Question: In addition to inquiring of individuals among

> Why is the scale of this map in minutes?

> With regard to the timing of conjugation, explain why the recipient cell at the top right is pro−, whereas the recipient cell in the bottom right is pro+.

> How is an F′ factor different from an F factor?

> What are the functions of relaxase, coupling factor, and the exporter in the process of conjugation?

> Explain how mRNA plays a role in all three stages of translation.

> Which disease occurs when homogentisic acid oxidase is defective?

> What is the role of the shipping document in invoicing customers? What are the most important management assertions related to customer billing?

> Ann Donnelly is a senior audit manager in an East Coast office of a public accounting firm. Her prospects for promotion to partner are excellent if she continues to perform at the same high-quality level as in the past. Ann was recently married, and she

> Barbara Whitley had great expectations about her future as she sat in her graduation ceremony in May 2018. She was about to receive her Master of Accounting degree, and in the next week she would begin her career on the audit staff of Green, Thresher & C

> The information technology (IT) department at Jacobsons, Inc., consists of eight employees, including the IT manager, Melinda Cullen. Cullen is responsible for the day-to-day oversight of the IT function and reports to Jacobsons’ chief operating officer

> McClain Plastics has been an audit client of Belcor, Rich, Smith & Barnes, CPAs (BRS&B), for several years. McClain Plastics was started by Evers McClain, who owns 51 percent of the company’s stock. The balance is owned by about 20 stockholders, who are

> The Maguire Pharmaceutical Company, a drug manufacturer, has the following internal controls for billing and recording accounts receivable: 1. An incoming customer’s purchase order is received in the order department by a clerk who prepares a prenumbered

> Auditors develop overall audit plans to ensure that they obtain sufficient appropriate audit evidence. The timing and extent of audit procedures auditors use is a matter of professional judgment, which depends upon a number of factors. Decisions about th

> The following are examples of audit procedures: 1. Watch employees count inventory to determine whether company procedures are being followed. 2. Count a sample of inventory items and record the amount in the audit files. 3. Calculate the ratio of sales

> Most grocery stores use bar code scanning technologies that interface with cash registers used to process customer purchases. Cashiers use the scanners to read bar code labels attached to each product, which the system then uses to obtain unit prices, ca

> Discuss changes in accounting and business operations over the last decade that have increased the need for independent audits.

> The following are audit procedures from different transaction cycles: 1. Examine sales invoices for evidence of internal verification of prices, quantities, and extensions. 2. Select items from the client’s perpetual inventory records and examine the ite

> The following are audit procedures from different transaction cycles: 1. Trace a sample of shipping documents to entry in the sales journal. 2. Examine a sample of warehouse removal slips for signature of authorized official. 3. Examine contract terms fo

> Internal controls 1 through 5 were tested in prior audits. Evaluate each internal control independently and determine which controls must be tested in the current year’s audit of the December 31, 2019, financial statements. Be sure to explain why testing

> This problem requires the use of ACL software, which can be accessed through the textbook website. Information about downloading and using ACL and the commands used in this problem can also be found on the textbook website. You should read all of the ref

> The SEC issues Accounting and Auditing Enforcement Releases (AAERs) summarizing SEC actions concerning civil lawsuits brought by the SEC in federal court and related settlements from administrative proceedings. Visit the SEC’s website (www.sec.gov) and l

> Following are 10 key internal controls in the payroll cycle for Gilman Stores, Inc. Key Controls 1. To input hours workedpayroll accounting personnel input the employee’s identification number. The system does not allow input of hours worked for invalid

> The following are independent situations for which you will recommend an appropriate audit report on internal control over financial reporting as required by PCAOB auditing standards: 1. During interim testing, the auditor identified and communicated to

> Anthony Liu, CPA, prepared the flowchart on the next page that portrays the raw materials purchasing function of one of Anthony’s clients, Medium-Sized Manufacturing Company, from the preparation of initial documents through the vouching of invoices for

> Mark Hopper is planning the audit of the investments account for audit client Garden Supply Co. (GSC). GSC invests excess cash at the end of the summer sales season through an investment manager who invests in equity and debt securities for GSCâ&#1

> This problem requires the use of ACL software, which can be accessed through the textbook website. Information about downloading and using ACL and the commands used in this problem can also be found on the textbook website. You should read all of the ref

> What is the role of the Public Company Accounting Oversight Board (PCAOB)? How does the PCAOB provide oversight of audit firms?

