Chapter 1 - Multiple Choice Questions 1. Why do auditors generally use a sampling approach to evidence gathering? A. Auditors are experts and do not need to look at much to know whether the financial statements are correct or not. B. Auditors must balance the cost of the audit with the need for precision. C. Auditors must limit their exposure to their client to maintain independence. D. The auditor’s relationship with the client is generally adversarial‚ so the auditor will not have access
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VINAND PETROLEUM CASE Financial statements could be examined with varied degrees‚ as part of the client acceptance procedures Paige CPA got to perform a horizontal and vertical analysis‚ and financial ratio analysis of Vinand Petroleum financial statements. These procedures are not as in depth as other procedures used by auditors on financial statements‚ but these procedures may show areas of concern for auditors. From 2006 to 2007‚ Vinand’s long term debt tripled and its interest expense paid for
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the extent of liability the officers hold. Are police officers held accountable for their misjudgments or reckless behavior when they are at fault? This paper exams relevant cases in which police officers have been penalized or relinquished from negligent allegations. Additionally‚ details on the penalties of negligence from police officers will be provided in this essay. Police Negligence and Liability 3 Introduction Many law enforcement agencies
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De Leon‚ Mary Joy P. #10 January 7‚ 2014 BSA 3-14 ACCO 3116 Prof. Flora Briones Chapter 20 SUBSTANTIVE TESTS OF TRANSACTIONS AND BALANCES 1. What is a cutoff bank statement? How is it used by the auditor? Cut off bank statement is the statement of transactions occurred for the 7 to 14 consequent days from the closing date of financial statement like Dec 31 provided by banks. It is used by the auditors to check the accuracy of checks outstanding and deposits in transit in accounting
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i)Alf has a direct relationship with the employer as he is one of the employees of Skimpy PLC and the employer owes him a duty of care. However‚ the company hasn’t guarded the machinery which should be one of their primary duties as it was seen in the case Close v Steel Co of Wales where all dangerous parts of machinery should be securely fenced according to the section 14 Factories Act 1961. All workers will need safety at work and the Health and Safety at work Act 1974 will ensure all employees
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QUESTION 1 (16 marks) Cash is the most vulnerable asset to audit. Answer the following questions; a) What are the three assertions an audit needs to establish? (6 marks) SOLUTION: Cash balances include cash on hand and at bank. Cash on hand includes undeposited receipts and petty cash. Cash at bank includes cash held in current and savings accounts which is available on demand. Unlike any other account balance‚ cash may be either an asset or a liability. The latter arises where the bank with
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THE ROLE OF AUDITORS IN FINANCIAL CRISIS Submitted by Syed Ijtaba Ali Bukhari In the Fulfillment for the Degree of B.Com Honors LAHORE SCHOOL OF ACCOUNTANCY & FINANCE THE UNIVERSITY OF LAHORE (2013) The University of Lahore ------------------------------------------------- Lahore School of Accountancy & Finance Supervisory Committee We the Supervisory Committee‚ certify that the contents and the form of thesis submitted by Syed Ijtaba Ali Bukhari have been found satisfactory and recommend
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that the effects of likely misstatements‚ individually or in the aggregate‚ cause the financial statements to be materially misstated‚ the auditor should request management to eliminate the misstatement. . . . If the auditor concludes that the effects of likely misstatements‚ individually or in the aggregate‚ do not cause the financial statements to be misstated‚ he or she should recognize that they could still be materially misstated because of further misstatements remaining undetected.
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Case Study #2 1. Political – In class the major political topic that we focused on was possible affects on the industry if immigration laws became stricter. This industry is highly dependent on cheap labor. If all of a sudden there were not enough workers in the industry there would not be enough chicken available to meet the demand. Economic – Evident from the case‚ the chicken market is heavily influenced by currency fluctuation. This is because 15% of the total poultry production is exported
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|Case 4.6 | |Instructional Notes | | | |Phar-Mor‚ Inc.:
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