CHAPTER 17 COMPLETING THE AUDIT ENGAGEMENT Answers to Review Questions 17-1 A contingent liability is defined as an existing condition‚ situation‚ or set of circumstances involving uncertainty as to possible loss to an entity that ultimately will be resolved when some future event occurs or fails to occur. FASB ASC Topic 450‚ “Contingencies‚” classifies uncertainties into three categories: 1. Probable: The future event is likely to occur. 2. Reasonably possible: The chance of the future
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Report the observations to the engagement committee and seek their advice on whether the engagement should be expanded for the environmental audit. D. Document the observations and report them to the environmental safety department. Determine if their response will be timely‚ and follow-up to determine if they have taken timely action. The chief audit executive was reviewing recent reports that had recommended additional engagements because of risk exposures to the organization. Which of the
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responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with approved standards on auditing in Malaysia. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures
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the following statements is not true? The answer is B‚ Balance-related audit objectives are applied to both beginning and ending balances in balance sheet accounts. The reason this is the right answer is because the way audits are preformed‚ balance-related audit objectives are almost always applied to the ending balance sheet accounts. It never applies to the beginning balance in the balance sheet accounts. (Page 158) 8. Audit evidence has two primary qualities for the auditor; relevance and reliability
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Chapter 14 Audit of the Sales and Collection Cycle Key objectives: 1. Identify the accounts and classes of transactions in the sales and collection cycle. 2. Describe the business functions and related documents and records in the sales and collection cycle. 3. Understand internal control and design appropriate tests of controls and substantive tests of transactions for sales. 4. Understanding the accounting and controls for sales returns and allowances. 5. Understand internal
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Final Review Questions Chloe Granahan 1. Assume that the audit team notes the client has made a significant change in its product line which requires that new equipment be purchased. Which of the following would be of greatest concern to the auditor? A. Inappropriate book value of new equipment. B. Impaired value of new equipment. C. Impaired value of old equipment. D. Inappropriate depreciation calculation for new equipment. 2. A. B. C. D. Audit procedures should be proportional to which of the following
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MEMOIRE DE FIN D’ETUDES AUDIT DES STOCKS DANS LE SECTEUR DE LA DISTRIBUTION DU GPL DEDICACES Je dédie ce présent travail de recherche A mes chères parents‚ à mes chères grands-parents‚ à mon frère Hicham à Monsieur Biad et à la bibliothèque de l’ISCAE. JUIN 2005 -1- MEMOIRE DE FIN D’ETUDES AUDIT DES STOCKS DANS LE SECTEUR DE LA DISTRIBUTION DU GPL REMERCIEMENTS Au prime abord je tiens à présenter un grand hommage à la personne de Mr M. A. EL MACHAT‚ l’associé principal du cabinet
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13-22 a. (2) A test of control. b. (2) Relative effectiveness and efficiency of the tests. c. (1) Substantive tests. d. (4) IV‚ I‚ III‚ and II 13-23 a. (2) Tests of controls include observations of the proper segregation of duties. b. (3) Tests of controls. c. (1) A reasonable degree of assurance that the client’s internal controls are operating effectively on a consistent basis throughout the year. d. (3) Reperformance. 13-24 1. Foot the accounts payable trial balance and compare
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Marketing Audit Starbucks Stores R. J. Yung Marketing Management March 13‚ 2006 Executive Summary Since its foundation in 1971‚ Starbucks has been working uncompromisingly to achieve the company objective of becoming the world’s leading coffee brand. Having gone through various stages of growing pain‚ today the Company is operating with over 10‚000 stores in 37 countries. Starbucks’ success was mostly a direct result of its aggressive expansion plan‚ that consequently turned the Starbucks
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Dealers Pg.8 Scope of the Report Pg.9 Audit Type Pg.9 Timing Pg.9 Personnel Pg.9 Audit Methodology Pg.10 Characteristic of the audit Pg.10 Marketing Environmental – Macro Pg.10 Marketing Environmental – Micro Pg.11 Marketing Strategy Audit Pg.11 Marketing Objectives Pg.11 Strategy Pg.11 Marketing Organisation Audit Pg.11 Formal Structure Pg.11 Functional
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