7-36 (OBJECTIVES 7-7, 7-8) You are the in-charge auditor on the audit of VandervoortCompany and are to review the audit schedule shown below.a. List the deficiencies in the audit schedule.b. For each deficiency, state how the audit schedule could be improved.c. Prepare an improved audit schedule, using an electronic spreadsheet software pro-gram. Include an indication of the audit work done as well as the analysis of the clientdata (instructor's option).RequiredVandervoort CompanyA/C # 110-Notes ReceivableSchedulePrepared by JDApproved by PP 2-15-17N-I Date1-21-1712-31-16MARTIN-APEX CO.AJAX, INC.JJ.CO.P. SMITHPETERSONTENT CO.Date madeDate duePaid to date6/15/156/15/1711/21/15DemandPaid$3,59111/1/15$200/mo.12/31/16x $ 13,1807/26/16$1,000/mo.9/30/1625,0005%50,0005/12/15Demand9/3/16$400/mo.11/30/16x $ 12,000 xNonePaidFace amount$5,000$2,100Interest rate5%5%5%5%6%Value of securityNoneNone$ 24,000None$ 10,000Note Receivable:12/31/15 bal.Additions$4,000 py$ 3,591 py $ 12,780 py $$2,100 py $25,00012,000Payments(1,000)$(3,591)(2,400) x$ 10,380(5,000) x(2,100)2$(1,600) x$ 10,40012/31/16 bal.$3,000$02$20,000ТОTALSCurrent$3,0002,4007,98012,0008,000$ 4,800$22,2005,60021,580$ 10,400 @ $43,780tbtbLong-termTotal end. bal.$3,00024$ 10,380@ $20,000 @2$tbInterest Receivable:12/31/15 bal.Interest earnedInterest received12/31/16 bal.$ 104 py2$0 py $24 py $2$0 ру105$0$ 128175X1025774681621,589(102)24(601)2$X(200) х(105)$ 0(108) x(1,116)$ 601 a/r$ 2792$2682$54X= Testedpy = Agrees with prior year's audit schedules.tb = Agrees with working trial balance.#= Agrees with miscellaneous income analysis in operations w/p.alr = Agrees with A/R lead schedule.Chapter 7/ AUDIT EVIDENCE257

Auditing is the verification of accuracy and correctness of books of accounts by independent persons…

7-36 (OBJECTIVES 7-7, 7-8) You are the in-charge auditor on the audit of Vandervoort Company and are to review the audit schedule shown below. a. List the deficiencies in the audit schedule. b. For each deficiency, state how the audit schedule could be improved. c. Prepare an improved audit schedule, using an electronic spreadsheet software pro- gram. Include an indication of the audit work done as well as the analysis of the client data (instructor's option).

7-36 (OBJECTIVES 7-7, 7-8) You are the in-charge auditor on the audit of Vandervoort Company and are to review the audit schedule shown below. a. List the deficiencies in the audit schedule. b. For each deficiency, state how the audit schedule could be improved. c. Prepare an improved audit schedule, using an electronic spreadsheet software pro- gram. Include an indication of the audit work done as well as the analysis of the client data (instructor's option).

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: M&S CPA Firm identify the below control transactions relate to the integrated audit of XYZ Company…

A: Internal controls are controls established for accuracy and accomplishment of objectives of the…

Q: 1. Explain how client internal controls can be improved through the proper installation of IT. 2.…

A: Implementation of Access Controls: IT systems can enforce strict access controls, ensuring that only…

Q: Imagine that you are a senior auditor and your firm has been selected to audit a medium-sized…

A: The objective of this question is to understand the four phases of an audit, the key factors that…

Q: of these reasons are important to discuss the types of service with management before performing the…

A: All of these reasons are important to discuss the types of service with management before performing…

Q: 6 Question 2: Auditing I. Explain the terms: "Corporate failure" and "Audit failure". ( II. Auditors…

A: The process of formally reviewing and confirming a company's financial records is called an…

Q: Audit programs

A: Auditing means the exercise of audit procedures to collect the evidence that enables the auditor to…

Q: You are in-charge of audit team of ABC Cement Company and you have been assigned to verify the…

A: The auditing will be conducted to find whether there are any errors or mistakes in the financial…

Q: Star audit firm have started the annual audit of Carrefour Muscat. The auditors have a long meeting…

A: An audit may be defined as the critical examination of financial information of any entity or it can…

Q: The Sarbanes-Oxley Act (SOX) requires that an auditor must O issue an internal control report…

