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The internal auditors are asked to review the budget data in every area each year for relevance and reasonableness before the budget is approved.
How might the auditor's consideration of materiality and internal control differ from the audit of a commercial enterprise?
Tom Watson, internal audit director, is now focusing on the activities of the Capital Budgeting Group in an attempt to determine the efficiency.
You only need to cover the general points about the deduction. You need not describe every detail ornuance.
As production plans change, rush and expedite orders are made by production directly to the purchasing department.
Identify the internal control deficiencies and recommend improvements that the internal audit staff of Superior Co.
How much revenue is needed to break even? How many bats and gloves would this represent?
Seminole management has figured, based on their experience dealing with the cash flows of the company, that there should be a cushion- a safety stock-of cash.
You are a newly appointed member of the Financial Services Division of Envivo Motors(UK), a company that manufactures cars.
Journalize the revenue transaction, and indicate how recording this revenue in December would affect the current ratio.
Kochyo purchases an inventory of spare parts on credit from its suppliers for $15,000.
Design analytical procedures to evaluate the reasonableness of the ending inventory account.
Assume that $2,000,000 is considered material for audit planning purposes for 2013. Do any of the fluctuations in the computed ratios indicate a possible .
How might you use the information presented above to audit interest expense and interest payable accounts?
Prepare the detailed audit program for the audit of the three accounts comprising the stockholders' equity section of Pate Corporation's balance sheet.
Explain how the auditor should verify the unamortized bond discount or premium.
The total of notes payable in the footnotes agrees with the total of notes payable on the balance sheet.
What should be the emphasis in the verification of notes payable in this situation? Explain.
The debtor company shall endeavor to maintain a working capital ratio of 2 to 1 at all times, and in any fiscal year following a failure to maintain said ratio.
List the audit procedures that should ordinarily be performed to verify the issue of the mortgage, the balance in the mortgage and interest payable accounts.
Are all entries in the owners' equity accounts authorized at the proper level in the organization?
Analyze all owners' equity accounts for the year and document the nature of any recorded change in each account.
How does the decline in stock price affect your assessment of client business risk and acceptable audit risk?
Explain the relationships among the initial assessed control risk, tests of controls and substantive tests of transactions for cash receipts.
Give one example in which the conclusions reached about internal controls in cash disbursements will affect the tests of cash balances.