> The following audit procedures are included in the audit program because of heightened risks of material misstatements due to fraud. 1. Use audit software to search purchase transactions to identify any with nonstandard vendor numbers or with vendor name

> Your new audit client, Hardwood Lumber Company, has a computerized accounting system for all financial statement cycles. During planning, you visited with the information systems vice president and learned that personnel in information systems are assign

> This problem requires you to access PCAOB Auditing Standards (pcaobus.org) to answer each of the following questions. You can access those standards by viewing content found under the link “Standards.” Review PCAOB auditing standards related to the audit

> The following are misstatements that can occur in the sales and collection cycle: 1. A customer order was filled and shipped to a former customer, which had already filed for bankruptcy. 2. For a sale, a data entry operator erroneously failed to enter th

> The division of the following duties is meant to provide the best possible controls for the Meridian Paint Company, a small wholesale store: †1. Approve credit for customers included in the customer credit master file. †2. Input shipping and billing info

> The following are misstatements that have occurred in Fresh Foods Grocery Store, a retail and wholesale grocery company: 1. On the last day of the year, a truckload of beef was set aside for shipment but was not shipped. Because it was still on hand, the

> The following are internal controls related to various cycles. 1. Checks are signed by the company president, who compares the checks with the underlying supporting documents. 2. Sales invoices are matched with shipping documents by the computer system a

> Why is it important to distinguish the auditor’s assessment of the risk of material misstatement due to fraud from the assessment of the risk of material misstatement due to error?

> Indicate the four phases of the audit process. In which phase does the auditor perform tests of controls?

> What are the benefits derived from planning audits?

> Identify two examples of acts or behavior by CPAs that would be considered acts discreditable to the profession.

> An audit client is creating a Web-based sales ordering system for customers to purchase products using personal credit cards for payment. Identify three risks related to an online sales system that management should consider. For each risk, identify an i

> Assume that Xinran Wang, CPA, is using 5 percent of net income before taxes, current assets, or current liabilities as her major guideline for evaluating materiality. What qualitative factors should she also consider in deciding whether misstatements may

> Compare the risks associated with network systems and database systems to those associated with centralized IT functions.

> Identify the traditionally segregated duties in IT systems.

> Describe which two factors of the audit risk model relate to the risk of material misstatement at the assertion level.

> Explain how control risk assessment differs for an integrated audit versus a financial statement-only audit.

> What do auditing standards require the auditor to consider when assessing the risk of material misstatements in revenue?

> What is the primary focus of the monitoring component of internal control?

> What three auditor actions are required to address the potential for management override of controls?

> Describe the types of overall responses by auditors to address fraud risk.

> What is meant by the term quality control as it relates to a CPA firm?

> Assume that you are concerned that your client has recorded revenues that did not occur. What audit objective would you assess as having a high risk of material misstatement?

> Identify the management assertion and general balance-related audit objective for the specific balance-related audit objective: Read the fixed asset footnote disclosure to determine that the types of fixed assets, depreciation methods, and useful lives a

> Describe the types of information that should be included in the auditor’s working papers as evidence of the auditor’s fraud assessment procedures.

> The following is an example of a CPA firm’s quality control procedure requirement: “Any person being considered for employment by the firm must have completed a basic auditing course and have been interviewed and approved by an audit partner of the firm

> Explain why liquidity activity ratios ratios are useful to auditors.

> Describe examples of characteristics of transactions and balances that might cause an auditor to determine that a risk of material misstatement is a significant risk.

> Auditing standards require that the engagement team members engage in discussion about the susceptibility of the financial statements to the risk of fraud. How does this discussion relate to the required discussion about the risk of material misstatement

> Auditing standards require that the engagement team members engage in discussion about the risk of material misstatement. Describe the nature of this required discussion and who should be involved.

> Why is it important for the auditor to consider the risk of material misstatement at the overall financial statement level?

> This problem requires the use of ACL software, which can be accessed through the textbook website. Information about downloading and using ACL and the commands used in this problem can also be found on the textbook website. You should read all of the ref

> For how long does the Sarbanes–Oxley Act require auditors of public companies to retain audit documentation?

> What constitutes a significant risk?

> What types of inquiries should the auditor make when considering the risk of material misstatement due to fraud?

> How should the auditor consider risks related to revenue recognition when assessing the risk of material misstatement due to fraud?

