ns. During this year's annual financial audit, the external auditors noticed unusually large gaps in dates of the captured transactions being copied to the audit files. Baker Manufacturing management informed the auditors that the incre
Q: Pitfeld Sound Center paid 200.000 tor a group purchase of land, bulding, and equipment A the time of…
A: Cost of the Land = Total amount paid x Market value of the Land / Total market value of the assets…
Q: 1. A company uses the indirect method to determine its cash flows from operating activities. Use the…
A: Introduction: Statement of cash flows: All cash in and out flows are shown in cash flow statements.…
Q: On August 1, 20Y7, Rafael Masey established Planet Realty, which completed the following…
A: Since you have posted a question with multiple parts. we will be answering you first three subparts…
Q: What is the Company's Fixed Overhead Cost per unit? What is the Company's Operating Income…
A: Fixed overhead cost per unit: It is the part of fixed cost allocated to the units while calculating…
Q: TASK A. Problem Solving. Analyze the given problem and perform the required tasks in the worksheet…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Simpson and Homer Corporation acquired an office building on three acres of land for a lump-sum…
A: Lets understand the basics. When land, building and furniture purchased cumulatively in single price…
Q: cual Inventory Using Weighted Average ning inventory, purchases, and sales for WCS12 are as follows:…
A: The cost of goods manufactured (COGM) is the sum of the cost of direct labor used, the cost of…
Q: Victoria Company produces two products, X and Y, which account for 60 percent and 40 percent,…
A: The break even sales are calculated as fixed cost divided by contribution margin ratio. Break even…
Q: What level of sales would generate a net income of $4.2m for the following year, knowing that…
A: Net sales revenue Net sales equals total revenue minus appropriate sales returns, allowances, and…
Q: Assets Cash Liabilities and Equity Accounts Payable Wages Payable Income Tax Payable Notes Payables…
A: Note:- Since you have posted a question with multiple sub-parts, we will solve the first three…
Q: Fiona Sporty uses a purchases journal, a cash payments journal, a sales journal, a cash receipts…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: Year 1 Sales $161,120 Cost of Goods Sold 105,035 SG&A 42.957 Depreciation 6,687 Operating Income…
A: Debt would be defined as the sum owing for borrowed cash. The lender accepts to lend cash to the…
Q: Which of the following is not considered to be an analytical procedure?
A: Answer: Comparisons of financial statements accounts with source documents
Q: What are The challenges and strategies of organisational budgeting?
A: Organizational Budgeting: There are many types of organizational tools that are used for planning…
Q: Fiona Sporty uses a purchases journal, a cash payments journal, a sales journal, a cash receipts…
A: >Transactions are first of all recorded in a journal as they occur. >Some entities prepare…
Q: The bank statement for Farmer Co. indicates a balance of $7,735.00 on June 30. After the journal…
A: Bank reconciliation will reconciles bank balance with balance as per books of accounts.
Q: Management of Great Springs Bottled Water Company has asked you, the controller, to develop a…
A:
Q: Lancelot Group of Companies would like to estimate its cost function for proper cost management…
A: cost function is a function that uses the formula in order to predict the cost that will be…
Q: 1. Consider each of the following points of view and comment on how each point is valid and how each…
A: Corporate refers to the form of business that is identified separate from its members and has all…
Q: December 31 2021 2020 Assets Current assets: Cash Accounts receivable $ 273,440 85,400 105,000…
A: The cash flow statement records the cash transactions incurred during period classified as operating…
Q: Purchased merchandise from Jones Company on credit for $4,330. Credit terms were 2/10, n/30 Paid…
A: Accounting: Accounting is a technique to recognize the company's monetary transactions in various…
Q: Carson Paint Company, which manufactures quality paint to sell at premium prices, uses a single…
A: The total cost of producing a product, including raw materials and operating costs, is detailed in a…
Q: On January 1, 20X1, Wooden Company issued 16,000 shares of $2 par value common stock for $120,000.…
A: Lets understand the basics. Treasury shares are shares which are purchased back by the company after…
Q: Predictive validation is an ideal case of criterion-related validity and it is accordingly most…
A: The utmost straightforward method/way to determine if a test can be used to make meaningful…
Q: Required information Use the following information for the Exercises below. (Algo) [The following…
A: The system where standards are prepared which are used to match the actual performances with the…
Q: In the financial year to June 30, 2021, HIFI Ltd issued options for 400,000 shares. During that…
A: Earnings per share are the amount of net income that is held in hands of each shareholder of the…
Q: 6. LABAN LANG Company adds materials at the beginning of the process in the AAA Department, which is…
A: The equivalent units are calculated on the basis of percentage of the work completed during the…
Q: Keating Co. is considering disposing of equipment that cost $50,000 and has $40,000 of accumulated…
A: Net differential profit (loss) from the sell alternative = Income from sale of equipment - Income…
Q: Prepare journal entries to record the following transactions entered into by the Marrow Company:…
A: As per the given question, we have to pass a few journal entries in the books of Marrow Company. The…
Q: Est. Percentage Uncollectible Age Interval Balance Not due $63,000 2% 1-30 days past due 7,100 31-60…
A: Formula: Estimated Uncollectible amount = Balance amount x Estimated Percentage Uncollectible.
