Auditing‚ 12e (Arens) Chapter 1 The Demand for an Auditing and Assurance Profession 1.1 Identify the components of an audit and explain why there is a demand for audits 1) Which of the following illustrates the definition of auditing with respect to the evidence analysis process? A) accumulation and evaluation of evidence about balance sheet accounts B) learning about different types of computing technology‚ such as mainframes C) writing an operational audit report that is tailored to the client’s
Premium Auditing Financial audit Audit
Philadelphia‚ PA 19104-2875 Douglas Ziegenfuss College of Business and Public Administration Old Dominion University Norfolk‚ VA 23529 dziegenf@odu.edu November 28‚ 2010 We thank the Institute of Internal Auditors for access to the Global Auditing Information Network (GAIN) database. We thank Chris Hogan‚ Barry Brian‚ and seminar participants at the University of Tennessee for their helpful comments. a Corresponding author The Impact of Internal Audit Function Quality and Contribution on
Premium Auditing Audit Internal audit
Chapter 13 Auditing the Inventory Management Process Answer Key True / False Questions 1. The "cradle-to-grave" cycle for inventory begins when goods are purchased and stored and ends when the finished goods are shipped to customers. TRUE AACSB: Analytic AICPA BB: Industry AICPA FN: Decision Making Blooms: Remember Difficulty: 1 Easy Learning Objective: 13-01 Develop an understanding of the inventory management process. Topic: Overview of Inventory Management Process 2. A receiving
Premium Inventory Audit Inventory turnover
Chapter 14 Auditing the Revenue Cycle |Learning Check | 14-1. a. The revenue cycle includes the activities involved in the exchange of goods and services with customers and the realization of the revenue in cash. b. The classes of transactions in this cycle for a merchandising company are sales‚ sales adjustments‚ and cash receipts. The primary accounts affected by these transactions are sales‚ accounts receivable‚ cost of sales‚ inventory‚ cash‚ sales
Premium Accounts receivable Invoice Revenue
Social Auditing: Environmental Ethics Issues Characters: George Holt financial director Kim Hopkins internal auditor Senior Management Brian Henderson professional accountant (friend) Phone ringing by George to Kim George: hello!!!! Kim Kim: Yes‚ sir!!! George: Kim‚ I would like to highlight to you‚ that our management board meetings is schedule to next week Monday. Kim: Humm!!! George:I want you to make audit report on the company’s affaires….including graphs and figures…with full
Premium Financial audit Auditing Internal control
Question 1: Name two cases in which companies have committed frauds by misstating inventory. Crazy Eddie and Goodner Brothers case are the good example for the inventory fraud cases. Question 2: What makes the intentional misstatement of inventory difficult to detect? When you have the most senior management of the company‚ particularly its financial management‚ consciously setting out to fool the auditors‚ to hide information from them‚ as they testified in the Monus trial‚ it’s very hard to
Premium Auditing Financial audit Audit
CHAPTER 1 REVIEW QUESTIONS 1.2What qualities must an ‘assurer’ have in order for you to feel that their statement has high credibility? An assurer must have the knowledge and expertise to assess the truth and fairness of the information being presented by the preparers. Auditors of financial reports need to be trained accountants with detailed knowledge about the complex technical accounting and disclosure issues required to assess the choices made by the financial report preparers
Premium Auditing Auditor's report Audit
The North Face‚ Inc. - Individual Case Synopsis: The North Face‚ a company that has always found a way to sell their product to unique customer‚ didn’t get to where they are today easily. Presently owned by Vanity Fair‚ The North Face was started by Hap Klopp in the mid 1960s with the mission of providing a ready source of hiking and camping gear to customers. Today‚ they offer products ranging from outdoor chairs to backpacks. As the company began to grow‚ so did the goals set by management
Premium Generally Accepted Accounting Principles Revenue recognition Auditing
Multiple Choice Questions From CPA Examinations 7-29 a. (2) b. (1) c. (4) d. (1) 7-30 a. (3) b. (3) c. (4) 7-32 1. (5) inquiry of client 2. (7) observation 3. (1) physical examination 4. (2) confirmation 5. (6) reperformance 6. (2) confirmation 7. (3) documentation 8. (4) analytical procedures 9. (5) inquiry of client 10. (6) reperformance 11. (7) observation 12. (1) physical examination 13. (4) analytical procedures 14. (3) documentation 15. (5) inquiry of client 16. (4)
Premium Invoice Contract Audit
MEMORANDUM Date : November 10‚ 2010 To : Alchemy Corp. (Aren’t we addressing this memo to our parent co.‚ Alchem Corp.?) From : External Audit Team Subject: Internal Control Weakness and related fraud risk After much research and time spent on understanding the inner working of Alchemy Inc.‚ we have found some internal control weaknesses that could lead to potential fraud. Our audit procedures are designed to address internal control weaknesses and subsequent fraud risks
Premium Auditing Audit External auditor