Audit Review Questions - 686 Words

Auditing Final Review Questions Chloe Granahan 1. Assume that the audit team notes the client has made a significant change in its product line which requires that new equipment be purchased. Which of the following would be of greatest concern to the auditor? A. Inappropriate book value of new equipment. B. Impaired value of new equipment. C. Impaired value of old equipment. D. Inappropriate depreciation calculation for new equipment. 2. A. B. C. D. Audit procedures should be proportional to which of the following? The assessed Risks Size of the Client Size of the Firm The Assessed misstatements 3. Which of the following assertions are usually the two most relevant assertions related to†¦show more content†¦ During your audit of Brown Company you are trying to determine whether all accounts payable were recorded. Which assertion are you gathering evidence for? A. Occurrence B. Presentation and Disclosure C. Completeness. D. Valuation or allocation. 9. Which of the following procedures will usually be performed by the auditor to actively determine obsolete inventory? A. Confirmation of inventory with customers. B. Footing the inventory subsidiary ledger C. Tracing inventory ordered by the client to receiving reports D. Analysis of inventory turnover and sales reports. 10. A risk to the auditor due to the complexity of physical inventory includes the possibility of which of the following? A. Overstatement of individual items across multiple locations for cutoff testing. B. Utility of the items exceeding their cost for existence testing C. Movement of goods during existence testing D. Stocking of only one type of inventory in the warehouse for presentation and disclosure testing. 11. Bank transfer schedules are used by the auditor to address which of the following concerns? A. Kiting B. Lapping C. Embezzlement by omitting outstanding checks on reconciliation. D. All of the above 12. How will the auditor most likely utilize the bank reconciliation as evidence in the audit of cash? A. The auditor sends the reconciliation to the bank for independentShow MoreRelatedHrd Audit Literature Review683 Words   |  3 PagesLiterature Review If you believe everything you read, better not read. (Japanese Proverb) [pic] What is a literature review? A literature review is an account of what has been published on a topic in the past. Its purpose is to inform the reader what has been established about a topic and what the strengths and weaknesses are. A literature review must be defined by a guiding concept and should not be a list of all the material that you can find (Porter, S. 2008, p.49). What isRead MoreCase Analysis : Zzzz Best Company, Inc.1688 Words   |  7 PagesCompany, Inc. in your text. Answer questions #1, 2, and 4 found at the end of the case. Question # 1 A review is like an audit yet is less in extension and just gives restricted affirmation with respect to the financial statements. This varies with an audit that gives sensible affirmation that no material mistakes or illicit acts are detected. The goal of an audit is to give a sensible freedom of expressed opinion the money related proclamations taken all in all. A review does not give a premise to theRead MoreSatyam Case Study992 Words   |  4 Pageswas able to commit the financial statement fraud due to the negligence of the audit team. The audit team tasked with auditing the records of Satyam failed to confirm cash balances in bank accounts which were grossly over represented. Later it was determined that the more than one billion dollars Satyam claimed to have was actually no more than sixty-six million. During the audits of Satyam Computer Services, the audit team at PW India never sought confirmations for the cash balances that managementRead MoreACC 491 Syllabus1437 Words   |  6 Pagesfirst in a two-part series that deals with auditing a company s financial reports, internal controls, and Electronic Data Processing (EDP) systems. Topics include auditing standards, evidence, audit planning and documentation, materiality and risk, internal control, statistical tools, and the overall audit plan and program. Course Dates Nov 11, 2014 - Dec 15, 2014 Faculty Information Name : Email Address : Alternate Email Address Dwayne Thompson (PRIMARY) dwaynett@email.phoenix.edu Phone NumberRead MoreAn Internal Control Office Team Member1343 Words   |  6 PagesControl Office (ICO) audit liaison role for all communication between the Agency Office Chief Financial Officer (OCFO), the JSC OCFO, JSC Procurement Office, and various JSC organizations. 