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. 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The audit liaison role requires understanding the flow and dependencies between finance, procurement, and human resources in satisfying multi-departmental audit requests. As an Internal Control Office team member, I am responsible for understanding and communicating customers’ needs during audits, which are both crucialRead MoreExplain the Term Audit and Outline the Main Points of an Auditing Process.1201 Words   |  5 Pagesto a publication by N. Chesworth; the purpose of an audit is to assess if the business is physically capable of producing a safe product which is consistently high in quality and safety. It is also used to check legal constraints are met to an acceptable level using effective control methods ensuring consistent performance. Another constructive way the audit is used is to ensure certain measures are present to support due diligence defence. 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. Examples of the types of products it tests are middle-sized automobiles, residential dehumidifiers, flat-screen TVs, and boys’ jeans. a.) In what waysRead MoreMU1 Assignment 2 Essay1711 Words   |  7 Pagesï » ¿Question 2 MEMO To: Mr. A. CEO – Canadian Wood Toys INC. From: †¦ CAE – Canadian Woos Toys LTD Date: October 05, 2014 Subject: Identify the risks and solutions to mitigate the risks I will begin by highlighting the importance of the audit in assessing the risk and identifying the steps in reducing and mitigating the risk that our company is facing. The impact of the risks on global business it is dramatic in our days, changing the entire look of the industries and financial services