Auditing - Western Trading Company

Western Trading Company is a sole proprietorship engaged in the grain brokerage business. On December 31, 2006, the entire grain inventory of the company was stored in outside bonded warehouses. The company's procedure of pricing inventories in these warehouses includes comparing the actual cost of each commodity in inventory wi ...continues

AUDITING

REQUIRED: 1.Discuss the basic sequence of activities in cash collections. 2.Explain why a list of cash remittances should be made and sent to accounting departments, rather than to the accountants directly, so they can enter the credits to customers’ accounts accurately.

Auditing/Acct

REQUIRED: 1.Discuss what lapping means. What procedures can auditors employ for its detection? 2.What is a cutoff bank statement? How are they used by auditors? 3.What is check kiting? How might auditors detect kiting?

Auditing: preparation of personal financial statements

You are a credentialed CPA just starting your own practice in Hollywood, California, after five years’ experience with a “Big 4“ firm. You have several connections in the entertainment industry and hope to develop a practice rendering income tax, auditing, and accounting services to celebrities and other wealthy clients. One ...continues

Potential misstatements/tests of controls - payroll

(Potential misstatements/tests of controls—payroll) The following questions are included in the internal control questionnaire on control procedures for payroll transactions in the Pena Company: 1. Are pay rates, payroll deductions, and terminations authorized by the personnel department? 2. Are time clocks and clock card ...continues

Auditing: inventory issues

REQUIRED: 1.Explain the complexities inherent in auditing inventory. 2.Discuss appropriate internal controls over inventory. 3.Discuss the procedures for testing the details of inventory and cost of goods sold

Identify areas where analytical procedures are most efficient in auditing payables, inventory, and expense accounts.

REQUIRED: 1.Identify areas where analytical procedures are most efficient in auditing payables, inventory, and expense accounts. 2.Discuss the role of important changes in technology and supply chain management and how these changes affect the audit of acquisitions and inventory.

You are a partner in the Denver office of a national public accounting firm.

PROBLEM: You are a partner in the Denver office of a national public accounting firm. During the audit of one of your clients, you learn that this client is negotiating to sell some of its unproved oil and gas properties to a large investment company, which is an audit client of your New York office. Your client acquired t ...continues

Potential misstatements/tests of controls - payroll

16-35 (Potential misstatements/tests of controls—payroll) The following questions are included in the internal control questionnaire on control procedures for payroll transactions in the Pena Company: 1. Are pay rates, payroll deductions, and terminations authorized by the personnel department? 2. Are time clocks and cloc ...continues

Auditing: accounts payable, inventory, subsequent events, evidence

REQUIRED: 1. Discuss the auditors’ approach to the verification of liabilities and assets. 2. Which do you consider the more significant step in establishing strong internal control over accounts payable transactions: the approval of an invoice for payment or the issuance of check in payment of an invoice? Discuss. 3. D ...continues