Questions from Auditing and Assurance

Q: You have been assigned to the audit of Utopia Industries Inc.

You have been assigned to the audit of Utopia Industries Inc. for the year ended December 31, 20X1. The company makes components for communications and defense applications. To obtain an understanding...

Q: Kevin koi, CPA, was engaged to audit Tolle Company’s financial

Kevin koi, CPA, was engaged to audit Tolle Company’s financial statements for the year ended December 31, 20X0. After obtaining an understanding of Tolle’s internal control, koi decided to obtain audi...

Q: The auditors wish to test the valuation of accounts receivable in the

The auditors wish to test the valuation of accounts receivable in the audit of Desert Enterprises of Bullhead City. The client has $500,000 of total recorded receivables, composed of 850 accounts. Th...

Q: Len Wagner, CPA, is considering the use of monetary unit

Len Wagner, CPA, is considering the use of monetary unit sampling in examining the sales transactions and accounts receivable of Mason Wholesale Company. Required: a. How does the definition of the i...

Q: Brittany Petro wishes to use mean-per-unit sampling to

Brittany Petro wishes to use mean-per-unit sampling to evaluate the reasonableness of the book value of the accounts receivable of Littler, Inc. littler has 10,000 receivable accounts with a total boo...

Q: Use the replies presented in the preceding problem for this problem.

Use the replies presented in the preceding problem for this problem. a. Use the ratio method to calculate: (1) Projected misstatement. (2) Estimated total audited value. b. Use the difference estimati...

Q: Select the best answer for each of the following questions. Explain

Select the best answer for each of the following questions. Explain the reasons for your selection. a. The auditors are using unratified mean-per-unit sampling to audit accounts receivable as they did...

Q: James Duffney, CPA, has randomly selected and audited a sample

James Duffney, CPA, has randomly selected and audited a sample of 100 of Will-Mart’s accounts receivable. Will-Mart has 6,000 accounts receivable accounts with a total book value of $6,000,000. Duffne...

Q: You are the auditor of Unet Inc., an auto air-

You are the auditor of Unet Inc., an auto air-conditioner service and repair company, and you have decided to use the mean-per-unit method to test the existence and gross valuation of recorded account...

Q: Linda Williams is auditing the financial statements of Western Industries. In

Linda Williams is auditing the financial statements of Western Industries. In the performance of mean-per-unit estimation of credit sales, Williams took a sample of 200 of the 10,000 items in the popu...