A: The Sarbanes Oxley Act requires all the financial reports so that it can include the Internal…

Q: An IT auditor is performing a test of the company's user access administration process, and has…

A: Auditors are the professionals who check each detail furnished by the client through his/her…

Q: Describe SIX audit risks, and explain the auditor's response to each risk, in planning the audit of…

A: Introduction:- Unless the audit opinion states that the financial results are devoid of any factual…

Q: Si: The results of tests of controls are used to assess control risk, which is crucial in assessing…

A: Test of controls is the audit procedures that are used to evaluate the organization's internal…

Q: In order to help the audit team assigned to the audit of a major client's property, plant and…

A: Financial statement assertions are the representations or claims made by management regarding the…

Q: STATEMENT 1: Most of the information included in the permanent file are accumulated during the…

A: Auditing means the independent checking of company operation by outsider. Auditor is a qualified and…

Q: A representative of the PMO emailed you to notify you of an internal audit they want to perform on…

A: The Project management office is an office set up in an organization that ensures that the company…

Q: n. The audit engagement letter is sometimes initiated by the auditor. o. Predecessor auditors can…

A: Audit Engagement Letter Audit engagement letter documents the scope and objective of the audit and…

Q: John Josephs an audit manager for Tip, Acanoe & Tylerto, was asked to speak at a dinner meeting of…

A: Answer:- A. Client Acceptance Pre Planning Establish materiality and assess risk Plan the audit…

Q: The audit team of Swift Logistics Company presents the scope of audit and also determines the time…

A: Introduction: Opening meeting: Opening meeting is the meeting conducted to introduce audit team to…

Q: ou are auditing a client that supplies electrical products to retail stores and electrical…

A: Auditing is the independent examination of any organization's financial information. Auditing exists…

Q: Which of the following types of messages might the Active Auditor display? Question 9 options:…

A: Solution: Following type of messages might the active auditor displays: 1. Warnings that indicate…

Q: our controls. (Present the answer in three columns, headed “Risk”, “Control” and

A: This commonplace establishes necessities concerning the method of characteristic and assessing risks…

Q: In the situation you are an auditor who is task to do an audit engagement. Make an Audit Plan that…

A: Meaning of Audit Plan : Audit planning is defined as the process in which the strategy is designed…

Q: 1) Internal auditing is going to be performing an assurance engagement dealing with controls over…

A: Assurance Engagement Assurance engagement which was conducted by the internal auditors to get the…

Q: Present your answers in the following structure: Type of procedure No. (i) (ii) Assertion tested

A: AUDIT PROCEDURES An audit is a procedure in which the financial statements of a company or firm are…

Question

100%

7-36 (OBJECTIVES 7-7, 7-8) You are the in-charge auditor on the audit of Vandervoort
Company and are to review the audit schedule shown below.
a. List the deficiencies in the audit schedule.
b. For each deficiency, state how the audit schedule could be improved.
c. Prepare an improved audit schedule, using an electronic spreadsheet software pro-
gram. Include an indication of the audit work done as well as the analysis of the client
data (instructor's option).
Required
Vandervoort Company
A/C # 110-Notes Receivable
Schedule
Prepared by JD
Approved by PP 2-15-17
N-I Date
1-21-17
12-31-16
MARTIN-
APEX CO.
AJAX, INC.
JJ.CO.
P. SMITH
PETERSON
TENT CO.
Date made
Date due
Paid to date
6/15/15
6/15/17
11/21/15
Demand
Paid
$3,591
11/1/15
$200/mo.
12/31/16
x $ 13,180
7/26/16
$1,000/mo.
9/30/16
25,000
5%
50,000
5/12/15
Demand
9/3/16
$400/mo.
11/30/16
x $ 12,000 x
None
Paid
Face amount
$5,000
$2,100
Interest rate
5%
5%
5%
5%
6%
Value of security
None
None
$ 24,000
None
$ 10,000
Note Receivable:
12/31/15 bal.
Additions
$4,000 py
$ 3,591 py $ 12,780 py $
$2,100 py $
25,000
12,000
Payments
(1,000)
$(3,591)
(2,400) x
$ 10,380
(5,000) x
(2,100)
2$
(1,600) x
$ 10,400
12/31/16 bal.
$3,000
$0
2$
20,000
ТОTALS
Current
$3,000
2,400
7,980
12,000
8,000
$ 4,800
$22,200
5,600
21,580
$ 10,400 @ $43,780
tb
tb
Long-term
Total end. bal.
$3,000
24
$ 10,380
@ $
20,000 @
2$
tb
Interest Receivable:
12/31/15 bal.
Interest earned
Interest received
12/31/16 bal.
$ 104 py
2$
0 py $
24 py $
2$
0 ру
105
$0
$ 128
175
X
102
577
468
162
1,589
(102)
24
(601)
2$
X
(200) х
(105)
$ 0
(108) x
(1,116)
$ 601 a/r
$ 279
2$
268
2$
54
X= Tested
py = Agrees with prior year's audit schedules.
tb = Agrees with working trial balance.
#= Agrees with miscellaneous income analysis in operations w/p.
alr = Agrees with A/R lead schedule.
Chapter 7/ AUDIT EVIDENCE
257

