Instructions In not less than five sentences, choose ONE FS item and explain what kind of audit procedure the auditor should do to address its corresponding FS assertion.
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A: Accrued expense refers to the amount that has been incurred by the company but has not yet been paid…
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A: Accumulated depreciation is the total of all the depreciation that has been charged to the asset…
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A: Option (d) is correct bother are true 1) Two methods of allocating joint costs to main products…
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A: Weighted Average Number of Shares The Calculation of Weighted average number of shares which can be…
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A: Indirect Cost are the cost which are not directly attributable to the production of the goods or…
Q: Q6. On April 1, Year 6, Bob the Builder traded in an equipment with a book value of $2,000 (initial…
A: DEPRECIATION MEANS MONETARY VALUE OF AN ASSETS DECREASES OVER TIME DUE TO USE OF WEAR AND TEAR OR…
Q: 6. What is the depreciation expense for the year ended December 31, 2021?
A: Depreciation refers to the reduction in the value of asset due to its normal use and tear and wear.…
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Q: BC Corp purchased goods on account from XYZ Corp for P10,000. Terms: 10%, 2/10, n/30 FOB Shipping…
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Q: Abra Ltd sold an item of plant to its subsidiary Cadabra Ltd on 1 January 2017 for $50 000. The…
A: Consolidation elimination entries are those entries which are used to remove from the consolidation…
Q: Lessee enters into a 10-year lease of property with annual lease payments of P50,000, payable at the…
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Q: FIERY Company's December 31 year-end financial statements had the following errors: December 31,…
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Q: In 2021, Southwestern Corporation completed the treasury stock transactions listed below.…
A: Introduction: The cost method is one of the most conservative methods of accounting for investments…
Q: what are the pro and cons for traditional budgeting?
A: Traditional Budgeting Traditional budgeting which provides the budgetary requirement of the business…
Q: Explain the components of the income statement and the interrelationships between the income…
A: The income statement of a corporation primarily shows the net result of the firm's activities over a…
Q: (d) Based on (c), what will be the ending balance in AFDA? What is net realizable value of A/R?
A: Accounts Receivables - Accounts Receivables are the amount unpaid by the customer for the service…
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A: Introduction:- The following Qualitative characteristics of accounting information as follows…
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A: Here discuss about the details of the characteristic of the taxes as well. There are some district…
Q: The inventory records of Sixto Corp at Dec 31, 20X1 show a balance of P260,000. Also the following…
A: Inventory is one of the important current asset of the business. It includes inventory of raw…
Q: le 7,000,000 000 000 4,
A: Profit on Sale of Investment= Sales Proceeds - Cost of Investment = 1250,000-(1750,000-1000,000)…
Q: In January 2013, Edi Thomas and George Lopez agreed to produce and sell chocolate candies under the…
A: Given that, Contribution by thomas ; Cash = P580,000 Contribution by lopez ; Building = P480,000…
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A: Solution:- a)Determine the standard unit materials cost per pound for a standard batch as follows…
Q: 7. When the residual value of plant and machinery has drastically changed, the entity should a.…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
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Q: Under the Government Accounting Manual, what method is used in computing the ending inventory of…
A: Under government accounting manual,ending inventory of materials & supplies there are different…
Q: The balance in the supplies account before adjustment on December 31, 2007 is $3,000. The amount of…
A: The supplies expense for the period = supplies account before adjustment on December 31, 2007 -…
Q: 4. Evaluate the firm's short-term solvency for 1998 by computing: a. Working Capital b. Current…
A: Solution:- a)Calculation of working capital as follows under:- Working capital is the difference…
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Q: The answer provided is not correct, please provide the correct value
A: Free Cash Flow Free Cash flow which can be determined by using the amount of net operating cash flow…
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A: Degree of operating leverage (DOL): DOL reflects variable and fixed cost relationship of an…
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A: FIFO Method: The accounting system known as "First In, First Out" (FIFO) requires that the assets…
Q: Fulton Family Farms produces $190 worth of corn and sells it to Apna Popcorn Co. Apna Popcorn Co.…
A: >Value addition is done by the businesses in various form.>A manufacturer, for example, added…
Q: Can someone help me with the part b and c please?
