Control activities in payroll processing

As part of the audit of Manor Company, you are assigned to review and test the payroll transactions of the Galena plant. Your tests show that all numerical items were accurate. The proper hourly rates were used, and the wages and deductions were calculated correctly. The payroll register was properly footed, totaled, and post ...continues

Evaluation of Jameson Company's internal controls - raw materials and supplies inventory.

The Jameson Company produces a variety of chemical products for use by plastics manufactures. The plant operates on two shifts, five days per week, with maintenance work performed on the third shift and on Saturday as required. An audit conducted by the staff of the new corporate internal audit department has recently been com ...continues

Can you think of any populations that an auditor might want to examine without sampling?

Can you think of any populations that an auditor might want to examine without sampling?

The Jones Company, located in Chicago, has been your client for many years.

I really need someone to explain this assignment to me. See attached. 18-1 (Substantive test of investment balances) The Jones Company, located in Chicago, has been your client for many years. The company manufactures light machinery and has a calendar year closing. At December 31, 20x1, and 20x2, the following items appea ...continues

Substantive test for cash balances

You are the in-charge accountant examining the financial statements of the Gutzler Company for the year ended December 31, 20X0. During late October 20X0, you with the help of Gutzler's controller, completed an internal control questionnaire and prepared the appropriate memoranda describing Gutzler's accounting procedures. You ...continues

Auditing Questions - Rules-Based Standards and Question on Enron/Anderson

1. Explain how “rules-based” accounting standards differ from “principles-based” standards. How might fundamentally changing accounting standards from “bright-line” rules to principle-based standards help prevent another Enron-like fiasco in the future? Are there dangers in removing “bright-line” rules? What difficulties might b ...continues

In planning the audit of a client’s financial statements, an auditor identified the following issues that need audit attention.

5-30 (Assertions) In planning the audit of a client’s financial statements, an auditor identified the following issues that need audit attention. 1. The allowance for doubtful accounts is fairly presented in amount. 2. All accounts payable owed as of the balance sheet date are included in the financial Statements. 3. Al ...continues

Audit Evidence

6-22 (Audit evidence) during the course of an audit, the auditor examines a wide variety of documentation. Listed below are some forms of documentary evidence and the sources from which they are obtained. 1. Bank statement sent directly to the auditor by the bank. 2. Creditor monthly statement obtained from client’s files. ...continues

Which of the following combinations of procedures would an auditor be most likely to perform to obtain evidence about fixed-asset additions?

6. Which of the following combinations of procedures would an auditor be most likely to perform to obtain evidence about fixed-asset additions? a.Inspecting documents and physically examining assets. b. Recomputing calculations and obtaining written management representations. c. Observing operating activities and comparing b ...continues

How do you define scienter within the context of accountant’s legal liability?

How do you define scienter within the context of accountant’s legal liability?