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Audits are usually carried out continuously to highlightRead MoreCase1.1 Enron Corp843 Words   |  4 PagesEnron Corporation Question 1, In my point of view, the parties are most responsible for the â€Å"crisis of confidence† on the part of the public in the accounting profession as following. †¢ The parties who create these auditing standard rules, such as SEC, Auditing Standard Board. They should publish the Sarbanes-Oxley Act earlier. They should be considered the non-auditing services for auditing clients is a serious issue earlier. †¢ The auditors of the Andersen firm. They didn’t do theirRead MoreAcct 3708 Lecture Pdf1701 Words   |  7 PagesUniversity of New South Wales School of Accounting Auditing and Assurance Services 2013 LECTURE 1 Introduction to the Audit Function Assurance Framework Australian Corporate Audits Auditing Standards Lecture Overview †¢ Announcements †¢ Overview course requirements †¢ Introduction to the course – Assurance – Auditing – Legal requirements – Auditing standards Announcements †¢ 1. Tutorial Allocation – Once classes are full no more will be admitted – No new classes will be scheduled Read MoreAccounting1680 Words   |  7 Pagesï » ¿Chapter 1 Question 1-18 Consumers Union is a nonprofit organization that provides information and counsel on consumer goods and services. A major part of its function is testing of different brands of consumer products that are purchased on the open market and then the reporting of results of the tests in Consumer Reports, a monthly publication. 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Ways to Help the Poor. Free Essays

There are different ways to address poverty and one of them is charity which means simple response to immediate need and specific situations. No one can actually eliminate poverty, but we each can do our part to reduce it around us just by starting in our community, or by starting in a local food bank that provides a necessary service for persons, who for whatever reason cannot afford a meal for themselves and their loved ones. Home for the Homeless were we can provide meals, clothing, laundry service and a resource center all free of charge. We will write a custom essay sample on Ways to Help the Poor. or any similar topic only for you Order Now Most important is help them with learning because more than one in ten children living in the increasing world never gets the chance to go to school, in that case what we can do is found scholar ships programs, and also once in school, children need to be guaranteed of a safe environment enable them to understand their potential and why it is import to learn, like classroom construction, growth and supply of equipment because basic education, gives people greater money-making opportunities and empowers them to lead healthier and more useful lives. The other way to address poverty is social justice which means ensuring those in society that they can fulfill their basic needs. The first thing we can do and a solution for all is to ask the government to lower the taxes. If taxes are lower then there would be more help for the poor because there would be more business and employment opportunities available for them to get a descent paycheck every week to feed, and cloth their family. You might be asking, why do I have to help the poor? Well children as they grow up in poverty, it seems more likely to have poor health care later in life when compared to those children who are not poor. When compared to non-poor children, children in poverty are somewhat more likely to have lower income and are a bit more likely to engage in crime. Another reason is because you’re helping them achieve their potential, so that they can contribute to the economy by improving their own situation and also when you help one you help God as well as if one body suffers we all suffer with it. How to cite Ways to Help the Poor., Papers

Macroeconomics Principles of Economics Influence

Question: Discuss about the Macroeconomics for Principles of Economics Influence. Answer: Introduction Principles of economics influence the market and impact the economy nationally and globally. The main purpose of the assignment is to critically analyze the article titled Singapore productivity growth sluggish: Nomura published in October 2015 by Grace Leong. The author in the report presents the overview of a macroeconomic event that is related to the news article. Economic theories and models are applied in the article to explain the key macroeconomic problems faced by Singapore. After analyzing the key macroeconomic problems the author finds out the author also analyzes the causes of the economic problems in an economy. The economic problems have a direct impact on the economy and the society. The author explains the impact of the economic problems on the economy of Singapore. There are various policies to mitigate the problems faced by the economy. The assignment also discusses the policies implemented by the government to solve the problem. Mainly the main concern of the assign ment is to discuss the economic condition of the economy. The main theme of the assignment is to manage the economy of Singapore to achieve long term growth in a globalised world (Borio 2014). The aim of Singapore is to increase the rate of growth of the economy by relying less on foreign labors and improving the productivity. The report suggests that the restructuring as not been successful for the economy as it has accounted for a sluggish growth over the past years. There are many reasons for the sluggish growth of the economy. The government has also implemented many policies to boost the productivity of the economy. There are various macroeconomic events attached to the article (Gandolfo 2013). Overview of the