Questions from Auditing and Assurance

Q: Explain why proper presentation of debt balances and related disclosures is important

Explain why proper presentation of debt balances and related disclosures is important from a creditor’s perspective.

Q: Under what circumstances would an auditor choose to confirm information such as

Under what circumstances would an auditor choose to confirm information such as the right of return or special sales terms in addition to the customer balance?

Q: Roost and Briley, CPAs, are doing the audit of Leggert

Roost and Briley, CPAs, are doing the audit of Leggert Lumber Co., an international wholesale lumber broker. Because of the nature of their business, payroll is the largest expense. You are the in-cha...

Q: You are the manager in the audit of Vernal Manufacturing Company and

You are the manager in the audit of Vernal Manufacturing Company and are turning your attention to the income statement accounts. The in-charge auditor assessed control risk for all cycles as low, sup...

Q: You are assigned to the December 31, 2019, audit of

You are assigned to the December 31, 2019, audit of Sea Gull Airframes, Inc. The company designs and manufactures aircraft superstructures and airframe components. You observed the physical inventory...

Q: The following tests of controls and substantive tests of transactions audit procedures

The following tests of controls and substantive tests of transactions audit procedures for acquisitions and cash disbursements are to be used in the audit of Ward Publishing Company. You concluded tha...

Q: In your audit of Aviary Industries for calendar year 2019, you

In your audit of Aviary Industries for calendar year 2019, you found number of matters that you believe represent possible adjustments to the company’s books. These matters are described below. Manage...

Q: For the audit of Carbald Supply Company, Carole Wever, CPA

For the audit of Carbald Supply Company, Carole Wever, CPA, is conducting a test of sales for 9 months of the year ended December 31, 2019. Included among her audit procedures are the following: 1. El...

Q: Explain why an auditor compares the “date of deposit according to

Explain why an auditor compares the “date of deposit according to the books” to the “date of disbursement according to the books” on an interbank transfer schedule to detect kiting.

Q: Briefly explain why accounting standards related to fair value estimates make the

Briefly explain why accounting standards related to fair value estimates make the audit of financial instruments more complex.