Related Party Transactions: An Audit Program

Most business transactions result from “arm’s length’ dealing. When parties to a transaction are related, the objectivity expected in unrelated bargaining may be lost. Any loss of objectivity may require reporting in the financial statements for users to be able to properly evaluate the company’s financial condition and results of operations. Consequently, material related party transactions must be disclosed. SFAS 57, Related Party Disclosures, identifies the requirements. Required: Design an audit program to reveal related party transactions

Internal Control Components: definition and application

What internal controls components are common among long-term assets and liabilities, and equity accounts? What components are unique to each? How can an auditor assess these controls? What are the key management assertions related to long-term assets and liabilities? What are the most important assertions related to long-term assets and liabilities? How will auditors test these assertions? What are the key management assertions related to equity? What are the most important assertions related equity? How will auditors test these assertions? What are the key management assertions related to cash? What are the most important assertions related cash? How will auditors test these asse... click for more

Stockholders' Equity: audit program for Zeitlow Corporation

A CPA firm is engaged in the examination of the financial statements of Zeitlow Corporation for the year ended 12/31/06, Zeitlow Corporation's financial statements and records have never been audited by a CPA. The stockholders' equity section of the balance sheet at 12/31/06 is Stockholders' Equity: Captial stock - 10,000 shares of $10 par value authorized: 5,000 shares issued and outstanding $50,000 Capital contributed in excess of par value of capital stock 58,800 Retained earnings 105,000 Total stockholders equity ... click for more

Need help answering audit questions about wrapping up an audit, other types of engagements, a 'going concern' qualification and other types of audit opinions.

What are the steps that are required for an auditor to finalize the audit? Which steps are the most crucial to the outcome of the audit? How will these steps affect the final audit decision? What other types of engagements are auditors involved in besides auditing? What are the other types of reports that auditors will issue? What types of responsibilities does the auditor assume in these engagements? What is meant by the evaluation of a client’s ability to continue as a going concern? What are some situations that would require modification of the auditor’s opinion related to going concern? What is the auditor’s responsibility for assessing a client’s ability to continue as... click for more

Auditing: standards of field work applied to auditing of accounts receivable for Throne Company

11-28) Elizabeth Cole, the senior auditor-in-charge of the audit of Throne Company, a small manufacturer, was busy writing the audit report for another engagement. Accordingly, she sent Martine Joseph, a recently hired staff assistant if the CPA firm, to begin the audit of Throne Company, with the suggestion that Joseph starts with the accounts receivable. Using the preceding year�s audit working papers for Throne Company as a guide, Joseph prepared a trial balance of Throne�s trade accounts receivable, aged them, prepared and mailed positive confirmation requests, examine underlying documents plus other support for charges and credits to the Accounts Receivable ledger account, and perfo... click for more