Data Analytics For Accounting
19th Edition
ISBN: 9781260375190
Author: RICHARDSON, Vernon J., Teeter, Ryan, Terrell, Katie
Publisher: Mcgraw-hill Education,
expand_more
expand_more
format_list_bulleted
Textbook Question
Chapter 3, Problem 3P
An auditor is trying to figure out if the
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
According to Professional Judgment, one of the environmental factors affecting judgment is the "rush to solve" judgement trap. Briefly describe the trap and how it applies to the situation affecting the recording of the sales transaction.
Which of the following management assertion is the most suitable assertion for “inspecting invoices to determine if the services provided by an electrical contractor are repairs or improvements to the client’s offices” evidence: Select one: a. Accuracy or valuation and allocation b. Occurrence or existence c. Cut-off d. Completeness
The purpose of an audit trail is to be able to trace a transaction from its original through source documents to the final output or backwards from the final output to the original source documents to prove the accuracy and validity of Ledger postings. Describe in detail the audit trail for the following manufacturing business: b) Customer returns defective goods
Chapter 3 Solutions
Data Analytics For Accounting
Ch. 3 - Prob. 1MCQCh. 3 - Prob. 2MCQCh. 3 - Prob. 3MCQCh. 3 - Prob. 4MCQCh. 3 - In general, the more complex the model, the...Ch. 3 - In general, the simpler the model, the greater the...Ch. 3 - _____ is a discriminating classifier that is...Ch. 3 - Prob. 8MCQCh. 3 - Models associated with regression and...Ch. 3 - Prob. 10MCQ
Ch. 3 - What is the difference between a target and a...Ch. 3 - What is the difference between a supervised and an...Ch. 3 - Prob. 3DQCh. 3 - Prob. 4DQCh. 3 - Prob. 5DQCh. 3 - Prob. 6DQCh. 3 - How might classification be used in approving or...Ch. 3 - Prob. 8DQCh. 3 - How does fuzzy match work? Give an accounting...Ch. 3 - Compare and contrast the profiling data approach...Ch. 3 - Exhibits 3-1, 3-2, 3-3, and 3-4 suggest that...Ch. 3 - Prob. 1PCh. 3 - Prob. 2PCh. 3 - An auditor is trying to figure out if the goodwill...Ch. 3 - How might clustering be used to explain customers...Ch. 3 - Why would the use of data reduction be useful to...Ch. 3 - How could an investor use XBRL to do an analysis...Ch. 3 - Prob. 7P
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Which of the following procedures is usually performed by the auditor to determine if obsolete inventory exists? a. Footing the inventory subsidiary ledger b. Analysis of inventory turnover and sales reports c. Sample the inventory reported by the client, examine the purchase date and receiving reports d. Confirmation of inventory with client’s customers Which statement is true? a. The incomplete recording of asset disposals understates the asset balance b. Management may be incentivized to over-recognize impairments on machinery when the company is doing really well to lower the subsequent depreciation expenses c. Management never over-accrue impairments on machinery because it reduces the balance of assets d. Management may be incentivized to over-recognize impairments on machinery when the company is doing really well because auditors will be more skeptic over the performance that is “too good to be true”arrow_forwardFor each of the following misstatements in property, plant, andequipment accounts, state an internal control that the client can implement to preventthe misstatement from occurring and a substantive audit procedure that the auditor canuse to discover the misstatement:1. Computer equipment that is abandoned or traded for replacement equipment isnot removed from the accounting records.2. Depreciation expense for manufacturing operations is charged to administrativeexpenses.3. The asset lives used to depreciate equipment are less than reasonable, expected useful lives.4. Capitalizable assets are routinely expensed as repairs and maintenance, perishabletools, or supplies expense.5. Acquisitions of property are recorded at incorrect amounts.6. A loan against existing equipment is not recorded in the accounting records. Thecash receipts from the loan never reached the company because they were used forthe down payment on a piece of equipment now being used as an operating asset. Theequipment…arrow_forwardAn auditor performs observational activities to assess the impression of an assessment of the activities performed by the client. Examples of common audit activities for the auditor are as follows, except:a. walk around the factory to get a general impression of the facilities the client hasb. observe if any equipment is damaged or corroded to assess whether the equipment is obsoletec. pay attention to the turnover of factory employees to assess whether there are those who do not work because they are lazy or sickd. regard to individuals who perform accounting tasks to determine whether the person who was given the task of doing the task correctly.arrow_forward
- What information may auditors use to make a decision on whether or not to accept a new customer?arrow_forwardHow to perform impairment testing for goodwill?arrow_forwardWhich of the following would be a hidden quality cost? a. Inspecting and testing prototypes b. Repairing a computer still under warranty c. Stopping work to correct process malfunction (discovered using statistical process control procedures) d. Lost market share due to poor product performancearrow_forward
- Which of the following quality costs is an internal failure cost? a. Inspection of reworked units b. Lost sales because of products failing to meet specifications c. Replacing a defective product d. Training production line workers in new quality proceduresarrow_forwardIn which of the following situations would observation not provide the most compelling audit evidence? a. Documentation of a production or accounting process. b. Analysis of the security of a storeroom or facility. c. Verification of the existence of production equipment. d. Identification of excess inventory.arrow_forwardWhen auditing inventories, an auditor would least likely verify thata. All inventory owned by the client is on hand at the time of the count.b. The client has used proper inventory pricing.c. The financial statement presentation of inventories is appropriate.d. Damaged goods and obsolete items have been properly accounted for.arrow_forward
- What is a post-audit, why do firms use them, and what problems can arise when they are used?arrow_forwardWhen an auditor reviews additions to the equipment (fixed asset) account to make sure that fixed assets are not overstated, she wants to obtain evidence as to management’s assertion regardinga. Completeness.b. Existence.c. Valuation and allocation.d. Rights and obligations.e. Occurrencearrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
- Auditing: A Risk Based-Approach to Conducting a Q...AccountingISBN:9781305080577Author:Karla M Johnstone, Audrey A. Gramling, Larry E. RittenbergPublisher:South-Western College PubAuditing: A Risk Based-Approach (MindTap Course L...AccountingISBN:9781337619455Author:Karla M Johnstone, Audrey A. Gramling, Larry E. RittenbergPublisher:Cengage LearningCornerstones of Cost Management (Cornerstones Ser...AccountingISBN:9781305970663Author:Don R. Hansen, Maryanne M. MowenPublisher:Cengage Learning
Auditing: A Risk Based-Approach to Conducting a Q...
Accounting
ISBN:9781305080577
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:South-Western College Pub
Auditing: A Risk Based-Approach (MindTap Course L...
Accounting
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser...
Accounting
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Cengage Learning
Relevant Costing Explained; Author: Kaplan UK;https://www.youtube.com/watch?v=hnsh3hlJAkI;License: Standard Youtube License