Questions from General Auditing

Q: You have access to the following information for Featherbed: •

You have access to the following information for Featherbed: • prior period financial statements • anticipated results for the current year • industry comparisons Required: Explain how you would use...

Q: a. Identify and explain any significant fraud risk factors for Featherbed

a. Identify and explain any significant fraud risk factors for Featherbed. b. For each fraud risk factor you identify, explain how the risk will affect your approach to the audit of Featherbed.

Q: Sisters Inc. beauty salon is a 100% subsidiary of Benefit

Sisters Inc. beauty salon is a 100% subsidiary of Benefit Beauty Supply Inc., a beauty supply company. As a result of this relationship, there were several transactions between the two entities during...

Q: Francine Rideau, controller of Quatco Company, is reviewing the year

Francine Rideau, controller of Quatco Company, is reviewing the year-end financial statements with Tonya Kowalski, the company president. The financial statements currently report a net income of $563...

Q: An airline company has been adversely impacted by a global economic slowdown

An airline company has been adversely impacted by a global economic slowdown and its effect on business travel. In addition to lower overall demand, the airline company faces increased competition fro...

Q: Ajax Finance Ltd. provides small- and medium-sized personal

Ajax Finance Ltd. provides small- and medium-sized personal, car, and business loans to clients. It has been operating for more than 10 years and run throughout its life by Bill Schultz. Bill has been...

Q: W&S Partners will need the assistance of auditors in China

W&S Partners will need the assistance of auditors in China and the United States and may need derivatives experts to complete the Cloud 9 audit. The other auditors will be asked to provide evidence ab...

Q: Planning, performance, and specific materiality Challenging LO 2 Claytonhill Beverages

Planning, performance, and specific materiality Challenging LO 2 Claytonhill Beverages Ltd. is 100-percent owned by Buzz Bottling. While the company has in the past been profitable, it incurred a loss...

Q: Carl’s Computers imports computer hardware and accessories from China, Japan,

Carl’s Computers imports computer hardware and accessories from China, Japan, Korea, and the United States. It has branches in every provincial capital, and the main administration office and central...

Q: Gold Explorers Inc. is a major Canadian gold mining corporation.

Gold Explorers Inc. is a major Canadian gold mining corporation. Gold Explorers has mines and development projects in Canada (Northern Ontario and British Columbia), the United States, and South Ameri...