A: Direct material usage variance is otherwise called as Direct Material Quantity variance. It is a…
Q: On March 31, 2021: Job #678 was the only job in process with accumulated costs of…
A: Finished Goods Inventory refers to Cost of Goods completed during the year from Production but not…
Q: Consider a fixed-payment security that pays $250 at the end of every year for eight years. If the…
A: Present value = Amount to be received annually X Present value of annuity of $ 1 at 3% for 8 years
Q: Q1 a) Prepare the flexible budget analyzing and commenting efficiency and price variances (Favorable…
A: As per Bartleby guidelines, in case of multiple questions we are only allowed to answer the first…
Q: "S Projects in thousands А A B C D 400 596 496 544 130 200 160 190
A: DISCOUNT PAY BACK PERIOD IS THE CAPITAL BUDGETING TECHNIQUE WHICH IS BEEN USE FOR THE SELECTION OF…
Q: Elite Realty acts as an agent in buying, selling, renting, and managing real estate. The unadjusted…
A: Note: Hi! Thank you for the question, As per the honor code, we are allowed to answer three…
Q: How much is the cumulative effect of this change that should be reported in the income statement for…
A: The question is related to Change in Accounting Policy. Accounting Policy are the principles and…
Q: Which of the following is the primary element that distinguishes accounting for corporations from…
A: A partnership firm is a constitution wherein two or more individuals come together and join hands to…
Q: Suppose that today's price of ABC stock is $100 and it is known that price moves up or down by a…
A: Given here annual variance of the underlying stock prices is 36%, Volatality is square root…
Q: On January 1, 2018, CRIMSON Company purchased machineries for $10,560,000 and depreciated it by the…
A: As per IAS 8, Accounting policies,Changes in accounting estimates and errors A change in useful life…
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A: The contribution margin can be defined as the difference between casts that are variable and the…
Q: Problem 32: Pam and Drix formed a partnership in 20x1 to operate a bookkeeping services. Pam…
A: Total Month Pam Drix jan 1 150000 30000 feb 1 149000 29000 march 1 148000…
Q: 10.) How much is Accumulated Depreciation per year? 11.) How long is the estimated useful life of…
A: Straight line depreciation is a common method of depreciation where the value of a fixed asset is…
Q: When employees have a conflict of interest between their personal compensation and provision of…
A: Management and owners of a company are different. Management is compensated in order to run the…
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- Refer to Exhibit 2.5 and answer the following questions. a. (Sections 101, 104, and 105) How does the establishment and operation of the PCAOB help to ensure quality external audits? How will audit firm inspections and investigations by the PCAOB help ensure high audit quality? b. (Sections 201-203) How do Sections 201-203 address audit ()r independence concerns? c. (Section 206) What is a cooling-off period, and how does it address auditor independence concerns? d. (Section 301) How do the audit committee requirements help ensure effective corporate governance? e. (Sections 302 and 906) How do the officer certification requirements help to address the risk of fraud in publicly traded organizations? What is the likelihood that a CFO who is committing fraudulent financial reporting would sign the certification falsely, and what are your reactions to that possibility? f. (Section 401) How does this section relate to the Enron fraud? g. (Section 404) How do the management assessment and audit or attestation of internal controls contained in this section help to address the risk of fraud in publicly traded organizations? h. (Section 407) Why is it important that at least one member of the audit committee be a financial expert? What are the financial reporting implications if the audit committee does not have any individuals serving on it who possess financial expertise? i. (Section 802) How does this section relate to the Enron fraud?_____ means the application of audit procedures to less than 100% of the items within an account balance or class of transactions to enable the auditor to obtain and evaluate audit evidence. a. Inspection b. Observation c. Audit sampling d. Analytical ProcedureAudit situations 1 through 10 present various independent factual situations an auditor might encounter in conducting an audit. List A represents the types of opinions the auditor ordinarily would issue, and List B represents the report modifications (if any) that would be necessary. For each situation, select one response from List A and one from List B. Select, as the best answer for each item, the action the auditor normally would take. Items from either list may be selected once, more than once, or not at all. Assume the following: The auditor is independent The auditor previously expressed an unqualified opinion on the prior-year financial statements unless otherwise noted Only single-year (not comparative) statements are presented for the current year (unless otherwise stated) The conditions for an unqualified opinion exist unless contradicted in the factual scenario The conditions stated in the factual scenario are material No report modifications are to be made except in…
- Assume that an auditor has identified a number of CAMs. A. what are CAMs? b. For each CAMs, what should the auditor include inthe audit reportMatch five of the items (a-i) with the definitions provided below (1-5): Audit programs Audit procedures Audit objectives Analytical procedures Budgets Competence of evidence Relevance if evidence Persuasiveness of evidence Sufficiency of evidence _______1. The pertinence of the evidence to the audit objective being tested _______2 Detailed instructions for the collection of a type of audit evidence. _______3. Written records of the client’s expectations for the period. _______4. Detailed instructions for the entire collection of evidence. _______5. The degree to which the auditor is convinced that the evidence supports the audit opinionFor each of the procedures described in the table below, identify the audit procedure performed and classification of the audit procedure using the following: (Each of the "Audit Procedures" and "Classification of Audit Procedure" may be used once, more than once, or not at all.) Audit Procedures: Classification of Audit Procedure: (1) Analytical procedure (9) Substantive procedures (2) Confirmation (10) Test of controls (3) Inquiry (4) Inspection of records or documents (5) Inspection of tangible assets (6) Observation (7) Recalculation (8) Reperformance Procedure Audit Procedure Classification of Audit Procedure a. Requested responses directly from customers as to amounts due. b. Compared total bad debts this year with the totals for the previous two years. c. Questioned management about likely total uncollectible accounts. d. Watched the accounting clerk record the daily deposit of cash receipts.…
- For each of the procedures described in the table below, identify the audit procedure performed and classification of the audit procedure using the following: (Each of the "Audit Procedures" and "Classification of Audit Procedure" may be used once, more than once, or not at all.) Audit Procedures: Classification of Audit Procedure: (1) Analytical procedure (9) Substantive procedures (2) Confirmation (10) Test of controls (3) Inquiry (4) Inspection of records or documents (5) Inspection of tangible assets (6) Observation (7) Recalculation (8) Reperformance For each of the procedures described in the table below, identify the audit procedure performed and classification of the audit procedure using the following: (Each of the "Audit Procedures" and "Classification of Audit Procedure" may be used once, more than once, or not at all.) Audit Procedures: Classification of Audit Procedure: (1) Analytical procedure (9) Substantive…Your must be four typed pages. a) What do you understand by the concept of audit and other assurance engagements? b) What is the difference between externalk audit and internal audit? (Give at least six differences){Auditing} 22. ________________involves checking the arithmetical accuracy of a source of document and accounting record. a. Observation b. Inspection c. Enquiry d. Computation
- Describe SIX audit risks, and explain the auditor's response to each risk, in planning the audit of Blister Pharmaceuticals Co. Prepare your answer using two columns headed Audit risk and Auditor's response respectively.how do auditor gather audit evidence during the period of covid 19 ? 700 wordsAuditors use different types of audit procedures to gather the evidencenecessary to conclude that the risk of material misstatement for each relevant assertion has been reduced to an acceptably low level. List eight different types of procedures auditors can use during an audit of financial statements, and give an example of each.