In performing risk assessment procedures for property, plant and equipment, an auditor may inquire of the client personnel which of the following questions? a. Is depreciation calculation and recording automated?
Q: 7. Refer to the problem below and compute for the Shareholder's Equity at December 31, 2021. * The c...
A: Calculation of shareholders equity. Adjustment a):- Preference retired- 4000*280= 1,120,000. Rem...
Q: A company sold 8,000 units of its signature product for the calendar year ended December 31, 2020. E...
A: The provision for warranty is created to record the estimated warranty Expenses for the period. The ...
Q: The finance director of the Bethandy Independent School District is making preliminary estimates of ...
A:
Q: a) Determine the depreciation of the first year of equipment used for research. The initial investme...
A: Modified Accelerated Cost Recovery System is the current tax depreciation system in the United State...
Q: In the course of our audit of Ettedanreb Corporation’s cash in bank for the year ended December 31, ...
A:
Q: You audited the financial statements of PIS Corp. for the first time in 2022. The company started it...
A: Solution Working note- Year 2020 2021 2022 Unadjusted 104000 140000 160000 B-Omission of prep...
Q: Why do payers nevertheless persist in using shared savings components of alternative payment models?
A: Alternative payment methods are defined as the payment method for goods or services that are not mad...
Q: Which of the following includes only financial budgets?A. capital asset budget, budgeted income stat...
A: Budgets are the forecasts or estimates that are made for future period of time. Process of making an...
Q: The following information was provided by a company regarding its currently maturing obligations as ...
A: Current liabilities (CL) refers to the term of accounting which states that all the business liabili...
Q: When sales price increases and all other variables are held constant, the break-even point will ____...
A: Break even point refers to the sales level at which the entity's total revenue equals its total cost...
Q: Compute the PI statistic for Project Q if the appropriate cost of capital is 12 percent. (Do not rou...
A: Profitability Index: The profitability index (PI) is a metric used to assess the desirability of a p...
Q: The following costs were incurred in March: Direct materials = Php1,950,000 Direct labor = PhP1,20...
A: Prime costs include direct material costs and direct labor costs
Q: $320 m $280 m $300 m
A: Given : The Initial cost of the machine is $300,000. The New machine depreciates in 5 years MACRS ra...
Q: Post. Date Account/Explanation Ref. Debit Credit January 03 to record purchase of 3,000 units of inv...
A: LIFO = Last in first out Under LIFO method of inventory management : The units purchased / bought in...
Q: Carla Vista Co. accepts from Gates Stores a $4,400, 4-month, 9% note dated May 31 in settlement of G...
A: Journal entries are used to keep record of the financial transactions. Your entries are entered into...
Q: Consider the financial statements alongside the notes presented by Simple Things Industries and prep...
A: The question is related to Cash Flow Statement. The Cash Flow Statement is summary of cash receipts ...
Q: vardhaman traders purchased a machinery on 4.4.2019 at a price of rs 250000 and paid rs50000 on the ...
A: Discuss the concept of charging depreciation through the WDV method. WDV means written down value ...
Q: John's Tree Service depreciation for the month is $500. The adjusting journal entry is: O A. Depreci...
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in...
Q: Pls answer this question with solutions. SENTIENT AWARE Co. is engaged in logistics services. During...
A: Provision is created for the net estimated amount of payment to be made for anticipated expenditure.
Q: Nevada Corporation has 68,200 shares of S25 par stock outstanding that has a current market value of...
A: Introduction: Stock split: Stock split means splitting of its face value in to parts. The number of ...
Q: sing the moving average - perpetual inventory method; compute for the units unsold and its total...
A: Solution Concept Under moving average perpetual inventory method , the inventory is updated on a reg...
Q: Which of the following is a conversion cost?A. raw materialsB. direct laborC. sales commissionsD. di...
A: Conversion costs seem to be the expenses of converting raw resources into finished goods. In cost ac...
Q: Question One : define inventory costing methods and compare between them in term of cost of goods so...
A: Note: Hi! Thank you for the question As per the honor code, We’ll answer the first question since th...
Q: On December 31, 2019, Mason Company made following proper year-end adjusting entries: 1. Prepare jou...
