Auditing 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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Study Questions 6 1. What is the role of the pharmaceutical industry in the health care system? The pharmaceutical industry plays a pivotal role in the health care system. Without the pharmaceutical industry‚ health care would not evolve into what it is today. The reason why it plays such an important role in health care is because it helps address challenges associated with modern day diseases and illnesses. It controls prevent‚ treat‚ and cure many types of diseases. In support‚ according to
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Contemporary Auditing Chapter 5 – Comprehensive Question 5-30 (Assertions) In planning the audit of a client’s financial statements‚ an auditor identified the following issues that need audit attention. Please only write in the associated assertion 1. Valuation or allocation 2. Completeness 3. Existence and occurence 4. Completeness 5. Rights and obligations 6. Completeness 7. Valuation and allocation 8. Existence and occurence 9. Presentation and disclosure 10. Valuation or allocation
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Chapter 19 Comprehensive Problem 83 Identify significant tax and non tax issues of concerns that may differ across entity types. Limited Partnership: Tax issues and concerns: Partners will pay taxes on profits they receive from their investments. Tax liability is determined by tax basis base on original investments. In this case Dawn is 30%‚ Linda is 30% and Mike is 40%. Partners need to pay taxes on income whether they receive this income or reinvested back into the business. General or active
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Fields Maria Gomozova Sviatlana Lizun Patricia Vaz Megan Wark Very good! 100% +2 cb 6C-1 Summary of Audit Sections Section Purpose Content 1 Objectives of the Engagement To describe the services that are to be rendered to the client (KCN). The objectives include: an audit of KCN’s financial statements for the year ended 12/31/20X5 and to issue a letter of compliance with covenants of the client’s letter of credit agreement
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492 Resource: Modern Auditing Prepare written answers to the following assignments * Ch. 16: Comprehensive Question 16-26 Evaluation of Internal Controls – Raw Materials and Supplies Inventory * Ch. 16: Comprehensive Question 16-29 Computer-Assisted Substantive Tests for Inventory ______________________________________________________________________________ Comprehensive Question 16-26 Evaluation of Internal Controls – Raw Materials and Supplies Inventory a. Identify
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1. What is the process the board members use to make their decisions? This question is important because you do not want the board to make decisions based solely on their own opinions or their values. You want to know that they have sat down and actually thought about the process and how it will affect everyone. It is important that they have looked at the pros and the cons of the situation. 2. Is each staff member educated on different areas of the company? Like knowing about each department
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Textbook DC 6-8 You have been assigned to the audit of the financial statements of Office Moving and Storage Limited (OMS) for its year ending December 31‚ 20X2. The company started 10 years ago and is in the business of moving furniture and equipment for company offices across Canada‚ and also providing storage for companies requiring that service. The company is owned by three shareholders who are all involved in operating the company. OMS owns four properties outside of major urban centres;
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the Impact of Management Integrity on Audit Planning and Evidence Objective This research is done to assess the correlation between management integrity and RMM‚ audit planning and misstatement detection‚ which leads to analysis of the impact of management integrity information on audit conduct. Motivation Some cases of failures such as Enron and Sarbanes-Oxley have led public in general requiring auditors to be more careful in conducting their audit tasks‚ especially in terms of audited
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BU 122 Assignment 6 BYP 22-2 TBoillard (a) The variable costs per unit are: Cost of goods sold ($600‚000 ÷ 200‚000) = $3.00 Selling expenses ($140‚000 ÷ 200‚000) = .70 Administrative expenses ($40‚000 ÷ 200‚000) = .20 Total
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