Questions from General Auditing


Q: The worksheet you completed for the case study question in chapter 8

The worksheet you completed for the case study question in chapter 8 includes your estimates of the overall risk assessment (ORA) and the acceptable detection risk (DR) in the sales to cash receipts p...

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Q: Bob Downe is auditing Red Gum Home Furniture (RGHF), a

Bob Downe is auditing Red Gum Home Furniture (RGHF), a manufacturer and retailer of boutique home furniture. RGHF was founded 25 years ago by a husband and wife team and has grown rapidly in the last...

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Q: Min Li is auditing RRR Services Inc. and has designed the

Min Li is auditing RRR Services Inc. and has designed the following tests: Test A 1. Select 150 cancelled cheques (8 percent of the total number of cheques) at random from the purchases journal for th...

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Q: The controls at a retail store were assessed by the lead auditor

The controls at a retail store were assessed by the lead auditor as being effective, and the auditor intended to rely on the operative effectiveness of controls around payroll in determining the nature,...

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Q: Discuss the appropriate method of sampling FH’s PPE for the planned tests

Discuss the appropriate method of sampling FH’s PPE for the planned tests of depreciation. Define the population. What assertions are most at risk?

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Q: What conclusion would you draw about “accuracy, valuation and allocation

What conclusion would you draw about “accuracy, valuation and allocation” of PPE from the above information? Justify your conclusion.

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Q: Required: a. Identify the key account balance at risk

Required: a. Identify the key account balance at risk because of the remuneration of the sales team at Shady Oaks. Identify and explain the key assertion at risk. b. Identify the key account balance a...

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Q: Required: For each of the test results for Gardens Nursing

Required: For each of the test results for Gardens Nursing Home: a. Identify whether this is a test of controls or a substantive test of detail. b. Determine the key assertion addressed by the test pr...

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Q: BBB auditors have been the auditor on the Wild Ride Theme Park

BBB auditors have been the auditor on the Wild Ride Theme Park for the past two years. They have completed both the financial audit and the audit for the Department of Sport and Leisure, stating that t...

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Q: Emma Maltz has been appointed as audit senior of the accounts receivable

Emma Maltz has been appointed as audit senior of the accounts receivable area in the audit of Fantastic Cruises, a company operating leisure cruises from ports in eastern Canada. Fantastic Cruises sel...

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