explain. If, after obtaining an initial understanding of a client's internal control, the auditor wishes to further reduce the assessed level of control risk relating to plant asset transactions, the auditor should next Make extensive substantive tests of plant asset balances. Establish the physical existence of current year additions. Complete the plant asset section of the internal accounting control questionnaire. Further test those internal control procedures relating to processing and recording plant asset transactions.

Q: How important is a purchases budget and how does it help managers run a company?

A: Purchase Budget shows amount of inventory that a company must purchase during each Budget period. It…

Q: Waterway Inc. declared a $76000 cash dividend. It currently has 2500 shares of 6%, $100 par value…

A: In case of cumulative preferred stock arrears of dividend is payable in the year in which dividend…

Q: In 1989 Tom died and provided in his will that certain assets with a Fair Market Value of $6,100,000…

A: On the death of a person, all the properties he has are subject to estate tax and inheritance tax.…

Q: April 2 Purchased $3,900 of merchandise from Lyon Company with credit terms of 2/15, n/60, invoice…

A: Business Translations: An economic event involving a third party that is documented in the…

Q: Victory Worship Partnership has the following account balances before liquidation (see attached…

A: As Given Before dissolution, Victory Worship Partnership had the following account balances. Some…

Q: On May 5, 2021, Christy purchased and placed in service a hotel. The hotel cost $10.8 million.…

A: A corporation does not record any profits from the a selling transaction under the cost recovery…

Q: The auditor assigned to audit the property, plant and equipment requested a schedule of property…

A: 1. Completeness assertions : This assertion asserts that  all the transactions are recorded in…

Q: On March 1, 2021, a Philippine company sold merchandise to a foreign customer in Singapore dollars…

A: Foreign currency transaction should be recorded using the exchange rate prevailing on the date of…

Q: January 1, 2019,

A: ET Mags Inc. should record the lease payments in the leasee's accounts. The current lease is a…

Q: On January 1, 2020, Blue company purchased X company for P25 Million. At such date, X Company had…

A: Answer:-  Definition of meaning:- Goodwill is a kind of an intangible asset generally related with…

Q: If they divide the profits 2:4:6, how much should B receive?

A: 1. As no rate of interest on capital is mentioned in the question.          So, no interest on…

Q: A, B, C and D are known robbers in their community. They created a Jewelry-on-hand Partnership so…

A: In any partnership, there are two or more partners who are responsible for running the business…

Q: True or False: Borrowing money and repaying debt re Select one: True

A: Net Worth The sum of all non-financial and financial assets minus the sum of all outstanding…

Q: Double-entry accounting requires that debits must always equal ____________. Group of answer choices…

A: Solution: Double entry accounting system is the accounting system which ensures that every financial…

Q: A capitalist partner is not allowed to enter into a new partnership if it is a competing business.…

A: Diligence – The obligation of the partner is to act diligently in her decisions on behalf of the…

Q: sing the following accounts and balances, prepare the stockholders' equity section of the balance…

A: Stockholders' equity is the shares issued by the company that shows shares issued, paid-in capital,…

Q: Analyze the balance sheet

A:

Q: On April 2 a corporation purchased for cash 6,000 shares of its own $12 par common stock at $27 a…

A: Treasury stocks are repurchased shares of the company. The firm can reissue these stocks at a…

Q: Hendry Limited produces a mini-kitchen called Town Cook, which is enjoying extensive popularity…

A:

Q: Marco is a medical doctor. Inday’s total gross receipts from year 2020 amounted to Php 4,250,000.00…

A: Income tax payable= taxable income * tax rate taxable income= Gross receipts+ Non operating income =…

Q: Other matters to which the auditor may wish to refer in an Other Matter(s) paragraph but which are…

A: The Other Matter paragraph is the audit report is written to communicate all the necessary matters…

Q: Identify which category of shareholder's equity is affected by the item and briefly explain how it…

A: Treasury Stock or Securities or reacquired shares or treasury Shares are one which are repurchased…

Q: If operations for an accounting period resulted in revenue earned of $200,000 and expenses incurred…

A: Net income is calculated after deducting all the expenses from the total revenue. Total expenses…

Q: (b) Explain the reasons why Carad Co would be interested in the material price planning variance and…

A: The variations between predicted and actual results of a manufacturing process or other commercial…

Q: . X assigned his partnership shares to Y. X did not get the consent from the other partners but he…

