Questions from Auditing and Assurance

Q: The following audit procedures are typical of those found in auditing the

The following audit procedures are typical of those found in auditing the payroll and personnel cycle: 1. Examine owner approval of rates of pay and withholdings. 2. Examine evidence that payroll hour...

Q: Your client, Ridgewood Heating and Cooling, specializes in residential air

Your client, Ridgewood Heating and Cooling, specializes in residential air conditioning and heating installations. The company maintains an inventory of air conditioning units, furnaces, and air handl...

Q: Below are four independent client scenarios: 1. Food Giant

Below are four independent client scenarios: 1. Food Giant is a regional grocery store chain located in the Pacific Northwest. Rather than operate a company-owned distribution center, Food Giant uses...

Q: As a part of your clerical tests of inventory for Martin Manufacturing

As a part of your clerical tests of inventory for Martin Manufacturing, you have tested about 20 percent of the dollar items and have found the following exceptions: 1. Pricing errors: 2. Difference...

Q: You have been engaged for the audit of the Y Company for

You have been engaged for the audit of the Y Company for the year ended December 31, 2019. The Y Company is in the wholesale chemical business and makes all sales at 25 percent over cost. Following ar...

Q: The following are audit procedures in the sales and collection cycle:

The following are audit procedures in the sales and collection cycle: 1. Foot the aged trial balance using audit software and compare the total with the general ledger. 2. Match sales invoices with su...

Q: Following are audit procedures commonly performed in the inventory and warehousing cycle

Following are audit procedures commonly performed in the inventory and warehousing cycle for a manufacturing company: 1. Account for a sequence of raw material requisitions and examine each requisitio...

Q: Assume that a sample of 100 units was obtained in sampling the

Assume that a sample of 100 units was obtained in sampling the inventory in Question 17-10. Assume further that the following three misstatements were found: Calculate the overstatement bound for th...

Q: Items 1 through 7 are questions typically found in a standard internal

Items 1 through 7 are questions typically found in a standard internal control questionnaire used by auditors to obtain an understanding of internal control for notes payable. In using the questionnai...

Q: Auditors are required to understand the client’s industry and business but may

Auditors are required to understand the client’s industry and business but may not be experts in identifying the quantity and value of certain inventory items. For example, consider observing a physic...