Questions from General Auditing

Q: Comment on the audit strategy likely to be adopted for the audit

Comment on the audit strategy likely to be adopted for the audit of patient revenue for Gardens Nursing Home

Q: Clear Sky Aviation credits prepayments of air travel to a deferred revenue

Clear Sky Aviation credits prepayments of air travel to a deferred revenue account until the travel service is provided, at which point it transfers the appropriate amount to sales revenue. A problem...

Q: LLL Avionics Ltd. has contacted your accounting firm to inquire about

LLL Avionics Ltd. has contacted your accounting firm to inquire about the cost of an external audit. The company’s president explained that he feels that “the previous auditor charged too much and onl...

Q: This is the second year that your firm is auditing JJ Company

This is the second year that your firm is auditing JJ Company, which is developing a new drug for a rare form of cancer. The company is controlled by Jack Mukash, who purchased the shares from the pre...

Q: Triple J Movers Ltd. is owned by Jacques Tétreault. The

Triple J Movers Ltd. is owned by Jacques Tétreault. The company used to be profitable but several new small companies have started to compete with Triple J, offering very low prices that Triple J cann...

Q: You are the audit supervisor of Seagull & Co and are currently

You are the audit supervisor of Seagull & Co and are currently planning the audit of your existing client, Eagle Heating Co., for the year ending December 31, 2020. Eagle manufactures and sells heatin...

Q: Ana Dinh used 0.5 to 5 percent of gross profit

Ana Dinh used 0.5 to 5 percent of gross profit in determining materiality of $70,000 in her audit of XYZ Inc., a company that builds replacement engines for tractors and combines. She used the $70,000...

Q: Atlantic Academy is a private school that offers education to children from

Atlantic Academy is a private school that offers education to children from Kindergarten to Grade 7. The school operates as a not-for-profit entity and oversight of the school is performed by the boar...

Q: Answer the following questions based on the information presented for Cloud 9

Answer the following questions based on the information presented for Cloud 9 in Appendix A to this book and in the current and earlier chapters. You should also consider your answers to the case stud...

Q: Yellow Aviation is an existing client of PPP Partners. The auditors

Yellow Aviation is an existing client of PPP Partners. The auditors are aware that the impact of a global economic slowdown on airlines has been severe, with predictions of a prolonged downturn. Also,...