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1- Introduction

VIEW

Step 2-solution (a) & (b)

VIEW

Step 3-Solution (c)

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Continuous and Computer Assisted Audit Techniques (CAAT)

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Statement 1: In first-time audits, the audit program is completed during the planning phase of the audit. Statement 2: The auditor's primary consideration regarding the client's internal controls is the provision of constructive suggestions to management regarding the company's internal controls. a. 1st statement is false, 2nd statement is true b. 1st statement is true, 2nd statement is false c. both statements are true d. both statements are false
defines and describes each audit procedure 1. Physical examination 2.Confirmation 3.Inspection 4.Analytical procedures 5. Inquiry/interrogation 6.Recalculation 7.Perform again (reperform) 8.Observation
You are an audit student who has been invited to attend an interview for a graduate training program in auditing.At the interview you are asked question relevant to audit procedures. You are required to briefly describe the seventypes of audit procedures which can be used to obtain audit evidence
S1: Most of the audit procedures in examining the financial statement components are performed by the junior or associate auditors. S2: At the completion stage, the reviewer of working papers should check if the approved adjusting journal entries have been properly posted and the amounts in the working trial balance agree with the amounts shown in the lead schedules. a. BOTH STATEMENTS ARE TRUE b. BOTH STATEMENTS ARE FALSE c. ONLY S1 IS TRUE d. ONLY S2 IS TRUE
{Auditing} 8. One of the duties of an auditor is to prepare an audit plan for the smooth conduct of audit with due care and to detect fraud and errors. What other duty an auditor is expected to perform from options given below: a. Suggests changes in financial statements, if necessary b. Responsible to form opinion c. All the options d. To certify about the accuracy of financial statement
IT Controls: Systems Development, Program Changes, and Application Controls
What are key audit matters? How do these affect the format of the audit report? maximum 200 words)b) Stewart Jones is reviewing the results of the subsequent events audit procedures. Stewart iswriting a report for his audit partner based on these results and will be attending a meetingtomorrow with the partner and representatives of the company to discuss them. The issue will bewhether the financial report should be amended, or additional notes included for thesesubsequent events.Many of the items are not material and Stewart will recommend that no action be taken withrespect to these. However, there are several items that Stewart believes are material and shouldbe discussed at the meeting. These are as follows.(a) The board is planning to issue shares in a private placement on 15 August. (b) The share issue is to fund the purchase of a 60 per cent stake in another company. Thenegotiations are in the final stages and although the contract is not yet signed it will be signedby 15…
Distinguish between errors and irregularities. Which do you think concern the auditors the most? 3. Distinguish between errors and irregularities. Which do you think concern the auditors the most? 4. Compare and contrast the following disaster recovery options: empty shell, recovery operations center, and internally provided backup. Rank them from most risky to least risky, as well as most costly to least costly . 5. Auditors examine the physical environment of the computer center as part of their audit. Many characteristics of computer centers are of interest to auditors. What are they? Discuss. 6. What is a disaster recovery plan? What are the key features? 7. What are some typical problems with passwords? 8. What are biometric devices? 9. In a distributed data processing system, a database can be centralized or distributed. What are the options? Explain. 10. Explain the role of accountants in the conceptual design stage. 11. Explain why the Systems Development Life Cycle is of…
Ryan is an audit manager in a reputed tax and audit firm. He is incharge of the firm's engagement's objectives, scope, action plans and audit recommendations. He has to release the final audit results for the financialyear along with the internal auditor's options/ results. Which approach will best help him to furnish the details? A) Using external source and process reports B) Using assignment and feedback charts C) Using visualization and interactive reports D) Using accounts payable and receivable reports
Explain all the five steps involved in the information system based audits in your own words. How would an auditor verify the source documents while auditing accounting information systems where business is conducted fully online?