UNDERSTANDING BUSINESS (LL/ACCESS)
13th Edition
ISBN: 9781264671656
Author: Nickels
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Question
Chapter 17, Problem 4DCS
Summary Introduction
To discuss: The important conclusion of the auditor’s report and the comparability of actual financial statements with the information provided in the text.
Introduction: Financial statements refer to statements that describe the status of the entity’s assets, liabilities, capital, receipts, expenses and earnings.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
How does an auditor evaluate the unadjusted misstatementschedule (also called summary of possible misstatements) at the end of the audit engagement to assess whether the financial statements are fairly presented? Is the auditorrequired to discuss the schedule with anyone else?
List the factors that should affect the auditor’s decision whetherto analyze an account balance. Considering these factors, list four expense accounts thatare commonly analyzed in audits.
Assume Mercy Hospital uses accrual accounting. Which of the following statements is(are) most correct?
A. Supplies expense is recognized when medical supplies are delivered to the hospital by the vendor.
B. Patient service revenue is recognized when payment is received by the hospital from a patient’s third-party payer.
C. Salaries expense is recognized when payroll checks are written.
D. Patient service revenue is recognized when healthcare services are provided.
Chapter 17 Solutions
UNDERSTANDING BUSINESS (LL/ACCESS)
Ch. 17.2 - Prob. 1TPCh. 17.2 - Prob. 2TPCh. 17.2 - Prob. 3TPCh. 17.2 - Prob. 4TPCh. 17.3 - Prob. 17.3AQCh. 17.3 - Prob. 17.3BQCh. 17.3 - Prob. 17.3CQCh. 17.3 - Prob. 17.3DQCh. 17.3 - Prob. 1MEDCh. 17.3 - Prob. 5TP
Ch. 17.3 - Prob. 6TPCh. 17.3 - Prob. 7TPCh. 17.3 - Prob. 8TPCh. 17.3 - Prob. 9TPCh. 17.3 - Prob. 10TPCh. 17.3 - Prob. 11TPCh. 17.4 - Prob. 17.4AQCh. 17.4 - Prob. 12TPCh. 17.4 - Prob. 13TPCh. 17.5 - Prob. 14TPCh. 17.5 - Prob. 15TPCh. 17.5 - Prob. 16TPCh. 17 - Prob. 1CECh. 17 - Prob. 2CECh. 17 - Prob. 3CECh. 17 - Prob. 1CTCh. 17 - Prob. 2CTCh. 17 - Prob. 3CTCh. 17 - Prob. 4CTCh. 17 - Prob. 1DCSCh. 17 - Prob. 2DCSCh. 17 - Prob. 3DCSCh. 17 - Prob. 4DCSCh. 17 - Prob. 5DCSCh. 17 - Prob. 1PPTCh. 17 - Prob. 2PPTCh. 17 - Prob. 1VCCh. 17 - Prob. 2VCCh. 17 - Prob. 3VC
Knowledge Booster
Similar questions
- Management in today’s corporate world has developed a habit of acting on their own interest rather than maximizing the interest or wealth of the shareholders. This has made the need for Independent Audit greater in Today’s Society than it was in 50 years ago. Mr. Ama Yaw, an investor, in his opinion sees “Auditor as an Insurer or a Guarantor of the correctness of the financial statements” because they rely only on audited Financial Statements in making investment decisions. Required: Comment on the Opinion of Mr. Ama Yawarrow_forwardWhich of the following best describes the difference between financial accounting and tax accounting? Financial accounting is what managers use for internal, decision making purposes while tax accounting is used for creditors, investors, and the general public. They are both used for income tax reporting purposes, and they are both required by the SEC to be issued and made public so that they can be used by creditors, investors, and the general public Financial accounting is used for income tax reporting purposes and tax accounting is used by managers for internal, decision making purposes. Financial accounting is used by creditors, investors, and the general public, while tax accounting is used for income tax reporting purposes None of these answers is correctarrow_forwardSelect two CAATs and explain how they are useful in auditing. Suggest a method that someone with fraudulent intentions could use to work around the CAAT for personal gains.arrow_forward
- 25. The primary focus of the Statement of Activities of a not-for-profit organization is on determining the net increase/decrease in which of the following? a) Unrestricted Net Assets. b) Temporarily Restricted Net Assets. c) Permanent Net Assets. d) Net Assets of the entity taken as a whole. 26. Under the GASB Statement No. 34 reporting model for governmental entities, which of the following is required? a) Only one set of financial statements, prepared on the full accrual basis of accounting. b) Only one set of financial statements, prepared on the modified accrual basis of accounting. c) Two sets of financial statements, one that views the government as a collection of separate funds and reports using the current financial resources measurement focus and modified accrual basis of accounting for governmental funds and one that views the government as a whole by combining all governmental activities in one column and all business-type activities in another column using the full…arrow_forwardWhat are the advantages and limitations of financial statement analysis? Cite some factors to consider in analyzing the financial statements.arrow_forwardSarah O’Hann enjoyed taking her first auditing course as part of herundergraduate accounting program. While at home during her semester break, she andher father discussed the class and it was clear that he didn’t really understand the natureof the audit process as he asked the following questions:a. What is the main objective of the audit of an entity’s financial statements?b. The audit represents the CPA firm’s guarantee about the accuracy of the financialstatements, right?arrow_forward
