Week1_Gregory

Mr. Henry Dominic, Director of Dominic CPA Review Schools was considering the use of a new practice at the end of the two-week introductory portion of his class. The set was designed to meet two principal objectives. First, he hoped that it would serve as a screening device for identifying those students who had failed to grasp some of the more elementary concepts of financial accounting. Second, the set was designed to serve as a vehicle for introducing several new concepts which would be covered in more depth in the next section of this course. The beginning of the year balance sheet for the green Ville Company was as follows: Cash.. Inventory.. ASSETS Total current Assets.... Property, plant and eqpt.... Less: A/D PPE.. Net Fixed Assets.. Total Assets............ FINANCIAL REPORTING June 1 GREEN VILLE COMPANY Balance Sheet As of January 1, 2021 P25,000 10,000 35,000 15,000 5,000 10,000 P45,000 EQUITIES Accounts payable......... .P10,000 Total Current Liabilities..... 10,000 Capital…

Controls and Processes Review the article entitled, "Who's in Control of the Ark? A Study of Internal Controls in Operating and Auditing A Small Preschool." Explain two internal controls the school is implementing well, two internal controls the school could improve on, and two internal controls that could open the door to fraud. Make sure all internal controls are from the accounting information system (AIS) framework. Be sure to respond to at least one of your classmates' posts.

Star audit firm have started the annual audit of Carrefour Muscat. The auditors have a long meeting with their management. Their target is to conduct the audit during one week. The auditors have started their work. Identify which of the following is related to their audit process. Identifying the risk Conduct interviews Create audit procedure and plan Discussing corrective action plan

FOR THIS QUESTION IN THE ETHICAL THREAT BOX COULD YOU WRITE DOWN WHAT THREAT IT IS FOR EXAMPLE, SELF INTEREST THREAT, FAMILARITY THREAT, MANAGMENT THREAT, ETC.    PART B - QUESTION KLB plc is one of your audit clients for the previous 8 years. The following information are available. The audit team included a manager and two juniors. The client was asking to finish the audit work early this year otherwise they are going to change the auditor next year. One-week bonus was paid to the audit team through their payroll as the client was happy that they finished auditing 5 days earlier than the planned audit time. The audit team got 10% discounts on the client’s products. The same discount is normally given to the client’s staff. Your firm offered this client a bookkeeping service for this year. To reduce the audit cost, the engagement letter was not updated this year as there is no big changes in the audit tasks from last year. Audit fees are based on a percentage of the net profit before…

Please help... :( thank you in advance!!!

Fast plz Star audit firm have started the annual audit of Carrefour Muscat. The auditors have a long meeting with their management. Their target is to conduct the audit during one week. The auditors have started their work. Identify which of the following is related to their audit process.      Conduct interviews     Discussing corrective action plan          Create audit procedure and plan      Identifying the risk

Write a memo to the CFO, Hans, informing him about the coming public school Annual Audit. Discuss the importance of the audit and some of the things the auditors will review during their field work. Your response should be approximately one page.

Q: Applied with audit risk model for planning Identify and explain SIX audit risks that exist in the audit of Hope-well Limited?

Cases: 1. Staff accountants’ working papers are reviewed within one week of being completed. 2. The partner in charge annually selects at random five engagements and evaluates whether quality control procedures were followed. 3. No uncertainty must exist as to whether a new client is a going concern. 4. To be in-charge auditor on audits involving more than four hundred work hours, staff must have previously worked on an engagement in the industry. 5. New staff accountants must be eligible to sit for the CPA exam. 6. In-charge accountants must have passed the CPA exam. 7. As they are issued, new PASs are discussed with staff.8. A technical assistance staff is available to answer accounting and auditing questions. 9. Staff must sign a statement annually that indicates their stock ownership.Required: a. State the quality control element on which the policy relates b. State the objective/purpose of each policy.

