Questions from General Accounting

Q: Do you believe the internal audit activity should be independent? Explain

Do you believe the internal audit activity should be independent? Explain.

Q: Do you believe that the SEC should prohibit auditors from providing all

Do you believe that the SEC should prohibit auditors from providing all nonaudit services for audit clients? Use ethical reasoning to support your answer.

Q: Assume that a CPA serves as an audit client’s business consultant and

Assume that a CPA serves as an audit client’s business consultant and performs each of the following services for the client. Identify the threats to independence. Do you believe any safeguards can be...

Q: What are the objectives of audit risk assessment, and why is

What are the objectives of audit risk assessment, and why is it important in assessing the likelihood that fraud may occur? Explain why risk assessment performed during audit planning sets the tone fo...

Q: (a) How does the time period assumption affect an accountant’s

(a) How does the time period assumption affect an accountant’s analysis of business transactions? (b) Explain the terms fiscal year, calendar year, and interim periods.

Q: An analysis of transactions for S. Moses & Co. was

An analysis of transactions for S. Moses & Co. was presented in E1–8. Instructions Prepare an income statement and an owner’s equity statement for August and a...

Q: Yount Company reports the following for the month of June.

Yount Company reports the following for the month of June. Instructions (a) Compute the cost of the ending inventory and the cost of goods sold under (1) FIFO and (2) LIFO. (b) Which costing method g...

Q: In its first month of operation, Gulletson Company purchased 100 units

In its first month of operation, Gulletson Company purchased 100 units of inventory for $6, then 200 units for $7, and finally 150 units for $8.At the end of the month, 180 units remained. Compute the...

Q: Alou Appliance Center accumulates the following cost and market data at December

Alou Appliance Center accumulates the following cost and market data at December 31. Compute the lower-of-cost-or-market valuation for the company’s total inventory.

Q: Jones Company had 100 units in beginning inventory at a total cost

Jones Company had 100 units in beginning inventory at a total cost of $10,000. The company purchased 200 units at a total cost of $26,000. At the end of the year, Jones had 80 units in ending inventor...