Q: 2. Sales plan of 2022 on ABC company as follo Month Sales in unit January February 5500 5600 March…
A: Production budget means the quantity to be produce to meet the forecasted sales. Production…
Q: Journalize the following transactions (assume a 360-day year when calculating interest): Mar. 1…
A: A journal entry is used to record any business transaction in the accounting records of a…
Q: Claudia wants to perform a break-even analysis on her very busy casual-dining operation. She has…
A: 1. Average sale per guest= Sales/ No. of guest =210000/25000 = $ 8.4 per guest Contribution margin=…
Q: 8. The following data for September were taken from the cost records of the Mixing Department of a…
A:
Q: The responsible use and protection of the natural environment is known as O a) Environmental Rights…
A: Environmental protection seems to be the activity of people, organizations, and governments…
Q: EXERCISE 7-4 Second-Stage Allocation [LO4] Larner Corporation is a diversified manufacturer of…
A: Overhead cost allocated to J78 Activity cost pool amount of overhead Supporting direct Labor…
Q: The folowing information relates to the business of Top End Enterprise for the month of May 2019:…
A: “Since you have posted a question with many sub-parts, we will solve three sub-parts for you. To get…
Q: On January 1, 2010, Skyline Limousine Co. purchased a limo at an acquisition cost of $28,000. The…
A: Gain (loss) on disposal of assets = Sale value - Net book value of the assets Net book value of the…
Q: Garrett Manufacturing sold 410,000 units of its product for $68 per unit in 2021. е. Variable cost…
A: Contribution margin is calculated by subtracting all variable cost from the sales. Further…
Q: MC47 On January 1, P2,500,000 for life of 5 years. expected that s. would total P5,0
A: As per accounting statement assets shall be valued at lower of cost or realizable value ( sales…
Q: The table below contains data on Fincorp Inc. The balance sheet items correspond to values at…
A: earning per share is calculated by taking the net profit of company and then dividing it by number…
Q: Required Informatlon Problem 25-49 (LO 25-2) (Algo) [The following Information applies to the…
A: Casey made a taxable gift = of $7.4 million each to both Stephanie and Linda. Total gift value =…
Q: Jennie Company assigned on a notification basis P4,000,000 of accounts receivable to a finance…
A: The correct answer for the above mentioned question is given in the following steps for your…
Q: Ten $9,000 bonds redeemable at par bearing 7% coupons payable semi-annually are sold eight years…
A: Lets understand the basics. When bond is issued for more than the face value of bond then it is…
Q: Compal Lid. acquired the whole of the Star Ltd. Sun Ltd. Rs. Assets Star Ltd Sun Ltd. Rs.…
A: When a company acquires all the shares of another company, the latter company becomes a wholly-owned…
Q: Phillip purchased a machine for $20,000 for his company. He paid 5.00% of this amount as a down…
A:
Q: The management of Springer plc is considering next year’s production and purchase budget. One of…
A: GIVEN The management of Springer plc is considering next year’s production and purchase budget.…
Q: Perpetual Inventory Using FIFO The following units of a particular item were available for sale…
A: Lets understand the basics. In FIFO basis company assumes that, goods comes first in the inventory…
Q: Number Cost of Units per Unit Beginning inventory 130 $71 Purchased goods during the period 240 80…
A: Formula: Goods available for sale in units = Beginning inventory + Purchases
Q: Calculate the gross earnings of Mr Ahmed under Halsey and Rowan plan.
A:
Risk Identification and Plan of Action Baker Manufacturing uses EAMs in several of its financial systems to capture material transactions. During this year's annual financial audit, the external auditors noticed unusually large gaps in dates of the captured transactions being copied to the audit files. Baker Manufacturing management informed the auditors that the increased transaction processing times caused by the EAMs had forced computer operators to turn off the EAMs to allow the processing of important transactions in a timely fashion. In addition, much maintenance had been performed on key applications during the past year. Required: Outline any potential risks and determine the courses of action the external auditors should follow.
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
- Risk Identification and Plan of Action The internal auditors of Brown Electrical Company report to the controller. Due to changes made in the past year to several of the transaction processing programs, the internal auditors created a new test data set. The external auditors requested that the old data set also be run. The internal auditors embarrassingly explained that they overwrote the original test data set. Required: Outline any potential exposures and determine the courses of action the external auditor should take.The internal auditors of Tantacle Electrical Company report to the controller. Because ofchanges made in the past year to several of the transaction processing programs, the internalauditors created a new test data set. The external auditors requested that the old date set alsobe run. The internal auditors, embarrassed, explained that they overwrote the original testdata set.Required:Outline any potential risks and determine the courses of action the external auditor shouldtake.The internal auditors of Tantacle Electrical Company report to the controller. Because of changes made in the past year to several of the transaction processing programs, the internal auditors created a new test data set. The external auditors requested that the old date set also be run. The internal auditors, embarrassed, explained that they overwrote the original test data set.Outline any potential risks and determine the courses of action the external auditor should take.