macroeconomic events There are various macroeconomic events that are attached to the article such as unemployment, aggregate demand and supply, fiscal policy, GDP, growth, interest rates, inflation rates, and government policies. The aim of the economy of Singapore is to raise the productivity growth to two to three percent. It also aims at relying less on the foreign labor and increasing the demand for the domestic labor to solve the problem of unemployment. The rate of growth of Singapore is declining after the restructuring of the economy. As per the data and market research the growth of the economy has fallen to 2.1 percent over the five years. The main reason for the fall in growth rate is fall in the global growth rate, ageing population and tightening fiscal conditions. Rise in interest rates in United States has also contributed to the sluggish growth of the economy. The economic conditions of all the economy are interconnected. Change in one economic activities of one country leads to changes i n the other economy. The debt level is rising in Singapore especially due to raise in the household and corporate debt levels. The debt level contributes to 78 percent of the total GDP of the economy. The rise in the interest rates also proves to be disadvantageous for the economy as it can have a negative impact on the property market (Coeurdacier and Rey 2013). Nomura is a Japanese financial group that evaluates the economic conditions of the countries through market research. According to the Nomura report it is essential for the countries to maintain its productivity as it is the main contributor to the GDP growth rate. Restructuring has not been successful for the economy as it has resulted in a fall in the domestic productivity growth rate. Fall in the productivity has led to the rise in the unemployment. A chain of macroeconomic events has been affected due to the restructuring of the Singapore economy such as unemployment, interest rate, inflation rate, GDP, productivity and aggregate demand and fiscal policies (Coale and Hoover 2015). Economic theories and models GDP can be defined as the gross domestic product that means the total production of goods and services in n economy. Productivity has a direct relationship with the GDP of the economy. It is the total values of goods and services produced in a particular year. The components of gross domestic product are consumption by household, investment by businesses, government expenditures, and net exports. There are three approaches to measure GDP that are production approach, income approach and expenditure approach. The fall in the aggregate demand leads to a fall in the GDP. Since the restructuring has led the productivity the GDP has fallen in the economy. The reason for the fall in the productivity is the tightened fiscal conditions that mean a fall in the money supply. Fiscal policies are the policies used by the government to monitor the functioning of the economy by altering the taxes and expenditures. Tightened fiscal policies mean fall in the government spending and increase in taxes . The main reason to use tight fiscal policies is to reduce the inflationary pressure on the economy (Ho and Wong 2016). Tight fiscal policy has resulted in a sluggish growth because it reduces the aggregate demand of goods and services in the economy. It can be explained with a help of diagram: Figure: fall in demand due to tight fiscal policy The above diagram shows that the tight fiscal policies reduce the amount of money that in turn reduces the aggregate demand in the economy. The real GDP falls from Y to Y1 as the demand curve shifts to the left. Interest rate and GDP has an inverse relation. Rise in interest leads to fall in the real GDP that in turn results in a slow growth of the economy. Same was the case with Singapore during restructuring. The rise in the interest rate lowered the investment in the economy. The property market was experiencing a downturn that led to the fall in the total productivity (Leggett 2013). It can be shown with the help of diagram. Figure: Effect of rise in interest rate The above diagram shows that as the interest rate rises in the economy the investment in the economy falls. The IS curve falls to the left. Since in long run the economy is producing at full potential level, the fall in the interest rate leads to a fall in the real GDP and in turn the economic growth gets hampered. Another macroeconomic event attached to article is rise in unemployment. The main cause for rise in the unemployment rate is mismatch in the skills and talents of the employees. The reason for the fall in productivity was rise in employment of less productive employees according to the report presented by Nomura. The country was involved in hiring employees for part time job and less skilled or old age people that were unproductive. This led to the fall in the productivity of the economy. There are various types of unemployment that exists. The type of unemployment that rule Singapore was structural unemployment that is unemployment arising due to mismatch in the skills and low productivity. Since the demand of good was low so was supply as people had less