Third Auditing Multiple Choice Questions

20. Sound internal control procedures dictate that defective merchandise returned by customers should be presented initially to the a. Accounts receivable supervisor. b. Receiving clerk. c. Shipping department supervisor. d. Sales clerk. 21. If a control total were computed on each of the following data items, which would best be identified as a hash total for a payroll IS application? A) Total debits and total credits. B) Net pay. C) Department numbers. D) Hours worked. 22. When auditing financial statements and finding indications of a possible misappropriation of assets, independe... click for more

Auditing - Public role of auditors in America

In a discussion between Peters and Ferrel, Two auditing students, Peters made the following statement: “A CPA is a professional person who is licensed by the state for the purpose of providing an independent expert opinion on the fairness of financial statements. To maintain an attitude of mental independence and objectivity in all phases of audit work, it is advisable that the CPA not fraternize with client personnel. The CPA should be courteous but reserved and dignified at all times. Indulging in social contacts with clients outside business hours will make it more difficult to be firm and objective if the CPA finds evidence of fraud or of unsound accounting practices.” Ferrel replied as ... click for more

Internal Control

•Research current periodicals and journals (between 2005 and 2007-published year,) : You pick one article related to Internal Control. -> not too long article •Prepare your summary (2 pages ->see below) based on your research. (You need to consider the summary contents as the form of presentation skills) You have to attach original article and your summary. o Briefly introduce the topical area of interest. o Identify the relevant articles and summarize the issues you have identified based on your research. o Discuss how these issues relate to the course topic. o Provide your assessment of the issues you’ve identified. For example,  What are the implications for audit... click for more

Auditing

12.48 Departures from GAAP. On January 1, Graham Company purchased land (the site of a new building) for $100,000. Soon thereafter, the Highway Department announced a new feeder roadway route that would run alongside the site. The effect was a dramatic increase in local property values. Nearby comparable land sold for $700,000 in December of the current year. Graham shows the land at $700,000 in its accounts, and, after reduction for implicit taxes at 33 percent, the fixed asset total is $400,000 larger, with the same amount shown separately in a stockholders’ equity account titled “Current value increment.” The valuation is fully disclosed in a footnote to the financial statements, along wi... click for more

Five Discussion Questions for Auditing - ethics, regulation, integrity

1. How much should the government regulate the CPA profession? 2. Given the recent accounting scandals, how much confidence should the public really have in financial statement audits? 3. Are audits as important for internal managers as they are for outside investors? Why or why not? 4. In light of recent audit failures, are current audit standards sufficient to ensure the integrity of audit opinions? Why or why not? 5. What can be done to ensure auditors are abiding by the Code of Ethics?