- Mr. Q was considered as one of the best external auditors in your area. Upon joining the company as an employee, he was appointed as the company’s Compliance Officer. Upon impressing most of the directors about his risk analysis of the company, he was later given another appointment. When the board knew later that he was a registered Certified Internal Auditor, he was later handed his third appointment as Chief Internal Auditor. Finally, he was appointed as VP for Finance. Question: Is there something wrong with these appointments?arrow_forwardWhy do auditors often consider it desirable to perform audit teststhroughout the year rather than wait until year-end? List several examples of evidencethat can be accumulated before year-end.arrow_forwardBig data and data analytics are becoming an important part of an accountant's methods for analyzing the different companies and their performances. The use of these elements enhances organizational performance, improves fraud detection, and increases audit performance and scope. Use the Internet to review at least two news articles or publications about current and future trends in the use of big data. Choose a company that is not publicly traded (a small or medium-sized company). Review the company, and suggest some of the ways in which big data would benefit this company.arrow_forward
- Evaluate the following comment by an auditor: “My job isto determine whether the payroll records are fairly stated in accordance with accountingstandards, not to find out whether they are following proper hiring and terminationprocedures. When I conduct an audit of payroll, I keep out of the human resourcesdepartment and stick to the time cards, journals, and payroll checks. I don’t care whomthey hire and whom they fire, as long as they properly pay the ones they have.arrow_forward. In comparison to the external auditor, an internal auditor is more likely to be concerned with(1) internal administrative control.(2) cost accounting procedures.(3) operational auditing.(4) internal control.arrow_forward1. Which of the following best describes Financial Management? A) It is the specialty area of finance concerned with financial decision-making within a business entity. B) It is concerned with the use of funds - the buying, holding, or selling of all types of assets. C) It is concerned with the procuring of funds that can be used for long-term investing and financing day-to-day operations. D) All of the other choices best describe Financial Management. 2. Which of the following least describes Financing Decisions? A) Financing decisions are concerned with the procuring of funds that can be used for long-term investing and financing day-to-day operations. B) It is focused on the proper acquisition of cash, cash equivalents, and trading securities for use in a company's operations and investments. C) It involves incurring of debt, through bank loans or sale of bonds, to finance a company's operation and investments. D) It also deals with dividend decision, which involves how much of a…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Understanding BusinessManagementISBN:9781259929434Author:William NickelsPublisher:McGraw-Hill Education
Management (14th Edition)ManagementISBN:9780134527604Author:Stephen P. Robbins, Mary A. CoulterPublisher:PEARSON
Spreadsheet Modeling & Decision Analysis: A Pract...ManagementISBN:9781305947412Author:Cliff RagsdalePublisher:Cengage Learning
Management Information Systems: Managing The Digi...ManagementISBN:9780135191798Author:Kenneth C. Laudon, Jane P. LaudonPublisher:PEARSON
Business Essentials (12th Edition) (What's New in...ManagementISBN:9780134728391Author:Ronald J. Ebert, Ricky W. GriffinPublisher:PEARSON
Fundamentals of Management (10th Edition)ManagementISBN:9780134237473Author:Stephen P. Robbins, Mary A. Coulter, David A. De CenzoPublisher:PEARSON
Understanding Business
Management
ISBN:9781259929434
Author:William Nickels
Publisher:McGraw-Hill Education
Management (14th Edition)
Management
ISBN:9780134527604
Author:Stephen P. Robbins, Mary A. Coulter
Publisher:PEARSON
Spreadsheet Modeling & Decision Analysis: A Pract...
Management
ISBN:9781305947412
Author:Cliff Ragsdale
Publisher:Cengage Learning
Management Information Systems: Managing The Digi...
Management
ISBN:9780135191798
Author:Kenneth C. Laudon, Jane P. Laudon
Publisher:PEARSON
Business Essentials (12th Edition) (What's New in...
Management
ISBN:9780134728391
Author:Ronald J. Ebert, Ricky W. Griffin
Publisher:PEARSON
Fundamentals of Management (10th Edition)
Management
ISBN:9780134237473
Author:Stephen P. Robbins, Mary A. Coulter, David A. De Cenzo
Publisher:PEARSON