> What are the five elements of an effective professional judgment process?

> What are the six elements of professional skepticism? Describe two of those six elements.

> What is the auditor’s responsibility when noncompliance with laws or regulations is identified or suspected?

> In recent years, globalization of business and factors such as technological disruption, tax reform, trade policies, and changing demographics in the workforce cause uncertainty and volatility in stock and bond markets. Why might it be important for you

> What four circumstances are required for a standard unmodified opinion audit report to be issued?

> Who is considered the client when auditing public companies?

> Describe some of the reasons why there have been calls for mandatory rotation of audit firms. How could an investor of a public company determine how long an audit firm has served as that company’s auditor?

> Describe what is meant by an audit procedure. Why is it important for audit procedures to be carefully worded?

> The Responsibilities principle requires that auditors be responsible for having appropriate competence and capabilities to perform the audit. What are the various ways in which auditors can fulfill this principle?

> Provide two examples of when an auditor might set a lower level of performance materiality for a particular class of transactions, account balance, or disclosure.

> List the four major evidence decisions that must be made on every audit.

> Describe how the use of audit data analytics might increase both the effectiveness and efficiency of the audit.

> Identify and explain factors that should keep the quality of audits high even though advertising and competitive bidding are allowed.

> Why is it important that an auditor develop an expectation of the account balance when performing substantive analytical procedures about the reasonableness of an account balance? What are the audit documentation requirements when performing a substantiv

> The client changed from FIFO to LIFO inventory valuation in the current year and reflected this change in their financial statements. How should this be reflected in the auditor’s report?

> What is the primary purpose of analytical procedures performed during the completion phase of the audit?

> Describe the information included in the opinion and basis for opinion sections in a separate audit report on the effectiveness of internal control over financial reporting. What is the nature of the additional paragraphs in the audit report?

> On February 17, 2019, a CPA completed all the evidence gathering procedures on the audit of the financial statements for the Buckheizer Technology Corporation for the year ended December 31, 2019. The audit is satisfactory in all respects except for the

> What are the purposes of the auditor’s responsibilities section in the auditor’s report? Identify the most important information included in the auditor’s responsibilities section.

> Distinguish among the following three factors impacting a loan interest rate: risk-free interest rate, business risk, and information risk. Which one or ones does the auditor reduce by performing an audit?

> Why might an organization seek the assurance of a CPA about information presented in the organization’s corporate sustainability report?

> Explain the auditor’s responsibility to consider compliance with laws and regulations. How does this responsibility differ for laws and regulations that have a direct effect on the financial statements compared to other laws and regulations that do not h

> Identify the four parts of the Uniform CPA Examination.

> How do the eight parts of a standard unmodified opinion audit report for nonpublic companies differ from those found in a qualified opinion report?

> Auditing standards have been criticized by different sources for failing to provide useful guidelines for conducting an audit. The critics believe the standards should be more specific to enable practitioners to improve the quality of their performance.

> Explain how audit risk and materiality are related and why they need to be considered together in planning an audit.

> Explain audit services, attestation services, and assurance services, and give examples of each.

> Assume materiality for the financial statements as a whole is $100,000 and performance materiality for accounts receivable is set at $40,000. If the auditor finds one receivable that is overstated by $55,000, what should the auditor do?

> Explain why there is an inverse relationship between planned detection risk and the amount of evidence an auditor collects for a specific audit objective.

> Assume a company with the following balance sheet accounts: You are concerned only about overstatements of owner’s equity. Set performance materiality for the three relevant accounts such that the preliminary judgment about materiality

> Diane Smith, CPA, performed tests of controls and substantive tests of transactions for sales for the month of March in an audit of the financial statements for the year ended December 31, 2019. Based on the excellent results of both the tests of control

> How might the performance of test of controls provide evidence related to the presentation transaction-related audit objective?

> Explain the relationship between the occurrence transaction-related audit objective and the existence and completeness balance-related audit objectives.

> What are the three categories of members under the AICPA Code of Professional Conduct?

> List the nine balance-related audit objectives in the verification of the ending balance in inventory and provide one useful audit procedure for each of the objectives.

> Identify risks for extensive IT-based accounting systems.

> Explain the relationship between the methodology for designing tests of controls and substantive tests of transactions in Figure 13-5 (p. 429) and the methodology for designing tests of details of balances in Figure 13-7 (p. 431). Figure 13-5: Figure