The CPA firm auditing Mason Street Recording Studiosfound that total stockholders’ equity was understated andliabilities were overstated. Which of the following errorscould have been the cause?a. Making the adjustment entry for depreciation expensetwice.b. Failure to record interest accrued on a note payable.c. Failure to make the adjusting entry to record revenuethat had been earned but not yet billed to clients.d. Failure to record the earned portion of fees received inadvance.

Q: After a while, Brekdak as head of the Accounting Department, realized that the system of record that…

A: The answer for the above practical question on consistency in applying policies and procedures for…

Q: The auditor was unable tO confirm from the Bills receivable amounted OMR 250,000 by communicating…

A: Auditing means the independent checking of company operation by outsider. Auditor is  qualified and…

Q: A company Hira Ltd. has been mis-reporting its financial statements since more than 10 years which…

A: Auditors are those person who perform the audit of the financial statements of the company in order…

Q: he auditors of Final Victory Ltd (FVL) have conducted an annual audit of the company after 31…

A: Inventories of $9750 have been sold in 2019 but included in closing inventories that means closing…

Q: Accountants very often are required to make estimates, and very often those estimates prove…

A: Generally Accepted Accounting Principles (GAAP): Generally Accepted Accounting Principles are the…

Q: Do you consider that the change of accounting policies that have been used for a long time is an…

A: The answer for the practical question on consistency in applying policies and procedures for…

Q: For each situation, identify the appropriate audit report and briefly explain the rationale for…

A: Audit Reports are the files created by the auditors after reviewing of the financial statements of…

Q: Which of the following substantive procedures would auditors most likely perform to obtain evidence…

A: Answer:   Option b

Q: urance services senior at Bailey & Associates and have noted the followi independent issues in…

A: Audit risk is described as the risk which the auditor expresses an opinion of inappropriate audit…

Q: Below

A:

Q: Audit independence in fact is most clearly lost whena. A public accounting firm audits competitor…

A: Audit independence means while doing audit of various firms, auditor should be independent.

Q: As a result of analytical procedures, the auditor determines that the gross profitpercentage has…

A: Option 4 is correct.

Q: 2. What is the revenue-recognition abuse identified in the article related to the…

A: In the article related to the percentage of completion method, the revenue recognition abuse that is…

Q: Reports on Internal Control over Financial Reporting (Report Modifications). Foreach of the…

A: Definition: Internal Control: Internal control refers to the plan of a company. Implementation of an…

Q: hich of the following is correct regarding the result of a cash disbursement cut-off rendered by an…

A: Cut-off arrangements are the precautions taken by the business entity to keep the business…

Q: The auditor has determined that there is a material going concern uncertainty at the company due to…

A: The answer is option (b) Adverse opinion  refer step 2 for explanation

Q: least likely to be your starting point in computing materiality

A: First option is wrong because normalized net income is one of the three benchmarks for computing…

Q: Reimbursement of operating expenses analysis is the example of choice.   Construction audit…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Which of the following are audit evidences? a) Inspecting non-current/fixed assets b) An item of…

A: Audit Evidence: It refers to the information that the auditor uses in arriving at a conclusion on…

Q: Consider each situation independently and describe the audit opinion that should be given and…

A: a. Qualified Report Reason: The method of estimating bad debts is not as per the accounting policies…

Q: gement. Requirement: 1.Discuss the differences between the modified and unmodified audit…

A: 1. DIFFERENCE BETWEEN MODIFIED & UNMODIFIED AUDIT REPORTS DEFINITION:- An auditor gives an…

Q: Statement 1: If management fails to list an unasserted claim in the letter of inquiry to a lawyer,…

A: Auditing is a process in which auditor in which an auditor checks the financial statements of the…

Q: Statement 1: The date of the issuance of the financial statements shall be before the date of the…

A: Answer: Given statements as: Statement 1: The date of the issuance of the financial statements shall…

Q: During a review of a nonissuer’s financial statements, accountants are required to make…

A:

Q: Consider the following independent and material situations: (i) The client, with reasonable…

A: Audit Opinion Auditors are issue four types Audit opinion.  The details are given below Unmodified…

Q: 1. B) During the audit of LDF Co’s bad debt provision, the auditor discovered that £500,000 of costs…

A: Part 1: Modified audit reports: It applies to a report in which the financial records are accurate…

Q: Which statement is incorrect concerning accounting estimate a.As a result of uncertainties inherent…

A: A change in the accounting estimate can be defined as the change in the carrying value of the…

Q: An auditor is required to confirm accounts receivable if the accounts receivable balances area.…

A:

Q: Which of the following circumstances would most likely cause an auditor to suspectthat material…

A: Audit Planning: For efficient performance of auditing, the auditor must plan the work with gaining…

Q: The errors below were noted after the books of CalMart Corporation were audited at the close of 2021…

A: We will analyse each transaction's effect on income, assets, liabilities, retained…

Q: Jones, CPA, is planning the audit of Rhonda’s Company. Rhonda verbally asserts to Jones that all…

A:

Q: Kim Company, a CPA firm, conducted an audit for the 2020 financial statements of Erin Corporation.…

A: Management fraud can be defined as the act or omission by management leading to intentional fraud…

Q: Lana Company, a CPA firm, conducted an audit for the 2020 financial statements of Yara Corporation.…

A: Audit risk include inherent risks.  This risk is caused by an error or omission arising from factors…

Q: Financial accounting reports refer to the basic financial statements. They are prepared per period…

A: The financial statements provide detailed financial information about the assets, obligations,…

Q: a. Identify and describe

A: Management can easily override controls and conceal the fraud. It is difficult for employees to…

Q: An auditor issued an unqualified opinion on financial statements that failed to disclose that a…

A: Auditing refers to evaluating the books of accounts to determine the misstatement if any or to check…

Q: You are reviewing the results of the Firestone audit. These are the details of the summay of…

A: Performance Materiality describes the level of materiality set by the auditor to reduce to an…

Q: The financial records of the Movitz Company show that R. Dennis owes $4,100 on an account…

A:

Q: In the preparation of the final accounts of Ringway Chemists Ltd, the Audit Manager realized from a…

A: All types of expenses which have been incurred already and not paid are treated as “Outstanding…

Q: bad debt expense is relevant into the followings cycles: a. capital acquisition and payments  b.…

A: Note: Since you have asked multiple question, we will solve the first question for you. If you want…

Q: In considering overáll believes that misstatements aggregating $50,000 would have a material effect…

A: To establish a level of materiality, auditors rely on rules of thumb and professional judgment. They…

Q: B. During the audit of LDF Co's bad debt provision, the auditor discovered that £500,000 of costs…

A: SOLUTION- 1-DIFFERENCE BETWEEN UNMODIFIED AND MODIFIED AUDIT REPORT-   UNMODIFIED REPORT MEANS THAT…

Q: As a result of analytical procedures an auditor determines that gross profit has declined from 30%…

A: The auditor's duty is to identify the fraud and errors in the financial statement of the company. If…

Q: 4) Consider each situation independently and describe the audit opinion that should be given and…

A:

Q: After a while, Brekdak as head of the Accounting Department, realized that the system of record that…

A: Accounting standards are the rules or policies, required to be followed by public companies in…

Q: Below are ten independent risk factors:1. The client lacks sufficient working capital to continue…

A: 1. The first risk factor of client lack of working capital is related to Acceptable audit risk. 2.…

Q: Which of the following are audit procedures? a) Inspecting non-current/fixed assets b) An item of…

A: The following are the audit procedures Inspecting non-current/fixed assets An item of…