money to spend (Leifer 2013). Rise in costs of production and economic uncertainties or instability is another reason for a fall in the GDP of the economy. As the costs in the economy rises the aggregate supply falls and so does the investment. The fall in the aggregate supply shifts the curve to left. Figure: fall in GDP due to fall in aggregate supply The above diagram shows that as the cost of production increases the aggregate supply shifts to it right. The price level rises and the real GDP in the economy falls from Y1 to Y2. The foreign demand has remained stable during the time of restructuring adding to the problem for the economy. The net export that is exports minus the imports accounts only 20 to 30 percent of real GDP. The low net exports results in sluggish productivity. Another key economic concept is that of stagflation. Stagflation is a situation of rise in prices of goods and service along with the fall in the economic growth. It is the persistent rise in the prices of goods along with the stagnant demand and high unemployment. Stagflation increases the problem for the economy further as the demand for the goods is low despite of which the prices are rising further. The main problem with stagflation is that it worsens the economic conditions pushing the economy towards sluggish growth and poverty (Leong 2015). Figure: Stagflation scenario Hence, there are various economic theories and models that can be used to describe the article. The economic theories and model are used to explain the scenario of the economy and the reasons and the effects of sluggish growth. The main factors that contribute to sluggish growth of the economy are rise in unemployment, rise in interest rate, fall in GDP due to fall in aggregate demand, stagflation, fall in foreign demand and tight fiscal policies adopted by the government (Mankiw 2014). Macroeconomic problems The key macroeconomic problems that Singapore faces are as follows: Low productivity- the main primary problem with Singapore is that growth rate has been falling since 2010. The restructuring plan of Singapore did not prove to be beneficial for the economy. The target of the economy was o increase the economic growth by two to three percent. The present economic growth of the country is only 2.1 percent. Unemployment- another major problem that the country faces is rise in the unemployment rate that in turn decreases the income of the economy. The main type of unemployment that exists in the economy is structural unemployment. Structural unemployment is joblessness due to mismatch in the skills that the employees posses and the demand that employers have (Rodan 2016). Low income and low standard of living- another key major macroeconomic problem that Singapore faces is low income and standard of living. Stagflation- the prices of goods and services in the economy is rising but the economic growth is continually falling. The unemployment rate is high and so is the inflation. This situation is called stagflation that further increases the economic problem of the country (Sheffi 2013). Causes of the problems The main cause of the economic problems that Singapore faces is restructuring plan of Singapore that was launched in the year 2010. The unemployment rate is continually rising due to less availability of the job and rise in population. Another reason for the sluggish growth of Singapore economy is rise in the interest rate and tight fiscal policies. These two phenomenons leads to a fall in the aggregate demand for goods and services that in turn lead the productivity to fall. Another reason for the fall slow rise in the economy is continuous rise in prices of goods and services due to rise in the costs of production of good and high unemployment along with slow demand a situation known as stagflation (Wong and Chong 2014). The tight fiscal policy and rise in the domestic interest rates adds on to the problem for the economy. High interest rates make the investment less lucrative. The fall in the investment rate leads to a fall in capital and new business ventures that in turn decreas es the money supply in the economy. Fall in money supply leads to a fall in aggregate demand of goods and services. Another reason for the sluggish economic growth of Singapore is ageing population due to fall in the fertility rate (Room 2016). Impact of economic problems in society The economic impact of the economic issues is fall in productivity and fall in the income that in turn leads to a fall in the standard of living. The ageing population in Singapore leads to shrinkage in the workforce and low productivity. This has a direct impact on the business of Singapore. The impact of economic problems on Singapore is as follows: Vulnerable to external shocks- the low productivity leads to a fall in the foreign demand for goods and services. The demand for the exports falls that lowers the equilibrium national output pushing the sellers to face loss (Weilun 2016). Competition- globalization has led to an increase in the competition. Sluggish economic growth makes the country vulnerable to competition. Singapore has lost its comparative advantage due to the key macroeconomic problem