Questions from Auditing and Assurance

Q: The following misstatements are included in the accounting records of Newcomb &

The following misstatements are included in the accounting records of Newcomb & Company: 1. Direct labor was unintentionally charged to job 620 instead of job 602 by the payroll clerk when he key-ente...

Q: Tanvi Ghose is auditing payroll accruals for a manufacturing company. The

Tanvi Ghose is auditing payroll accruals for a manufacturing company. The client has accrued payroll taxes, accrued vacation pay, and accrued bonuses for salespersons as of the end of the fiscal year....

Q: The following are steps in the methodology for designing tests of controls

The following are steps in the methodology for designing tests of controls, substantive tests of transactions, and tests of details of balances for the payroll and personnel cycle: 1. Design tests of...

Q: The following are various audit procedures performed in the audit of the

The following are various audit procedures performed in the audit of the acquisition and payment cycle and accounts payable: 1. Foot the acquisitions journal for the month of August and trace postings...

Q: You are auditing the financial statements of Austin Software Company, which

You are auditing the financial statements of Austin Software Company, which is a fast-growing software development company. As part of the company’s strategy, management has been aggressively pursuing...

Q: Chief executive officer compensation can be a material amount and is often

Chief executive officer compensation can be a material amount and is often scrutinized by regulators, analysts, competitors, and investors. For CEOs of publicly traded companies, compensation can cons...

Q: What type of report might a service organization use as a marketing

What type of report might a service organization use as a marketing tool to provide potential customers information about the internal controls related to security at the service organization?

Q: As part of the June 30, 2019, audit of accounts

As part of the June 30, 2019, audit of accounts payable of Milner Products Company, the auditor sent 22 confirmations of accounts payable to vendors in the form of requests for statements. Four of the...

Q: You are part of the engagement team for the audit of Suzuki

You are part of the engagement team for the audit of Suzuki Manufacturing for the year ended December 31, 2019, and are responsible for auditing the acquisition cycle. Download the Excel file for the...

Q: The following misstatements are included in the inventory and related records of

The following misstatements are included in the inventory and related records of Westbox Manufacturing Company: 1. When raw material acquisitions were recorded, the improper unit price was included in...