a) Discuss the procedures to be followed by you at the time of examining the evidences? b) How can you ensure the reliability of audit evidences?
Q: How much is the adjusted balance of cash on June 30? a. 34,890 b. 41,230 b. 58,920 d. 62,890
A: Introduction: A bank statement (also called an account statement) is a document (sometimes known as…
Q: The following data was taken from ledger account balances and supplementary data for the XYZ…
A: Sales is the revenue earned from sales of goods and services in the business. Net sales is the sales…
Q: The 2017 balance sheet of Kerber's Tennis Shop, Inc., showed long-term debt of $1.87 million, and…
A: Cash Flow From Operating Activities= Cash Flow From operating Activities Include the cash flow…
Q: Which investment method did Patrick use to compute the $286,570 income from O'Brien? Determine the…
A: 1.computation of income from O'Brien.
Q: Other comprehensive income includes all of the following, except: unrealized gains on available for…
A: Lets understand the basics. Other comprehensive income includes income which does not need to…
Q: The Arcade Company entered into a 10 year lease under which it made payments of R26 720 annually in…
A: As per IFRS 16, the single lease payment for the land and building should be allocated in the ratio…
Q: Logano Driving School's 2017 balance sheet showed net fixed assets of $2.4 million, and the 2018…
A: Net capital spending represents the amount recompensed by an entity in order to maintain its fixed…
Q: Prepare depreciation adjusting entries for each asset for the year ended December 31, 2021, assuming…
A: Introduction:- Depreciation is a non cash expenses. Depreciation is charged on fixed asset over a…
Q: Mountain Dental Services is a specialized dental practice whose only service is filling cavities.…
A: High-low method is used in costing to segregate fixed and variable costs. Following formula is used…
Q: Units of concrete panels produced and sold Sellling price Direct Materials (volume of concrete)…
A: Operating Income is the difference between the operating revenue and all the expenses related to…
Q: Illustration. The balance sheet of Mateo Roa on Oct. 1, 2021, before accepting Martin Penaco as his…
A: The investment by the partners in the partnership firm is recorded by debiting the assets invested…
Q: Break-Even Point Sheridan Inc. sells a product for $90 per unit. The variable cost is $50 per…
A: Breakeven point(in units)=Fixed cost/contribution per unit where contribution per unit=Sales…
Q: community is 6.5%, what was the selling price for the basketball before taxes?
A: The question is related to the sales tax so before moving into the question first we have to know…
Q: Arabian Gulf Corporation reports the following stockholders' equity section on December 31, 2020. -…
A: It refers to a modern accounting method which is used to record business transaction in a debit…
Q: .The following data were related to ABC Corp. COST…
A: The ending inventory can be calculated on the basis of the cost to retail ratio. It can be…
Q: Indicate whether each of the following costs incurred by a manufacturer would be considered a…
A: There are two type of cost-Product cost and period cost Product cost-these cost are directly related…
Q: 39. Peter and John, who share profits and losses equally, decided to liquidate their partnership…
A: Producers' finished goods are such total. There's no need for retailers to categorise or segment…
Q: Juan Dela Cruz, an entrepreneur, has sold 5,000 units of RCC Pipes for 600/unit. The following are…
A: Projected income statement is an income statement prepared based on the projections for a future…
Q: doing the records for a company for the last ten years. She was approached by the owner to create…
A: The answer has been mentioned below.