A: Comment-  We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Santa Maria College, Inc. a proprietary educational institution, spent P 20,000,000 for the…

A: Building is an asset and must be depreciated as per the method employed by the owner of the Asset.…

Q: 24.  Which is TRUE? S1: Representation expense of a seller of goods is subject to limitation of 5%…

A: Representation expense of a seller of goods is subject to limitation of 0.50% of net sales. In…

Q: explain each choices. Reportable conditions are matters that come to an auditor's attention and that…

A: Internal  Control: An entity's board of directors, management, and other people are the ones who…

Q: Restricted retained earnings by making an entry equal to the cost of treasury shares purchased.

A: Shareholder Equity- The amount invested by shareholders in a specific organization is referred to as…

Q: Independently considering each of the following statements regarding Form W-2 (Wage and Tax…

A: Answer:-  W-2 form meaning:- A basic tax form that shows an employee's total salary earned and taxes…

Q: Compute the common-size income statements for the 2017-2020 periods

A: Common size income statements is the income statement which is prepared by the company with the aim…

Q: Journalize the entries required on each date.

A: In the given question Bonneau corporation Declares a cash dividend of $100,000 on July 1 ( date of…

Q: CFAS Company issued 200,000 shares of P5 par value at P10 per share. On January 1, 2022, the…

A: Under the cost method, the purchase of treasury stock is recorded by debiting treasury stock account…

Q: True or False: Borrowing and repaying debt principal does not impact net worth. Select one: O True…

A: Introduction: The net worth of a firm is that the total of its assets minus its liabilities as…

Q: Sarah G. Company is under court-supervised liquidation due to its insolvency. The court appointed…

A: The estimated recovery percentage of unsecured creditors without priority is calculated by dividing…

Q: 10 In a liquidating distribution Ann receives cash of $3,000, inventory in which the partnership's…

A: A corporation is liquidated by selling its assets and using the proceeds to pay creditors &…

Q: Q2) 2. The price of Al-Saad company's shares is $30 per share, and it plans to pay cash dividends of…

A: A perfect capital market is one where there is no Arbitrage Opportunity. So after the dividend…

Q: Supposed you want to buy a used car but your savings is not enough. To do this, you borrow P60,000…

A: Loan amortization is the process of scheduling out a fixed-interest rate loan into scheduled…

Q: ustomizing cost

A: Cost accounting is one of the accounting system that is used by the businesses. The main purpose of…

Q: On January 1, 2018, RRR Partnership entered into liquidation. The partners' capital balances on this…

A: The partnership comes into existence when two or more persons agree to do the business and further…

Q: Bruce Corporation makes four products in a single facility. These products have the following unit…

A:

Q: Please solve part B

A: In case of liquidating contribution, partner's basis must be reduced to zero in all cases. Cash,…

Q: On September 30, 2020, Peace Frog International (PFI) (a U.S.-based company) negotiated a two-year,…

A: Introduction: Borrowing costs are the interest payments on a loan or mortgage. It is the amount paid…

Q: During the year of 2021, Daniels corporation collects all of the Accounts Receivable and sells the…

A:

Q: On December 31, 2021, the company presented the following information: Ordinary share capital, P50…

A: Quasi re-organization is a process of removing the retained deficit of a company by revaluing its…

Q: GENERAL LEDGER ACCOUNT TITLE     CASH                                                     ACCOUNT…

A: Cash has a beginning debit balance of $50,000. Another debit in the cash is of $12,000. Total debits…

Q: On January 1, 2019, Dance Training Co entered its second year of operations. Dance Training Co…

A: The income statement is prepared to record the revenues and expenses of the current period.

Q: Use the following Unadjusted Trial Balance for Monroe Entertainment Company for questions 44 - 49:​…

A: Total expenses = Wages Expense + Insurance Expense

Q: Negotiations on a new contract have started. The contractor has 500 employees, the contract is 2.5%…

A: The correct answer for the above mentioned question is given in the following steps for your…

Q: 28.  S1: Fringe benefit that is exempt from fringe benefit tax is likewise exempt from any other…

A:

Audit Procedures

Audit Procedures are methods and techniques performed by the auditor to determine the quality of financial information of clients, thereby expressing an opinion on true & fair view of financial statements and entity position. They are identified and applied at the planning stage of audit after determining audit objectives, scope, approach, and risk assessment.