Your firm is the auditor of Happy Days, an entity which provides hospitality packages atracecourses around a single country. The managing director of Happy Days has suggested thefollowing to your managing partner:i. All members of the audit team to be offered two free tickets to a major event at theracecourse of their choice,ii. last year’s audit senior should be seconded to the organization for a six-month period.The current year’s audit is not yet underway,iii. iii. the firm also provide internal audit services. RequiredDiscuss which, if any of the above proposals would be acceptable to your firm and (if not statewhy not), and set out the main safeguards, if any, which would be required.

John Josephs an audit manager for Tip, Acanoe & Tylerto, was asked to speak at a dinner meeting of the local Small Business Administration Association. The president of the association has suggested that he talk about the various phases of the audit process. John has asked you, his trusted assistant, to prepare an outline for his speech. He suggests that you answer the following. Required: A) List and describe the various phases of an audit. B) Describe how audit procedures designed for one purpose might provide evidence for other purposes. Give an example. C) One of the phases involves understanding an entity's internal control. Why might the members of the association be particulary interested in the work conducted by auditors in this phase of the audit?

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Identify 3 different factors that may have an impact on the risk of performing the audit (i.e. inherent risk, control risk, etc) and how the factor identified impacts the risk of the audit (i.e. increases/decreases risk). One of your firm's longtime audit clients owns a group of companies and recently added a new addition to the group - Stained Glass Inc - which your firm will be auditing for the first time this year. The manager of Stained Glass Inc, Jennifer, is relied upon by the owner to run the day-to-day operations of the company with minimal oversight. Jennifer's annual bonus is based on a percentage of pre-tax net income per the audited F/S. Jennifer has hired her sister to perform all of the accounting for Stained Glass Inc as Jennifer does not know much about accounting. Additionally, you are told that the bank relies on the audited F/S of the group to make lending decisions.

Ja'Niya, a recent college graduate has started working for Cline CPA Firm. Ja'Niya is currently taking part in her first audit, and is discussing the management letter with her supervisor, Jamie. Jamie has just explained why the CPA firm sends management letters to its audit clients, however Ja'Niya is still confused as to the purpose of the letter and asks Jamie to provide some examples of items that might be in the letter. Which of the following would represent examples of items that an auditor might apprise management of in a management letter? • Generally accepted auditing standards require drafting and transmittal of the management letter by the external auditors for all public and private clients. Once the management letter has been received by management, the auditors' requests written assurances from management confirming the effectiveness of internal controls in the noted areas. • The external auditing firm might use a management letter to communicate important matters and…

Conclude and explain, with reference to the IPPF (code of ethics orstandards) whether it is permissible or not permissible. Provide reason for your conclusion; 1.Mpho Xhosa, an internal auditor of Packing Supplies (Pty) Ltd has recently completed an internal audit engagement to evaluate the marketing department. Based on the experience gained on the marketing engagement, Mpho spends several hours one Sunday working asvolunteer consultant to a local hospital that intends conducting an evaluation of its marketing function to attract sponsorship.

9. Please help ASAP!!!

Accounting & Finance - Auditing  Question 6: Your audit firm has an advertising policy that any audit process will not take more than 20 days for any client. You start reviewing the audit files of your client ALB plc which you audit for eight years and you find the following notes. The audit team included a manager who owns 1% of the ALB’s shares. The executive partner believes that the 1% is too small and it will not affect the manager experience. Your firm offered this client a bookkeeping service for this year. One of the audit team received a high salary offer to be appointed in the client’s internal audit department as a head of department. The finance director was recently working as an auditor in your audit firm. ALB plc intends to increase its capital by issuing more shares in the stock market and the financial manager is asking your firm to manage this process.  Required:  Identify and explain FIVE ethical threats which arise from the above actions and for each…