A: Journal entry shows the recording of transactions and every transaction have a dual impact that is.,...
Q: A new project is being planned for a study period of 8 years. It will require P250,000 for the start...
A: The yearly effective interest rate is a rate of interest calculated using a variety of observations ...
Q: March 1, 2021, a company issued a four-year, P3,000,000 face value, 11% term bonds for P3,197,877. T...
A: The bonds are issued at premium when market rate is lower than the coupon rate of bonds payable.
Q: Ruvi and Patrick are partners in a merchandising business. During 2021, they withdrew their salary a...
A: Owner's Equity refers to sum of Beginning capital, Additional investments and share of Income and Mi...
Q: Raven Inc. sells a single product for $51. Variable costs include $28.23 for each unit plus a $9 sel...
A: Contribution margin percentage = ( Selling price - Variable cost ) / Selling price Variable cost wil...
Q: Exclusive Souvenirs Hut does customize, hand-crafted memorabilia for hotels, in which each batch of ...
A: Job costing is customer specific and is used when the products are heterogeneous
Q: Kayak Co. budgeted the following cash receipts (excluding cash receipts from loans received) and cas...
A: January February March Beginning Cash Balance $ 40,000 $ 40,000 $ 69,746 Ca...
Q: Boss Sporting Goods, a retail sportswear company, purchased merchandise of $500 on account from Awes...
A: The freight charges are the part of material cost and should be included in the cost of the material...
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of ...
A: Information given in the question is as follows: Sales $ 30,000 Variable expenses 16,500 Cont...
Q: ontier Corp. sells units for $40, has unit variable costs of $12, and fixed costs of $133,000. Front...
A:
Q: Depletion On January 2, 2019, Whistler Company purchased land for $430,000, from which it is estimat...
A: Depletion expenditure is the cost associated with natural resources (such as oil, fossil fuels, and ...
Q: a) Determine the depreciation of the first year of equipment used for research. The initial investme...
A: Purchase price of Equipment: $4.2 million Useful life: 6years. Residual value $341 thousand
Q: On January 1, 2010, Peter Company purchased 80% of the common stock of Pan Company for P316,000. On ...
A: You have posted multiple questions. so only the first three interlink parts of the first questions a...
Q: Dawson Company’s balance sheet information at the end of 2019 and 2020 is as follows: Fill in the bl...
A: Assets = Total liabilities + total shareholders' equity Total liabilities = Assets - Total sharehold...
Q: On January 5, 2022, a company received a P5,000,000-complaint from one of its employees who suffered...
A: As per the provisions of standard accounting principles, the contingent lia...
Q: Mark Company acquired 90 percent of Angel Company on January 1, 2011, for P468,000 cash. Angel’s sto...
A: The question is related to the Consolidation. The details are as under:- Mark Company Parents Holdi...
Q: ABD Company manufactures wooden rocking chairs. ABD identified the following three material costs in...
A: Indirect material cost is the cost of materials used in production that is not directly traceable to...
Q: Hamlet House makes portable garden sheds that sell for $1,800 each. The tax rate for the company is ...
A: The break even sales are the sales where business earns no profit no loss during the period. The con...
Q: my wc Information pertaining to Noskey Corporation's sales revenue follows: November 2021 (Actual) $...
A: A cash budget is a forecast of a company's free cash flow over a given time period. This budget is u...
Q: 9. The Standard requires every stock corporation to disclose the amount of unrestricted retained ear...
A: Retained earnings is the company's Cumulative earnings of net profit and held for future use. Retain...
Q: he following costs were incurred in February: Direct materials = PhP1,950,000 Direct labor = P...
A: Prime cost consists of direct material cost, direct labor cost & directly chargeable expenses. I...
Q: Please answer Cash Budget To prepare a master budget for April, May, and June, management gathers t...
A: A cash budget is the estimation of all the future receipts and payments of cash and the balance call...
Q: On January 1, 2020, Nun Company had ordinary and preference shares outstanding, The incorporators or...
A:
Q: Discuss how the lease liability would be measured at lease inception.
A: Lease Liability is the present value of the financial obligation of the lease for the lease payments...
