Reference no: EM131287853
1. Which of the following constitutes a weakness in the internal control for accounts receivable?
An aged trial balance of accounts receivable is prepared monthly.
Statements are mailed to customers monthly.
All credit memos are prepared by the cashier.
Subsidiary accounts receivable ledgers are balanced to the general ledger on a weekly basis.
2. Purchase cutoff procedures should be designed to test that:
Inventory purchased and received just before the balance sheet date is recorded in the year under audit.
The inventory year end balance is shown at the lower of cost or market.
The inventory that is in the possession of the company is owned by the company.
Adjustments for inventory obsolescence have been made.
3. Under which of the following set of circumstances might the auditors disclaim an opinion?
The financial statements contain a departure from generally accepted accounting principles, the effect of which is material.No longer considered appropriate.
The group auditors decide to make reference to the report of component auditor who audited a subsidiary.
There has been a material change between periods in the method of application of accounting principles.
There are significant scope limitations on the audit.
4. Which of the following best describes the auditor's responsibility in considering if a client is a going concern?
The auditor performs analytical reviews to determine if bankruptcy is imminent.
The auditor determines that related party transactions are properly disclosed.
Based on audit procedures performed, the auditor assesses whether there is substantial doubt about the entity's ability to continue as a going concern.
The auditor performs confirmation of accounts receivable and observation of inventory to obtain evidence regarding the entity's ability to continue as a going concern.
What is the need for the process capability index
: What is the need for the process capability index (Cpk) when we already have the process capability ratio (Cp)? In other words, discuss why Cp is or is not sufficient.
|
Statements in accordance with government auditing standards
: In performing and audit of financial statements in accordance with Government Auditing Standards, the auditors are required to provide a report on: To determine if all shipments were billed the auditor would:
|
Find out the equilibrium income rate and interest rate
: Obtain the IS and LM for this economy - Find out the equilibrium income rate and interest rate in this economy
|
Codification provides guidelines for business combinations
: The Codification provides guidelines for Business Combinations. In what section of the Codification can we find guidance about Business Combinations? Where specifically in the Codification can we find guidance on accounting for Income Taxes in a Busi..
|
Purchase cutoff procedures should be designed to test
: Which of the following best describes the auditor's responsibility in considering if a client is a going concern? Under which of the following set of circumstances might the auditors disclaim an opinion? Purchase cutoff procedures should be designed ..
|
What coupon rate should the company set
: The company currently has 7 percent coupon bonds on the market that sell for $1,083, make semiannual payments, and mature in 20 years - What coupon rate should the company set on its new bonds if it wants them to sell at par?
|
Explain the main objectives for an organisation
: Manage Recruitment Selection and Induction Processes - BSBHRM506 - Explain the benefits to an organisation for ensuring that the use of basic calculations and technologies are implemented into the recruitment and selection process in a timely manne..
|
In one-stage assembly system-joint replenishment system
: In a one-stage assembly system, each component facility should order at least as frequently as the end product facility. In a joint replenishment system, it might be optimal for all retailers to order less frequently than the cross-dock. In a one-sta..
|
Explain effects of new lessee accounting on balance sheet
: Explain effects of the new lessee accounting on the balance sheet, i.e., assets, liabilities and equity. Identify three exemptions to this new accounting. Discuss whether you agree with these exemptions. Also identify any potential loophole concernin..
|