Audit Overtime. The performance evaluation of all accountants is based in part on theirability to do audit work efficiently and within the time budget planned for the engagement.New staff accountants, in particular, usually have some early difficulty learning speedywork habits, which demand that no time be wasted. Cynthia Elizabeth started work for Julieand Jacob CPAs in September. After attending the staff training school, she was assignedto the Rising Sun Company audit. Her first work assignment was to complete the extensiverecalculation of the inventory compilation using the audit test counts and audited unit pricesfor several hundred inventory items. Her time budget for the work was six hours. She startedat 4 P.M. and was not finished when everyone left the office at 6 P.M. Not wanting to stay downtown alone, she took all necessary audit documentation home. She resumed work at8 P.M. and finished at 3 A.M. The next day, she returned to the CPA offices, put the completed…

CASE STUDY: HARRISONS LTD You are a new staff member of Monet & Associates, a mid-sized accounting firm and have been assigned to an engagement team that is conducting the financial report audit for Harrisons Ltd (Harrisons). The engagement team, under the guidance of the engagement partner, Vince Mater, is currently performing a preliminary risk assessment of the audit client. The following documents have been provided to you: Memo from audit partner, Vince Mater, dated 6thJanuary 2020 which includes a summary of the initial audit procedures undertaken by the engagement partner for the 31 December 2019 audit. A relevant industry outlook report provided by the Australian Construction Industry Forum published on 7 November 2019.   REQUIRED: You have been asked to assess the inherent risk of the client and perform preliminary analytical procedures as part of the audit planning process in obtaining an understanding about the client’s business and indicate where there is an increased…

The ethical reflection assignment required you to watch three videos about Barry Minkow. Which of the following is false with respect to Barry Minkow? Multiple Choice He is currently the CFO of Lennar Homebuilders After his first release from prison he started the Fraud Discovery Institute and worked with the FBI He eventually became an evangelical minister, but went back to prison again after embezzling money He was convicted at age 22 for the ZZZZ Best Fraud

Ben & Cat is a company which work in the hotelry industry. The company year end is 31 October 2018. You are an audit manager at KLONE, an audit organization, and you are now arranging the audit of Ben & Cat for the first time because Ben & Cat is a new customer to your business. Last week, you joined a planning meeting with the audit engagement team and finance director. Outline the 5 sources of audit evidence the auditor can use as part of riskassessment procedures.

Magi Chen is the managing director of Sun Construction Pty Ltd, a family owned business that provides construction services. As Magi is interested in purchasing some new construction equipment’s for her business, she has approached her local bank for finance. The bank has asked that Magi provide an audited financial statement to assist them in considering her loan application. Magi has approached your audit firm for this service and you have been allocated the task of auditing Sun Construction for the year ended 30 June 2019. You have undertaken a preliminary review of the business and determined that a substantive testing approach would be suitable and appropriate. You are currently preparing an audit program for the revenue cycle. The following information has been obtained from your review:• Magi usually works 120 hours a fortnight. Part of this time is spent travelling between different clients and is not charged to the clients. The remaining time is charged at $60 per hour,…

Nancy Watkins has been working for five (5) months as a staff member for Acme, CPAs. She iscurrently working on the audit of Tampa Manufacturing Company. She is on a four-person auditteam that is supervised by senior auditor James King.At the end of the first day of audit work, James tells the audit team that they will all have to workextra hours each day. These extra hours are to be on the audit team members’ own time to makesure that the audit comes in on budget. The team was asked to come in early, take short lunchesand stay late each day.Nancy remembered reviewing the company’s policies during her orientation. There is a policyagainst working hours and not charging them on the time report. It is considered a violation ofAcme’s employment policy. In addition, she knows that seniors are paid bonuses instead ofovertime.When discussing this issue with the other auditors on the team, Nancy finds out that James doesthis all the time. (Apparently, several other audit seniors follow the…

