Auditing and Assurance Services, Student Value Edition (16th Edition)
16th Edition
ISBN: 9780134075754
Author: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Chris E. Hogan
Publisher: PEARSON
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Question
Chapter 24, Problem 29DQP
a)
To determine
Prepare an unadjusted misstatement audit schedule in the given situation.
b)
To determine
Provide the conclusion regarding the financial statements in case, the audit findings are not corrected by the Management of W prior to issue of the audit report.
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Students have asked these similar questions
Due to rapid employee turnover in the accounting department, the following transactions involving intangible assets were improperly
recorded by Metlock Corporation.
1.
2.
Metlock developed a new manufacturing process, incurring research and development costs of $129,000. The company also
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year's amortization in 2022, based on a 20-year life ($2,025 amortization). The goodwill has an indefinite life.
Prepare all journal entries necessary to correct any errors made during 2022. Assume the books have not yet been closed for 2022.
(Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for
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3) b) During the audit, the team has identified the following errors: profit before tax for PSG is estimated at
$3,000,000 for the year ended June 30, 2020,
An error of $3,000 was found in the audit of depreciation expense of the warehouse purchased in January
2020. The management of PSG have indicated that they do not wish to amend the financial statements.
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An error of $350,000 in the valuation of work in progress was found as a number of the assumptions
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ii.
financial statements.
Calculate Performance Materiality and utilize this to discuss the appropriate treatment of the above two
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During the year-end audit of Cressman Corporation's financial statements for 2016, you discover the following items: 1. Cressman capitalized $57,000 to the Patent account at the beginning of 2015
for the cost of a patent. This amount included $50,000 of R&D costs. The patent was amortized over a 20-year life in 2015 and 2016. 2. At the beginning of 2015, Cressman paid its lawyers $8,000 to
successfully defend a patent infringement suit regarding the patent in Item 1. Cressman debited this cost to Legal Fees Expense. 3. At the beginning of 2016, Cressman purchased a patent for
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years). However, Cressman agreed to a suggestion by the auditors that the life of the original patent obtained in Item 1 was protected for only 7 more years as of the beginning of 2016. Required:
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Chapter 24 Solutions
Auditing and Assurance Services, Student Value Edition (16th Edition)
Ch. 24 - Prob. 1RQCh. 24 - Explain why an auditor is interested in a clients...Ch. 24 - Prob. 3RQCh. 24 - Prob. 4RQCh. 24 - Prob. 5RQCh. 24 - Prob. 6RQCh. 24 - Prob. 7RQCh. 24 - Prob. 8RQCh. 24 - What major considerations should the auditor take...Ch. 24 - Identify five audit procedures normally done as a...
Ch. 24 - Prob. 11RQCh. 24 - Prob. 12RQCh. 24 - Prob. 13RQCh. 24 - Prob. 14RQCh. 24 - Prob. 15RQCh. 24 - Prob. 16RQCh. 24 - Prob. 17RQCh. 24 - Prob. 18.1MCQCh. 24 - Prob. 18.2MCQCh. 24 - Prob. 18.3MCQCh. 24 - Prob. 18.4MCQCh. 24 - Prob. 19.1MCQCh. 24 - Prob. 19.2MCQCh. 24 - Prob. 19.3MCQCh. 24 - Prob. 20.1MCQCh. 24 - Prob. 20.2MCQCh. 24 - Prob. 20.3MCQCh. 24 - Prob. 21.1MCQCh. 24 - Prob. 21.2MCQCh. 24 - Prob. 21.3MCQCh. 24 - Prob. 22DQPCh. 24 - In an audit of the Marco Corporation as of...Ch. 24 - Prob. 24DQPCh. 24 - The field work for the June 30, 2016, audit of...Ch. 24 - Prob. 26DQPCh. 24 - Prob. 27DQPCh. 24 - Prob. 28DQPCh. 24 - Prob. 29DQPCh. 24 - Prob. 30DQP
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