Q: Learning Task 2: Journalize the entries for the following adjustments on December 31, the ed of the…
A: Adjusting entries are the one which are prepared at the year-end for the transactions which are left…
Q: The following data were available for ABC Company, which uses perpetual system, at Dec 31, 20X2:…
A: Credit purchases means the goods bought from the suppliers on credit. In other words, the credit…
Q: (Guarantee by old partners in specific ratio). Antonio and Chekov were partners sharing profits in…
A:
Q: Michael Company acquired a depreciable asset at the beginning of 2020 at a cost of $30 million. On…
A: Lets understand the basics. As per IAS 36 "Impairment of assets", when carrying value of asset is…
Q: ABC Corporation’s CEO owns a condominium in Bahamas where top executives and their spouses stay,…
A: Here discuss about the details of taxation issues which are incurred for the benefits provided to…
Q: Plant assets are used in business and have useful lives that extend over more than one accounting…
A: Assets are the rights and resources being held by the business. These can be long term assets or…
Q: Can someone please explain how I answer this question? It's question number 3
A: As per 2022 table, CPP is 5.7% of gross pay subject to basic personal exemption of $ 3500 and the…
Q: Accounts Debit (OMR) Cash 120,000 Capital Prepaid insurance 5600 Salary expense 1000 Service Reveny…
A: Introduction: Income statement: All revenues and expenses are to be shown in income statement. It…
Q: Break-Even Sales Under Present and Proposed Conditions Portmann Company, operating at full…
A: Lets understand the basics. Break even point is a point at which no loss no profit condition arise.…
Q: On January 1, 20x9, Fairness Company sold a tract of land that was acquired years ago for P 3M.…
A: As per the below table, the CV of note on Dec 2010 is P 18,18,182 * Please note that the…
Q: What is the variable overhead spending variance for the product for November?
A: Spending variance is the variance which is used by the company and computed to know about how much…
Q: The closing entry process consists of closing the Retained Earnings account. all temporary accounts.…
A: Preparation of closing entries is a method used by the business entity to close its temporary…
Q: 49. The taxable income is a. P9,200,000 c. P8,200,000 b. P7,500,000 d. P7,430,000
A: Calculation of Taxable Income: Gross Income, Philippines = P10,000,000 Less: Allowable Itemized…
Q: counts Payable counts Receivable paid Insurance sh awing al assets are . $7,934 p. $3,947 $434 Fees…
A: Total assets are the value of everything a person has after all assets and obligations have been…
Q: Conspicuous Limo uses activity-based costing for its two models of stretch Hummer limousines: Big…
A: The activity rate is calculated on the basis of usage of various activities on the basis of various…
Q: related to cash? What are the most important assertions related to cash? How will auditors test…
A: Answer Audit of Cash Assertion to be examined 1. Existence :- To establish the existence of cash…
Q: community is 6.5%, what was the selling price for the basketball before taxes?
A: The sales tax means the tax that is charged on the selling price of the goods. It is an addition to…
Q: Maria Tallchief is a single taxpayer, age 27 (birthdate May 18, 1994) living at 543 Space Drive,…
A: A form that is used by a taxpayer to file his or her annual income tax return in the United States…
Q: In accounting for lease contracts, companies reporting under U.S. GAAP O are required to treat the…
A: ASC 842 is an accounting standard that deals with accounting of leases. Leases are two types.…
Q: Jameela Corporation reports the following stockholders' equity section on December 31, 2019. Common…
A: The treasury shares are the company's issued share that the company purchase from the market and…
Q: An earth quake damaged a warehouse of Kupal Girl Corporation On December 31, 2011. The entire…
A: Answer: Inventory lost =$2,275,920 computation of total credit sales during the year: Accounts…
Q: Sammy Joe's cash book (bank columns only) for the month of 2021 June was as follows: $ June 01…
A: The question is based on the concept of Financial Accounting.