You are the audit manager in the audit firm Price water coopers.One of your audit clients is Salam Fresh  who are specialising in the manufacture and supply of food products. Salam Fresh have been an audit client for a period of 5 years and you have been the manager of the audit firm since 3 years. Now you are planning for the audit for the year ending 31 December , 2021 and conducted an initial meeting with the directors of the company and 0btained the following inofrmation: Salam Fresh is attempting to obtain a listing in a recognized stock exchange. For that, as a requirement, the company has organized an internal audit committee, even though no any further action has been taken. The public is unaware about the plan of listing of the company in stock exchange. You have been asked to prepare the financial statements of the company, as in previous years. As the auditors of the company, you are invited to attend an evening reception in a hotel, where the company will be presenting the…

Four friends who are auditing students have a discussion. Evans says that the primary responsibility for the adequacy of disclosure in the financial statements and footnotes rests with the auditor in charge of the audit field work. Mercy says that the partner in charge of the engagement has the primary responsibility. Abdul says the staff person who drafts the statements and footnotes has the primary responsibility. Peter contends that it is the client’s responsibility.

Phillip Dale is a recent employee of RMGT Audit Firm. A new client Juicy Juice Limited has approached RMGT for the audit of its annual reports and Phillip was asked to start the preparation of the audit plan. Phillip knows only too well the importance of audit planning. It involves many considerations that help to develop more efficient engagements and provides auditors with important risk management techniques. Juicy Juice Limited operates in many overseas countries. The company employs over 2000 employees and is known for providing many great benefits for its employees. One of Juicy Juice’s biggest assets is its inventory as the company offers a large variety of products throughout the many overseas countries in which it operates. The company also regularly purchase shareholdings in other companies. The previous auditors of Juicy Juice have stated that the previous year’s audit had revealed extensive material misstatements. Questions A. Discuss FOUR (4) of the…

QUESTION 1 You just got an internship at City Auditors Pty Ltd as an intern auditor. Your company secured a tender to audit PJ fashions, a small clothing shop in town. Due to its size and the volume of their sales, City Auditors assigned your supervisor and you to audit the new client. You did all that needs to be done from understanding the business and the industry and all the preparation before starting the audit which is suppose to take one week. You started with the audit and everything is going smoothly until the last day. You agreed with your supervisor that you document your findings the following day after the audit. As you reached the office, your supervisor received a call that there is a family emergency that he has to attend for a week. He has politely asked you to draft the report and that you should take it to the senior audit to sign it off before presenting it to your client. List and describe five (5) items you will include in the report and their importance.…

Your small business client, Phillip’s Computer Repair Shop, is experiencing financial difficulties and has to lay off one of its four employees in the accounting area. Phillip has asked you to determine what duties should be assigned to the three remaining employees—Abigail, Bryan, and Chris—to maintain the best separation of duties.Required:Assign the following 10 duties to each of the three employees.a. Reconcile bank statement.b. Open mail and list checks.c. Prepare checks for Phillip’s signature.d. Prepare payroll checks.e. Maintain personnel records.f. Prepare deposit and take to bank.g. Maintain petty cash.h. Maintain accounts receivable records.i. Maintain general ledger.j. Reconcile accounts receivable records to general ledger account.

: Use the six-step approach to resolve the ethical dilemma in the case below.   Mr. Ferdinand Okada, a senior audit manager for Dreams and Solaire, CPAs, has recently been informed that the firm plans to promote him to partner within the next year or two if he continues to perform at the same high-quality level as in the past. Mr. Ferdinand excels at dealing effectively with all people, including client personnel, professional staff, partners and potential clients. He is excited about his future with the firm.   Mr. Ferdinand has recently been assigned to the audit of Resorts International, a large wholesale company that ships goods throughout the world. It is one of Dreams and Solaire’s most prestigious clients. During the audit, Mr. Ferdinand determines that Resorts International uses a method of revenue recognition called “bill and hold” that has recently been questioned by the SEC. After considerate research, Mr. Ferdinand concludes that the method of revenue recognition is not…