Audit Programs: standardized for an industry?

Should an audit firm use the same audit program for all companies in the same industries?

25 Accounting Multiple Choice Questions

1. How does an organization best control the realization of receivables? a. Matching sales orders, shipping documents and invoices. b. Establishing policies and procedures for the credit manager. c. Reconciling the aged receivable total to the general ledger. d. Periodically lapping receivables. 2. Sales contracts examined by the auditor for large customers and the auditor will discuss the transactions with management in order to: a. Determine collectability of an account. b. Ensure that product was shipped or services were delivered. c. Test for defalcation. d. Evaluate the proper revenue recognition in accordance with GAAP criteria. 3. Which of the following may be used as ... click for more

Auditing

1. What would you consider to be important controls over cash at your organization? 2. Given the increased emphasis on corporate fraud, should auditors be required to look aggressively for fraud factors like collusion, circumvention and management override? Why or why not?

Auditing

1. Access the Journal of Accountancy article by Michael Ramos “Evaluate the Control Environment” from October 19, 2004. Hint: You can find this article in the eRosource Internet article section. Situation: You are a senior auditor for a Big 4 audit firm and you have been assigned to a new internal client. It is a US based company that has operations all over the world. The lead partner on the engagement has indicate that during a recent planning meeting with colleagues from the other offices that will be working on this engagement it appears that most are very qualified and have dealt with large clients in the past. However, your firm’s German office is relatively small and has not real... click for more

Departures from GAAP: audit opinions are presented in good form for a qualified opinion and then an adverse opinion. Rule 203 is discussed including the application to Graham Company.

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 with a letter from a certified... click for more