Q: Friends Partnership has three partners. The balance of each partner capital is Alia $48.000, Mariam…
A: A partnership is a legally binding agreement between two or more people to run and operate a firm…
Q: If the beginning balance of retained earnings is $180,000, revenue is $85,000, expenses total…
A: Answer:- Retained earnings meaning:- The amount of net income which is generally left over for the…
Q: Joe Refreh Ltd. began with retained earnings of $400,000. The company earned $150,000 during the…
A: Retained earnings are accumulated net profits earned by an entity till date and forms part of…
Q: QUESTION TWO The trial balance as at 30 April 2016 of Timber Products Limited was balanced by the…
A: A suspense account represents the difference in the total debit and credit sides of a trial balance.…
Q: On June 1 of the current year, Pamela Schatz established a business to manage rental property. She…
A: The balance sheet is one of the financial statements of the business which represents the financial…
Q: The following information is available for ABC Co. Budgeted sales Gross profit as a percentage of…
A: With the given details, we need to calculate the amount paid to trade payable in the Month of June.…
Q: Gilford, Inc., uses a job order costing system. Costs going through the company's work in process…
A: The inventory accounts are classified as Work in process, finished goods inventory, cost of goods…
Q: What is the net income for the current year? During the year, Homo sold 100,000 shares with P20 par…
A: Net income for the current year This can be arrived using the Cash flow statement as follows:
Q: On April 1, 2022, Lansing Corporation opened for business and paid 600 in insurance to cover the…
A: Prepaid expenses are in the nature of current assets which will bring economic benefits to the…
Step by step
Solved in 2 steps
- Imagine Mr Mohammed Azam is a renowned auditor at Muscat in Sultanate of Oman. He conducts audit of Dry Dock Company S.A.O.C. He has prepared the audit report after completion of audit engagement; now, he is in the process of organizing the audit documentations to provide evidence in respect of audit procedure performed and relevant evidence obtained relating to transactions recorded in the financial statements. The auditor finalized the audit report on 1st June 2020. Based on the above information about audit documentation of Dry Dock Company S.A.O.C you are required to identify the date within which audit documentation must be completed. a. On or before 15th July 2020 O b. None of the options c. On or before 1st July 2020 d. On or before 15th August 2020You 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 6th January 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 likelihood of…You are an audit manager with UP-Wise & Associate; Chartered Accountants and Business Consultants. You have been assigned to the audit of Eastern Decors Ltd (ED), a long-established firm of event planning service in the city where your practice is located. The audit of the financial statements for the year ended 31st March, 2019 is due to commence shortly. The audit firm is aware that the client has received a loan from the bank in April, 2018 and that the bank will rely on the audited financial statements as part of the terms and conditions in the loan agreement. The partner in charge of UP-Wise & Associate has just visited the client and made the following notes during his trip: (i) The firm has a number of individual and corporate clients outside Accra and has invested heavily in recording and broadcasting equipment to allow some events to be broadcasted over the internet. This facility is now available at all events conducted in ED’s premises and is proving to be very…
- sSaleha was recently hired by the accounting firm of Haron & Associates. After two weeks of joining the firm, Saleha was sent to the first-year staff training course.The instructor asked her to prepare answers for the following questions:a. How does evidence relate to assertions and to the audit report?b. What are the characteristics of evidence should an auditor be concerned with when searching for and evaluating evidence? c.List and explain the objective and benefits of financial statement audit.Your client portfolio as an audit manager at CC & Co also includes TT Co which is a listed financial institution offering loans and credit facilities to both commercial and retail customers. You have received an email from the audit supervisor who is currently supervising interim testing on systems and controls in relation to the audit for the year ending 31 October 2018. The email gives the following details for your consideration: One of the audit team members, Jones, has provisionally agreed to take out a loan with Thomas Co to finance the purchase of a domestic residence. The loan will be secured on the property and the client’s business manager has promised Jones that he will ensure that she gets ‘the very best deal which the bank can offer.’ The payroll manager at TT Co has asked the audit supervisor if it would be possible for CC & Co to provide a member of staff on secondment to work in the payroll department. The payroll manager has struggled to recruit a new…Question 2 “It is the auditors’ responsibility to gather sufficient appropriate evidence to reach their opinion”. Discuss the above statement by explaining the differences between the evidence’s sufficiency and appropriateness. Your answer should include a discussion of TWO types of audit evidence. You are an audit manager of Earl & Co and are planning the audit of Darjeeling Co for the year ending 30 September 2020. The company develops and manufactures specialist paint products and has been a client of your firm for several years. During the year Darjeeling Co has spent $0·9m, which is included within intangible assets, on the development of new product lines, some of which are in the early stages of their development cycle. Additionally, as the company is looking to expand production, during the year it purchased and installed a new manufacturing line. All costs, incurred in the…
- You have recently been appointed as auditor to Johnson Plc; a company whose shares are traded on the Stock Exchange. The Directors of Johnson Plc have recommended that you perform the following services . (i) The statutory audit of the annual financial statements. (ii) Taxation services, and (iii) Consistency services in respect of the implementation of a new information technology system Your firm has not acted for Johnson Plc before but does act as auditor for one of the major competitors. Required. (a) Identify and explain the professional and ethical issues that should have been identified by your firm in relation to the provision of the services outlined above, and describe the safeguards that should be in place in order to address these issues. (Include citations to support work). (b) What are the fundamental principles of ethics? Briefly explain their meaning (Include citations to support work). (c) A client’s affairs should not be disclosed to third parties. However where a…You are the auditor in charge of the audit of Irene PLC, which has a 30 June year end. The subsequent events review for the year ended 30 June 2022 revealed that, on 1 August 2022, a receiver was appointed at a major customer. At 30 June 2022 that customer owed GHS 150,000 and goods costing GHS 200,000 made to that customer’s specification were held in inventory. Both these amounts are material.RequiredList the matters to which you would direct your attention in respect of the above in relation to the audit for the year ended 30 June 2022, if the audit report on the financial statements has not yet been written.For each of the following situations involving relations between auditors and the companies they audit, indicate whether it violates IFAC’s Code of Ethics for Professional Accountants and the rationale for the applicable guideline. a) Paul Asante, CPA, discloses confidential information in a peer review of the firm’s quality control procedures. b) Frank Smith, CPA, is auditing a company in Ghana, which has offered to send him and his wife on a holiday in Hawaii for two weeks. c) Tabula Gonzales, CPA, says in an interview in the local paper that Emilio Rios, CPA, misleads his clients about the quality of his audit work. Additional information: Please add references or citations.
- Chloe P. Araneta, CPA is an auditor for Delight, a large auditing firm in the country. She is assigned to audit the financial statements of Eala Corporation for the year ended December 31, 2022. Chloe plans to complete the field work and sign the auditor's report on April 12, 2023. Chloe is concerned about events and transactions occurring after December 31, 2022 that may affect the 2022 financial statements of Eala Corporation. 1. Describe the types of subsequent events that require Chloe's consideration and evaluation.2. What audit procedures should be performed by Chloe to gather evidence regarding subsequent events?(b) You are the audit partner in Jason & Associates. Jason & Associates have accepted a recent engagement for a retail company called, Food Co-op. You have obtained the Annual Financial Statements of Food Co-op and studied the opening balances. As part of the audit plan you have decided to place reliance on the work of the prior auditors. Explain what are the main procedures you would have to perform to place reliance on the work of the prior auditors, i.e. in this case the opening balances?You are now nearing the completion of the audit of Rooney Co Ltd for the year ended 31 December 2020. Draft financial statements have been produced. You have been given the responsibility of performing of a review of the audit files before they are passed to audit manager and the audit partner for their review. You have been asked to concentrate on the sources of the evidence obtained. While reviewing the working papers you noted that your junior officers have recorded the following sources of evidence:(i) Oral representation by management in respect of the completeness of sales where the majority of transactions are conducted on a cash basis.(ii) Year-end suppliers' statements (iii) Physical inspection of a non-current asset by an auditor One of your responsibilities is to act as a mentor to junior officers into the department Required : ISA 500 Paragraph 4 states that ‘’The objective of the auditor is to design and perform audit procedures in such a way as to enable the auditor to…