Evidence comes in various types and has different degrees

Assignment Help Accounting Basics
Reference no: EM13584620

Evidence comes in various types and has different degrees of reliability. Following are some statements that compare various types of evidence.

a.

A bank confirmation versus observation of the segregation of duties between cash receipts and recording payment in the accounts receivable subsidiary ledger.

b. An auditor%u2019s recalculation of depreciation versus examination of raw material requisitions.
c.

A bank statement included in the client%u2019s records versus shipping documents.

d.

Physical inspection of common stock certificates held for investment versus physical examination of inventory components for a personal computer.

Required:

For each situation, indicate whether the first or second type of evidence is more reliable. Provide a rationale for your choice.

Reference no: EM13584620

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  Tests of transactions

As planning materiality is decreased, the auditor would most likely plan more tests of transactions to.

  What effect would reclassification have on general fund

The governmentalunit's enterprise. What effect would this reclassification have on the General Fund and the Enterprise Fund, respectively?

  Rational of recognising costs

What are the rational of recognising costs as expenses at the time of project sale? Which are the accounting factors that sometimes keep reported operating results from reflecting the change in the value of a company?

  What is the present value of the new drug

Once the patent expires, other pharmaceutical companies will be able to produce the same drug and competition will likely drive profits to zero. What is the present value of the new drug if the interest rate is 10% per year?

  Transactions on the assets-liabilities

Required: Show the effects of the below transactions on the assets, liabilities and owner's equity.

  How does opportunity cost enter into the make decision

How does opportunity cost enter into the make or buy decision? What would be an example of a decision that you might make in your personal life that would involve an opportunity cost? What decision would you make and how would you change the oppor..

  What are the basic requirements to work for the irs

What are the basic requirements to work for the IRS at level GS-5 - what are the additional requirements for grade GS-7?

  Risks responded by auditor

Tim is a Senor audit of Two Be Gone, a large publicly held company. The company recently completed an acquisition of its fifth largest competitor. What risks might this present? How will you, the auditor, respond to these risks (i.e. what actions ..

  Rebate expense and liability

What is the rebate expense and liability, respectively, shown on the 2007 financial statements dated December 31?

  Bricker enterprises purchased a machine for 100000 on

bricker enterprises purchased a machine for 100000 on october 1 2012. the estimated service life is ten years with a

  The original cost of the asset

A decidable asset has an estimated 15% salvage value .at the end of its estimated useful life the accumulated will equal the original cost of the asset under which of the following methods

  Calculate the gross margin per unit of the standard

calculate the gross margin per unit of the standard product under the current cost system.for this question only assume

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