Questions from General Auditing


Q: DDD Motor Sales Inc. is privately owned. It wants to

DDD Motor Sales Inc. is privately owned. It wants to expand its business and has approached its bank for a loan. DDD wants the funds to purchase additional inventory and will be able to provide excell...

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Q: Linda is the managing partner of Osuji and Associates, a small

Linda is the managing partner of Osuji and Associates, a small audit firm. Linda’s role includes managing the business affairs of the firm, and she is very worried about the amount of fees outstanding...

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Q: The accounting firm of Aschari and Di Tomaso was engaged to perform

The accounting firm of Aschari and Di Tomaso was engaged to perform an audit of the financial statements of Pammenter Inc. During the audit, Pammenter’s senior managers refused to give the auditors th...

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Q: Cool Look Limited (CLL) is a high-end clothing

Cool Look Limited (CLL) is a high-end clothing design and manufacturing company that has been in business in Canada since 1964. CLL started as an owner-managed enterprise created and run by Hector Gau...

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Q: Securimax Limited has been an audit client of KFP Partners for the

Securimax Limited has been an audit client of KFP Partners for the past 15 years Securimax is based in Waterloo, where it manufactures high-tech armour-plated personnel carriers. Securimax often has...

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Q: Certek Technologies Inc. is a biotechnology company whose stock traded on

Certek Technologies Inc. is a biotechnology company whose stock traded on a major Canadian stock exchange. Over the 22 months following its initial public offering in May 2009, Certek’s stock rose an...

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Q: A sample audit report is provided in figure 1.3 in

A sample audit report is provided in figure 1.3 in this chapter. A sample review engagement report is provided in figure 1.4. Required: a. What is the auditor’s responsibility as de...

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Q: You have recently graduated from university and have started work with an

You have recently graduated from university and have started work with an audit firm. You meet an old school friend, Kim, for dinner—you haven’t seen each other for several years. Kim is surprised tha...

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Q: Theobald Ltd. has an internal audit department that primarily focuses on

Theobald Ltd. has an internal audit department that primarily focuses on audits of the efficiency and effectiveness of its production departments. The other main role of the internal audit department...

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Q: Legal implications of client acceptance Moderate LO 4, 5 Godwin,

Legal implications of client acceptance Moderate LO 4, 5 Godwin, Key & Associates is a small but rapidly growing audit fi rm. Its success is largely due to the growth of several clients that have been...

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