that it faces. Social tensions and crime rates- as the unemployment rate is raising the crime rate also increases putting a negative impact on society. Since people do not have money to live a good and standard life they opt for the next method that is easier such as theft, murder that puts a negative impact on society (Swee 2013). Suicide rates- the suicides are also rising especially in case of male population simply because they dont have money to feed theory family. So the only option left with them is to take away ones life. The rise in suicides ahs both direct and indirect impact on society and economy of Singapore (AsiaOne 2016). Policies implemented by government to solve the problem The economic problems that the country faces can be reduced by framing proper policies by the government. To boost the economy and increase its productivity the government expenditure should increase. The rise in the government expenditure will increase the aggregate demand and hence will further boost the GDP growth. The government should also focus on reducing unemployment by opening more job opportunities for the youth. Proper training and knowledge should be given to the youth so that the employers employ the youth that will result in higher productivity in future. The main tool of government to solve the economic problems is fiscal policies that include the taxes and government expenditure (Scarth 2014). Rise in government expenditure for the benefit of economy such as spending on infrastructure will prove to be beneficial for the economy. The central bank should also try to reduce the interest rates to boost the investment. Rise in investment will increase the aggregate demand and the overall gross domestic product. Policies should be implemented to reduce the prices of goods and services in the economy. There are various government statutory boards that look into the economic problems of Singapore that includes: Economic development board (EDB) Standards, productivity and innovation board (SPRING Singapore) Agency for science, technology and research International enterprise Singapore (IE Singapore) (Balassa 2014). Conclusion No economy is perfect. All the economic events and activities are inter-connected with each other. Change in one has its affect on the other. The main problem with the economy is the sluggish growth that the economy is facing since the restructuring policies since 2010. There are various factors that contribute to sluggish growth of the economy such as low income, rise in unemployment, low demand and high prices of goods and services. Government has adopted various policies to solve the key economic issues that Singapore faces. References AsiaOne. (2016).Challenges facing Singapore's economy. [online] Available at: https://news.asiaone.com/news/singapore/challenges-facing-singapores-economy [Accessed 30 Jun. 2016]. Balassa, B., 2014. Development Strategies'.International Economics and Development: Essays in Honor of Ral Prebisch, p.159. Borio, C., 2014. The financial cycle and macroeconomics: What have we learnt?.Journal of Banking Finance,45, pp.182-198. Coale, A.J. and Hoover, E.M., 2015.Population growth and economic development. Princeton University Press. Coeurdacier, N. and Rey, H., 2013. Home bias in open economy financial macroeconomics.Journal of Economic Literature,51(1), pp.63-115. Gandolfo, G., 2013.International Economics II: International Monetary Theory and Open-Economy Macroeconomics. Springer Science Business Media. Ho, Y.P. and Wong, P.K., 2016. The Impact of RD on the Singapore Economy: A Time Series Analysis.Available at SSRN 2719442. Leggett, C., 2013.Workforce development and skills formation in Singapore: developing and augmenting talent(Vol. 118, pp. 89-114). Routledge. Leifer, M., 2013.Singapore's foreign policy: coping with vulnerability(Vol. 10). Routledge. LEONG, G. (2015).Singapore productivity growth sluggish: Nomura. [online] The Straits Times. Available at: https://www.straitstimes.com/business/economy/singapore-productivity-growth-sluggish-nomura [Accessed 30 Jun. 2016]. Mankiw, N.G., 2014.Principles of macroeconomics. Cengage Learning. Rodan, G., 2016.The political economy of Singapore's industrialization: national state and international capital. Springer. Room, R. (2016).Monetary Policy Macroeconomic Review. [online] Mas.gov.sg. Available at: https://www.mas.gov.sg/monetary-policy-and-economics/monetary-policy/macroeconomic-review.aspx [Accessed 30 Jun. 2016]. Scarth, W., 2014. Macroeconomics.Books. Sheffi, Y., 2013. Logistics-intensive clusters: global competitiveness and regional growth. InHandbook of Global Logistics(pp. 463-500). Springer New York. Swee, G.K., 2013.The practice of economic growth. Marshall Cavendish International Asia Pte Ltd. Weilun, S. (2016).Restructuring fails to lift productivity, drag on economy to go on: Nomura. [online] The Business Times. Available at: https://www.businesstimes.com.sg/government-economy/restructuring-fails-to-lift-productivity-drag-on-economy-to-go-on-nomura [Accessed 30 Jun. 2016]. Wong, J. and Chong, C., 2014. The Political Economy of Singapores Unique Relations with China.Advancing SingaporeChina Economic Relations, p.32.