- The internal auditors of Brown Electrical Company report to the controller. Because of changes made in the past year to several of the transaction processing programs, the internal auditors created a new test data set. The external auditors requested that the old data set also be run. The internal auditors, embarrassed, explained that they overwrote the original test data set. Required: Outline any potential risks, and determine the courses of action the external auditor should take.During a consulting engagement involving the development of a new accounts payable system, an internal auditor identified a control weakness. Although the weakness was reported to the manager of the systems development project, the manager decided to accept the risk because, in the manager's opinion, the risk was not significant. Six months after the implementation of the new system, the disbursements process was audited by another internal auditor who determined that the control weakness had impacted payment processing. The auditor reviewing the disbursements process should do which of the following? a. Request that the manager of the systems development project fix the system b. Report the control weakness to management and the audit committee c. Discuss the control weakness with the manager of the accounting system, but do not report the finding d. Disregard the control weakness because management previously decided to accept the risk e. None of the choicesField, CPA, is auditing the financial statements of MillerMailorder, Inc. (MMI). Field has compiled a list of possible inherentand fraud risks in the revenue cycle that may result in the misstatementof MMI’s financial statements and a corresponding list ofinternal controls, which, if properly designed and implemented,could assist MMI in preventing or detecting material misstatements.For each risk numbered 1 through 15 in column 1, select one internalcontrol from column 2 (labeled a. through t.), which, if properlydesigned and implemented, most likely could assist MMI in preventingor detecting material misstatements. Internal controls can beselected for more than one risk.
- 21. During a consulting engagement involving the development of a new accounts payable system, an internal auditor identified a control weakness. Although the weakness was reported to the manager of the systems development project, the manager decided to accept the risk because, in the manager's opinion, the risk was not significant. Six months after the implementation of the new system, the disbursements process was audited by another internal auditor who determined that the control weakness had impacted payment processing. The auditor reviewing the disbursements process should do which of the following? Group of answer choices Request that the manager of the systems development project fix the system None of the choices Disregard the control weakness because management previously decided to accept the risk Discuss the control weakness with the manager of the accounting system, but do not report the finding Report the control weakness to management and the audit committeeThe auditors for Golden Gate Company have a gut feeling that liabilities may be unrecorded. Their initial suspicions stem from a radical decline in accrued liabilities from last year. Golden Gate’s records are all computerized. Required Devise a plan to search the data files to perform a substantive test for identifying unrecorded liabilities.The internal auditors of Brown Electrical Company report to the controller. Due to changes made in the past year to several of the transaction processing programs, the internal auditors created a new test data set. The external auditors requested that the old data set also be run. The internal auditors embarrassingly explained that they overwrote the original test data set. Required: Outline any potential exposures and deter- mine the courses of action the external audi- tor should take.
- 24. During a consulting engagement involving the development of a new accounts payable system, an internal auditor identified a control weakness. Although the weakness was reported to the manager of the systems development project, the manager decided to accept the risk because, in the manager's opinion, the risk was not significant. Six months after the implementation of the new system, the disbursements process was audited by another internal auditor who determined that the control weakness had impacted payment processing. The auditor reviewing the disbursements process should do which of the following? Group of answer choices Request that the manager of the systems development project fix the system Discuss the control weakness with the manager of the accounting system, but do not report the finding Report the control weakness to management and the audit committee Disregard the control weakness because management previously decided to accept the risk None of the choicesIdentify Control Weaknesses and Recommendations. Georgia Beemster, CPA, is examining the financial statements of the Louisville Sales Corporation, which recently installed acomputerized processing system. The following comments have been extracted from Beemster’s notes on computer operations and the processing and control of shipping notices andcustomer invoices:∙ To minimize inconvenience, Louisville made the conversion to the new accounting information system without changing its existing system. The vendor supervised the conversion andtrained all computer department employees in systems design, operations, and programming.∙ Each computer run is assigned to a specific employee who is responsible for makingprogram changes, running the program, and answering questions. This procedure hasthe advantage of eliminating the need for records of computer operations because eachemployee is responsible for her or his own computer runs.∙ At least one computer department employee remains in the…Explain how risk of material misstatement should he assessed and what effect that assessment will have on detection risk for the following audit client:Kistra Corporationis one of several companies engaged in the manufacture of high- speed, high- capacity data storage devices. The industry is very competitive and subject to quick changes in technology. Kistra’s operating results would place the company in the second quartile in terms of profitability and financial position. The company has never been the leader in the industry, with its products typically slightly behind the industry leaders in terms of performance.
