Preparing financial statements based on data

Assignment Help Accounting Basics
Reference no: EM13700975

After reading and discussing how important it is for auditors to gather evidence to back up client claims, you are now introduced to accounting services where it is unnecessary to verify management's information.

In providing these compilations, how comfortable would you be in preparing financial statements based on data that you are not going to verify?
What concerns would you have signing off on these compilations as a CPA?
Because you are not performing audit services on the compilations, how do you know if information you are given is true?
What types of questions could you ask your client that would fall within the realm of compilations without crossing the line into auditing?

Reference no: EM13700975

Questions Cloud

Automated process of accounting information systems : Similar to any business, Kudler Fine Foods uses payroll, accounts payable, accounts receivable, and inventory processes. All four of these processes might be improved by the use of accounting information systems. Your accounting firm has assign..
Prepare a production budget for the first quarter : Company XYZ produces three products; p1, p2, and p3. The sales department has projected that we can sell 15,000 of p1 and p2 and 22,500 of p3. The company wants an ending inventory of each equal to 10% of sales. Current inventories are at 1300..
Assess the organization financialhealth : Accounting-basedperformance evaluation is used regularly to assess the organization's financialhealth and to inform both internal and external stakeholders. Examining costcenters, profit centers, and investment centers is often part of this kin..
What is the annual net cash cost : If a corporation issued $3,000,000 in bonds which pay 5% annual interest, what is the annual net cash cost of this borrowing if the income tax rate is 30%?
Preparing financial statements based on data : After reading and discussing how important it is for auditors to gather evidence to back up client claims, you are now introduced to accounting services where it is unnecessary to verify management's information.
One day the new ceo of the food service division : One day the new CEO of the Food Service Division (who happened to have a Marketing background) stopped by your office with a sheet of paper, handed it to you and said, "I just got back from this financial symposium and I heard a lot of terms an..
Offset the year-end inventory balance with a fund balance : Why do some accountants believe that it should offset the year-end inventory balance with a fund balance-non-spendable when no comparable fund balance is required for cash, taxes receivable, or most other assets?
How do you know that the information is secure from phishing : Computer system provides protection using the Bell-La Padula policy. How would a virus spread and how do you know that the information you type in is secure from phishing?
Capital investment decisions and the time value of money : Dominic Hunter, a second- year business student at University of Utah, wll graduate in two years with an acoounting major and a Spanish minor. Hunter is trying to decide where to work this summer. He has two choices: work full time for a bottl..

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  The following income statement items appeared on the

the following income statement items appeared on the adjusted trial balance of schembri manufacturing corporation for

  One of the traditional methods for allocating costs was to

one of the traditional methods for allocating costs was to put all indirect costs in one pool and allocate by the

  Prepare all necessary journal entries in 2010

Holmes, Inc. obtained significant influence over Nadal Corporation by buying 25% of Nadal's 30,000 outstanding shares of common stock at a total cost of $9 per share on January 1, 2010. On June 15, Nadal declared and paid a cash dividend of $36,00..

  Why is it important to distinguish debt cancellation

Why is it important to distinguish debt cancellation from a gift, bequest, or renegotiation of a purchase price?

  What governing bodies set accounting standards

Financial statements are prepared in accordance with what? What governing bodies set accounting standards? Why do you think financial statements are required to be prepared using the same standards?

  Fairfax company uses weighted -average process costing to

fairfax company uses weighted -average process costing to account for it productio cost. direct labor is added evenly

  During the current year irene a married individual who

during the current year irene a married individual who files a joint return reports the following items of income and

  During october shandra company had 97500 of cash receipts

a.during october shandra company had 97500 of cash receipts and 101250 of cash disbursements. the october 31 cash

  Deduct home equity interest

In August of this year, when the home had a fair market value of $550,000 and he owed $225,000 on the mortgage, he took out a home equity loan for $350,000. David used the funds to purchase a yacht to be used for recreational purposes. What is the..

  Compute the estimated warranty expense payable amount

Analysis shows that around 2 percent of A-line sales require after-sale repairs. Beginning July 1, 20x1, Jake's Computer Sales and Repair provides customers with a limited product warranty on each A-line computer sold. Sales of A-line computers to..

  Compute the partnerships ordinary income

Compute Mark's and Pamela's ending basis in their partnership interests assuming their beginning balances are $150,000 each.

  For 2010 fielder corporation reported net income of 30000

for 2010 fielder corporation reported net income of 30000 net sales 400000 and average shares outstanding of 6000.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd