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In 2002 the audit firm Arthur Andersen collapsed following charges brought against it in the United States relating to the failure of its client, Enron. Some other clients announced that they would be...
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You are an audit senior performing the audit of Stella’s Stars Ltd., a talent agency. In performing the audit, Stella informs you of the following: 1. She does not want you to send the bank a confirmat...
See AnswerQ: You have spent two years working as an auditor. In that
You have spent two years working as an auditor. In that time, you have come across a number of errors in performing bank reconciliations. Outlined below are some of them: 1. An un reconciled item of $...
See AnswerQ: Shiny Happy Windows Co. (SHW) is a window cleaning
Shiny Happy Windows Co. (SHW) is a window cleaning company. Customers’ windows are cleaned monthly and the window cleaner then posts a stamped addressed envelope for payment through the customer’s fro...
See AnswerQ: Your firm is the auditor of Thai Textiles Ltd. and you
Your firm is the auditor of Thai Textiles Ltd. and you are auditing the financial statements for the year ended June 30, 2020. The company has sales of $2.5 million and a before-tax profit of $150,000. T...
See AnswerQ: IndaCar Inc. (IC) operates a high-end car
IndaCar Inc. (IC) operates a high-end car rental agency that specializes in the rental of unique vehicles and is located next to Lester B. Pearson International Airport in Toronto. IC is a private Can...
See AnswerQ: You have been asked by the financial controller, Walid Hossain,
You have been asked by the financial controller, Walid Hossain, of Potter Ltd. to carry out an investigation of a suspected fraud by the company’s cashier. The cashier, Alfred Blyton, has left the firm...
See AnswerQ: Mathias Co. sells cars, car parts, and gasoline from
Mathias Co. sells cars, car parts, and gasoline from 25 different locations in one country. Each branch has up to 20 staff working there, although most of the accounting systems are designed and impleme...
See AnswerQ: Your firm is the auditor of Trojan Trading Ltd. The audited
Your firm is the auditor of Trojan Trading Ltd. The audited financial statements for the year ended December 31, 2020, show the company’s revenue was $5 million and the profit before tax was $320,000. Th...
See AnswerQ: Your firm is the auditor of Zhao’s Charity for Pensioners. The
Your firm is the auditor of Zhao’s Charity for Pensioners. The charity was formed many years ago from a large gift by the Zhao family, the income from which is used to pay pensions t...
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