The company engages in complex sales agreements

Assignment Help Financial Accounting
Reference no: EM131223424

In every audit engagement, the auditors should identify fraud risks that may require an audit response. Described below is a circumstance or factor that may create an increased risk of material misstatement of financial statements due to fraud.

Part 2

The compensation of management of a telecommunications firm is significantly tied to revenue, and analytical procedures indicate that revenue may be overstated. The company engages in complex sales agreements.

a. For the circumstance, indicate the fraud risk that the auditors should consider.

b. For the circumstance, indicate a possible appropriate response by the auditors.

Reference no: EM131223424

Journalize entries required to complete closing of accounts

All revenue and expense accounts have been closed at the end of the calendar year for Patton Company. The Income Summary account has total debits of $530,000 and total credits

Unadjusted trial balance-determine net income or net loss

Wyoming Tours Co. is a travel agency. The nine transactions recorded by Wyoming Tours during June 2016, its first month of operations, are indicated in the following T account

Power screwdriver for use in the home

Consider the following products: (a) a power screwdriver for use in the home; (b) a desktop inkjet printer; (c) an electric car. Using Web based resources, make your estimate

Prepare a capital projects fund balance sheet

A bond issue of $12,000,000 was authorized for the construction of a library, and the estimated bond issue proceeds and related appropriations were recorded in the General Led

Financial accounting theory

International Financial Reporting Standards are designed as a common global language for business affairs so that company accounts are understandable and comparable across i

How each event affects the elements of financial statements

Indicate how each event affects the elements of financial statements. Use the following letters to record your answer in the box shown below each element. You do not need to e

Should the airline replace its night flight from los angeles

The fixed costs for the plane are $3,000 per day whether it flies or not. A) Should the airline replace its night flight from Los Angeles with a morning flight? b) Should

What process followed for preparing consolidated statement

The income statement and the balance sheet are produced using a worksheet, but a consolidated statement of cash flows is not. What process is followed for preparing a consol


Write a Review

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