Principles Of Auditing & Other Assurance Services
21st Edition
ISBN: 9781259916984
Author: WHITTINGTON, Ray, Pany, Kurt
Publisher: Mcgraw-hill Education,
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Chapter 9, Problem 17RQ
What would be the difference between an attributes sampling plan and a variables sampling plan in a test of inventory extensions?
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Beech Corporation is a merchandising company that is preparing a master budget for the third quarter. The company’s balance sheet as of June 30th is shown below:
Beech CorporationBalance SheetJune 30Assets Cash $ 90,000Accounts receivable 136,000Inventory 62,000Plant and equipment, net of depreciation 210,000Total assets $ 498,000Liabilities and Stockholders’ Equity Accounts payable $ 71,100Common stock 327,000Retained earnings 99,900Total liabilities and stockholders’ equity $ 498,000Beech’s managers made the following additional assumptions and estimates:
Estimated sales for July, August, September, and October will be $210,000, $230,000, $220,000, and $240,000, respectively.All sales are on credit and all credit sales are collected. Each month’s credit sales are collected 45% in the month of sale and 55% in the month following the sale. All of the accounts receivable at June 30 will be collected in July.Each month’s ending inventory must equal 20%…
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Chapter 9 Solutions
Principles Of Auditing & Other Assurance Services
Ch. 9 - Prob. 1RQCh. 9 - Prob. 2RQCh. 9 - Prob. 3RQCh. 9 - Prob. 4RQCh. 9 - Prob. 5RQCh. 9 - Prob. 6RQCh. 9 - Prob. 7RQCh. 9 - Prob. 8RQCh. 9 - Prob. 9RQCh. 9 - Prob. 10RQ
Ch. 9 - Prob. 11RQCh. 9 - Prob. 12RQCh. 9 - What is a dual-purpose test?Ch. 9 - Prob. 14RQCh. 9 - Prob. 15RQCh. 9 - Prob. 16RQCh. 9 - What would be the difference between an attributes...Ch. 9 - Prob. 18RQCh. 9 - Prob. 19RQCh. 9 - Prob. 20RQCh. 9 - Prob. 21RQCh. 9 - Prob. 22RQCh. 9 - Prob. 23RQCh. 9 - Prob. 24RQCh. 9 - Prob. 25RQCh. 9 - Prob. 26RQCh. 9 - Prob. 27RQCh. 9 - Prob. 28RQCh. 9 - Prob. 29QRACh. 9 - Prob. 30QRACh. 9 - Prob. 31QRACh. 9 - Prob. 32QRACh. 9 - Prob. 33QRACh. 9 - Prob. 34QRACh. 9 - Prob. 35QRACh. 9 - Prob. 36QRACh. 9 - Prob. 37AOQCh. 9 - Prob. 37BOQCh. 9 - Prob. 37COQCh. 9 - Prob. 37DOQCh. 9 - Prob. 37EOQCh. 9 - Prob. 37FOQCh. 9 - Prob. 37GOQCh. 9 - Prob. 37HOQCh. 9 - Prob. 37IOQCh. 9 - Prob. 37JOQCh. 9 - Prob. 37KOQCh. 9 - Prob. 37LOQCh. 9 - Prob. 38OQCh. 9 - Prob. 39OQCh. 9 - For each term in the first column below, identify...Ch. 9 - Prob. 41OQCh. 9 - Smith, Inc. Rachel Robertson wishes to use...Ch. 9 - Prob. 43OQCh. 9 - Prob. 44PCh. 9 - Prob. 45PCh. 9 - Prob. 46PCh. 9 - Prob. 47PCh. 9 - In the audit of Potomac Mills, the auditors wish...Ch. 9 - Prob. 49PCh. 9 - Prob. 50PCh. 9 - Prob. 51PCh. 9 - Prob. 52ITC
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- Problem Set 1 You are the audit manager in charge of the audit of Carico Ltd. The company's year-end is 31 December, and Carico has been a client for six years. The company purchases and resells products for the energy industry including valves, fittings, pumps etc. Clients vary in size from small operators to large companies. No manufacturing takes place in Carico. Information on the company's financial performance is available as follows: 2024 Forecast $'000 Revenue 10,088 Cost of sales (8,184) 2023 Actual $'000 8,965 (6,575) Gross profit 1904 2390 Administration costs (1039) (990) Distribution costs (500) (500) Net profit 365 900 Non-current assets (at net book value) 840 980arrow_forwardProblem Set 1 You are the audit manager in charge of the audit of Carico Ltd. The company's year-end is 31 December, and Carico has been a client for six years. The company purchases and resells products for the energy industry including valves, fittings, pumps etc. Clients vary in size from small operators to large companies. No manufacturing takes place in Carico. Information on the company's financial performance is available as follows: 2024 Forecast 2023 Actual $'000 $'000 Revenue 10,088 8,965 Cost of sales (8,184) (6,575) Gross profit 1904 2390 Administration costs (1039) (990) Distribution costs (500) (500) Net profit 365 900 Non-current assets (at net book value)…arrow_forwardDecember, and Carico has been a client for six years. The company purchases and resells products for the energy industry including valves, fittings, pumps etc. Clients vary in size from small operators to large companies. No manufacturing takes place in Carico.Information on the company's financial performance is available as follows:2024 Forecast 2023 Actual$'000 $'000Revenue 10,088 8,965Cost of sales (8,184) (6,575)Gross profit 1904 2390Administration costs (1039) (990)Distribution costs (500) (500)Net profit 365 900Non-current assets (at net book value) 840 980Current assetsInventory 50 296Receivables 1300 910Cash and bank 110 358Total assets 2300 2544Capital and reservesShare capital 200 200Accumulated profits 1100 1315Total shareholders' funds 1300 1515Non-current liabilities 300 452Current liabilities 700 5772300 2544Other information The industry that Carico trades in has seen moderate growth of 6% over the last year. Non-current assets mainly relate to company premises for…arrow_forward
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