Q: Which of these statements is not one of the financial statements?A. income statementB. balance sheet...
A: The financial statement, often known as the final account, depicts the organization's financial perf...
Q: Madtack Company's beginning and ending inventories for the month of November are: November 1 Novembe...
A: Total manufacturing costs = Direct material used + Direct labor costs + Manufacturing overhead appli...
Q: CFAS Corporation provided the following information from their financiat statements Dec. 31. 2021 De...
A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for you...
In performing risk assessment procedures for property, plant and equipment, an auditor may inquire of the client personnel which of the following questions?
a. Is
b. Is there periodic physical count and tagging of property, plant and equipment? Is the result of the count reconciled to ledgers and general ledgers?
c. Both a and b.
d. Neither a nor b.
Step by step
Solved in 2 steps
- In performing risk assessment procedures for property, plant and equipment, an auditor may inquire of the client personnel which of the following questions? a. Is depreciation calculation and recording automated? b. Is there periodic physical count and tagging of property, plant and equipment? Is the result of the count reconciled to ledgers and general ledgers? c. Both a and b. d. Neither a nor b. Group of answer choices a c b dIn performing risk assessment procedures for property, plant and equipment, an auditor may inquire of the client personnel which of the following questions? A. Are depreciation policies in accordance with applicable financial reporting framework? B. Are disposals of PPE properly utilized, removed from records including depreciation, and recorded in correct accounting period? C. All of the choices D. Are all PPE , including finance leases, properly authorized, recorded in accordance with the capitalization threshold (ex. 10,000) and in correct accounting period?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.
- In performing risk assessment procedures for property, plant and equipment, an auditor may inquire of the client personnel which of the following questions? A. Are all property, plant and equipment purchases, including finance leases, properly authorized, recorded in accordance with the capitalization threshold (e.g., P10,000) and in correct accounting period? B. Are depreciation policies in accordance with applicable financial reporting framework? C. All of the choices. D. Are disposals of property, plant and equipment properly authorized, removed from records including depreciation, and recorded in correct accounting period?In the examination of property, plant, and equipment, the auditor tries to determine all of the followingexcept theA. Effectiveness of the internal control structureB. Authorization of property abandoned during the yearC. Presence of an insurance policy related to property, plant, and equipmentD. Availability of company’s depreciation policyE. None of them1) The auditors analyze repairs and maintenance expense to: a)determine that plant & equipment accounts are not understated. b)determine that all maintenance items are recorded. c)determine that plant & equipment accounts are not overstated d)determine that maintenance expense amounts are authorized. 2)In auditing valuation of property, plant and equipment when its value is impaired, the auditors should: a)recalculate the depreciation expense on the item. b)recompute the net book value of the item. c)vouch the purchase of the item. d)evaluate the valuation model used for the item. 3)Which of the following best describes why auditors audit leased assets in conjunction with the audit of property, plant & equipment? a)Management may choose to lease assets rather than buy them. b)Leased assets have a higher risk of misstatement. c)Most leased assets should be capitalized.d)Repairs and maintenance expense is affected by leased assets. 4)Which of the following best…
- 16. In performing risk assessment procedures for property, plant and equipment, an auditor may inquire of the client personnel which of the following questions? Group of answer choices Are depreciation policies in accordance with applicable financial reporting framework? Are disposals of property, plant and equipment properly authorized, removed from records including depreciation, and recorded in correct accounting period? Are all property, plant and equipment purchases, including finance leases, properly authorized, recorded in accordance with the capitalization threshold (e.g., P10,000) and in correct accounting period? All of the choices.A weakness in internal control over recording purchased equipment may cause the auditor to: a. Review the subsidiary ledger to ascertain whether depreciation was taken on each item of equipment during the year. b. Inspect certain items of equipment in the plant and trace those items to the accounting records. c. Trace additions to the "other assets" account to search for equipment that is still on hand but no longer being used. d. Select certain items of equipment from the accounting records and locate them in the plant. e. Review salvage value estimates for reasonableness.Describe common substantive procedures used to audit a client’s property, plant, and equipment. How is depreciation audited? How are intangible assets audited?
