to competitive pressure, Parts for Wheels installed an Internet-based sales system that al...

Q: Angela Walsh is a new staff auditor. On her first three

Angela Walsh is a new staff auditor. On her first three engagements, she was assigned to perform tests of controls for acquisitions and payments and test of details of balances for accounts payable. T...

Q: The following are various potential frauds in the sales and collection cycle

The following are various potential frauds in the sales and collection cycle: 1. The company engaged in channel stuffing by shipping goods to customers that had not been ordered. 2. The allowance for...

Q: AU-C 265, “Communicating Internal Control Related Matters Identified

AU-C 265, “Communicating Internal Control Related Matters Identified in an Audit,” provides guidance to auditors on communicating deficiencies in internal control to management and those charged with...

Q: Section 404(a) of the Sarbanes–Oxley Act requires

Section 404(a) of the Sarbanes–Oxley Act requires management of a public company to issue a report on internal control over financial reporting (ICOFR) as of the end of the company’s fiscal year. Visi...

Q: Both transaction-related and balance-related audit objectives include objectives

Both transaction-related and balance-related audit objectives include objectives related to presentation and disclosure. Visit the website of the United States Securities and Exchange Commission (SEC)...

Q: Below are 10 independent risk factors: 1. The client

Below are 10 independent risk factors: 1. The client is one of the industry’s largest based on its size and market share. 2. The company is publicly traded. 3. The client fails to reconcile bank accou...

Q: How did the Sarbanes–Oxley Act of 2002 increase criminal liability

How did the Sarbanes–Oxley Act of 2002 increase criminal liability for auditors?

Q: In Part IV of this case study, you obtained an understanding

In Part IV of this case study, you obtained an understanding of internal control and made an initial assessment of control risk for each transaction-related audit objective for acquisition and cash di...

Q: This problem is based on the JA Tires data that was first

This problem is based on the JA Tires data that was first introduced in problem 6-35. If you have not already accessed the data, it can be downloaded from the textbook website. As part of risk assessm...