Week 5 Solutions
Week 5 HW Solutions 13-22 a. (2) b. (2) c. (1) d. (4) 13-23 a. (2) b. (3) c. (1) d. (3)
* Discussion Questions and Problems 13-24 a. | b. | 1. TD of B 2. TD of B 3. AP 4. T of C 5. ST of T 6. AP 7. TD of B 8. T of C 9. TD of B 10. T of C 11. T of C | RecalculationDocumentationAnalytical proceduresDocumentationDocumentationAnalytical proceduresDocumentationInquiry and observation ConfirmationDocumentationInquiry |
13-25
a. | b. | c. | d. | e. | f. | 1. Acquisition and Payment | Recalculation | Substantive | S T of T | Posting and summarization | N/A | 2. Acquisition and Payment | Documentation | Test of control or Substantive | S T of T | Occurrence | N/A | 3. Acquisition and Payment | Documentation | Substantive | T D of B | N/A | Cutoff | 4. Sales and Collection | Inquiry | Substantive | T D of B | N/A | Realizable value | 5. Inventory and Warehousing | Analytical procedure | Substantive | A P | N/A | Realizable value | 6. Capital Acquisition and Repayment | Confirmation | Substantive | T D of B | N/A | Existence
Accuracy | 7. Acquisition and Payment | Recalculation | Substantive | T D of B | N/A | Detail tie-in |
13-33 a. Factors which could explain the difference in the amount of evidence accumulated in different parts as well as the total time spent on the engagement are: 1. Internal control 2. Materiality of the account balance 3. Size of the populations 4. Makeup of populations 5. Initial vs. repeat engagement 6. Results of the current and previous audits 7. Existence of unusual transactions 8. Motivation of the client to
* Discussion Questions and Problems 13-24 a. | b. | 1. TD of B 2. TD of B 3. AP 4. T of C 5. ST of T 6. AP 7. TD of B 8. T of C 9. TD of B 10. T of C 11. T of C | RecalculationDocumentationAnalytical proceduresDocumentationDocumentationAnalytical proceduresDocumentationInquiry and observation ConfirmationDocumentationInquiry |
13-25
a. | b. | c. | d. | e. | f. | 1. Acquisition and Payment | Recalculation | Substantive | S T of T | Posting and summarization | N/A | 2. Acquisition and Payment | Documentation | Test of control or Substantive | S T of T | Occurrence | N/A | 3. Acquisition and Payment | Documentation | Substantive | T D of B | N/A | Cutoff | 4. Sales and Collection | Inquiry | Substantive | T D of B | N/A | Realizable value | 5. Inventory and Warehousing | Analytical procedure | Substantive | A P | N/A | Realizable value | 6. Capital Acquisition and Repayment | Confirmation | Substantive | T D of B | N/A | Existence
Accuracy | 7. Acquisition and Payment | Recalculation | Substantive | T D of B | N/A | Detail tie-in |
13-33 a. Factors which could explain the difference in the amount of evidence accumulated in different parts as well as the total time spent on the engagement are: 1. Internal control 2. Materiality of the account balance 3. Size of the populations 4. Makeup of populations 5. Initial vs. repeat engagement 6. Results of the current and previous audits 7. Existence of unusual transactions 8. Motivation of the client to