Cornerstones of Cost Management (Cornerstones Series)
3rd Edition
ISBN: 9781285751788
Author: Don R. Hansen, Maryanne M. Mowen
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 1, Problem 13P
1.
To determine
Explain the ethical consideration of the controllers’ apparent lack of action by discussing specific provisions of the standards of ethical conduct for
2.
To determine
Describe the steps that Person M must take to resolve the situation.
3.
To determine
Describe actions that HHP takes to improve the ethical situation within the company.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Determine the following as a result of your audit:
subquestion a. How much is the correct amount of interest expense that should be reported in its Statement of Comprehensive Income for the period ending December 31, 2023?
subquestion b. As an audit manager, you review the working papers of your audit staff and senior auditor and summarized the proposed adjusting entries (PAJE’s): Your proposed adjusting journal entry will include a credit to premium on note payable of?
please show solution.
The External Auditors of Mutual Life Ltd. are planning to use its internal auditors' work for the audit. They have to do some checks to include the internal auditors' reporting arrangements and qualifications. The external auditors did a test of entries in the non-current assets register and the updating movements on the annual budget were done. The external auditors having satisfied themselves with the quality of work that was done by conducting the entries.
Required:
In addition to the above test, state other types of tests that could be used to prove the completeness of the non-current assets records, including the non-current assets register.
Excerpt from the auditor’s report of the World Health Organization (WHO) financial statements for year ended December, 2018 is given as under. How would you classify the auditor’s opinion? What implications will this auditor’s opinion will have on your analysis?
In line with our mandate, we audited the financial statements of WHO in accordance with the Financial Regulations and in conformity with the International Standards on Auditing (ISA) issued by the International Auditing and Assurance Standards Board. We concluded that the financial statements present fairly, in all material respects, the financial position of WHO for the financial year ended 31 December 2018, and its financial performance, the changes in net assets/equity, the cash flows, and the comparison of budget and actual amounts in accordance with the International Public Sector Accounting Standards (IPSAS). Based on our conclusion, we issued an unmodified audit opinion on the Organization’s financial statements for the…
Chapter 1 Solutions
Cornerstones of Cost Management (Cornerstones Series)
Ch. 1 - What is cost management, and how does it differ...Ch. 1 - How do cost management and financial accounting...Ch. 1 - Identify and discuss the factors that affect the...Ch. 1 - What is a flexible manufacturing system?Ch. 1 - Prob. 5DQCh. 1 - What is the difference between a line position and...Ch. 1 - The controller should be a member of the top...Ch. 1 - Prob. 8DQCh. 1 - What is the role of cost management with respect...Ch. 1 - Prob. 10DQ
Ch. 1 - What is business ethics? Is it possible to teach...Ch. 1 - Firms with higher ethical standards will...Ch. 1 - Prob. 13DQCh. 1 - Prob. 14DQCh. 1 - What are the two parts to the CMA examination?...Ch. 1 - Classify each of the following actions as either...Ch. 1 - Hepworth Communications produces cell phones. One...Ch. 1 - Prob. 3ECh. 1 - Consider the following thoughts of a manager at...Ch. 1 - Bill Christensen, the production manager, was...Ch. 1 - Each of the following scenarios requires the use...Ch. 1 - Prob. 7ECh. 1 - Lily Shultz is a junior majoring in hotel and...Ch. 1 - John Biggs and Patty Jorgenson are both cost...Ch. 1 - Emily Henson, controller of an oil exploration...Ch. 1 - Prob. 11PCh. 1 - Emery Manufacturing Company produces component...Ch. 1 - Prob. 13P
Knowledge Booster
Similar questions
- The auditors have determined that each of the following objectives will be a part of the audit of SSC Corporation. While several procedures will ordinarily address an audit objective, select the procedure most directly related to the audit objective. Each procedure may be used once, more than once, or not at all. 1. All receivables that should be recorded are recorded as of year-end. 2. Recorded receivables are at appropriate net realizable values. 3. Recorded receivables exist. 4. The client has rights to recorded year-end receivables. 5. The presentation and disclosure of receivables are adequate. Trace a sample of sales invoiced from late in December to the sales journal and to postings in accounts receivable and sales amounts. Review the aged trial balance for significant past due accounts. Review board of director minutes and underlying contracts and sales terms with customers. Vouch year-end accounts…arrow_forwardThe Sarbanes-Oxley Act (SOX) requires that an auditor must issue an internal control report following the evaluation of internal controls. provide continuous consulting services to help prevent fraud. issue a sustainability report along with the internal control report. rotate who can lead an audit every three years.arrow_forwardMohsin Auditors is an official auditor for PDO. The audit has to begin from the first week of January 2021 for the year ended 2020. The auditors are coming up with clear objectives of audit. The auditors have already decided the audit methodology. The audit methodology of the auditors shall be based on: Issued discussed during the entrance meeting with management of PDO Audit program of Auditors Corrective action plan and their implementation Issues identified during the auditarrow_forward
- The Office of the Auditor General is mandated to conduct audits of all public institutions inJamaica. It has been observed that the same observations and recommendations weremade in the last five years in the Auditor General’s Reports concerning increased misuseand misapplication of public funds.The Ministry responsible for local government has decided to engage a consultants firmto review the transparency and accountability of the public funds by the council.The lead consultant in your firm has asked you to conduct this review. The following werefound during your review:• The main source of funds for the Council are the grants received from the centralgovernment and levies from local businesses operating in the parish.• The Council maintains financial records and prepares financial statements annuallywhich are subject to audit by the Office of the Auditor General.• The Council received a grant of US$20 million for the construction of ten communitycenters, one each in the ten…arrow_forwardAssume an auditor wishes to execute a meaningful analytical technique to offer audit evidence to assess EarthWear's $983,00 interest expense valuation or allocation allegation in 2018. The auditor will accomplish this by calculating an estimate of what the interest cost should be. What is a fair expectation estimate for the auditor?arrow_forwardYour senior auditor approved the planning materiality you just established. You are now preparing to establish your performance materiality for accounts payable and revenue. Your senior auditor tells you that the materiality judgement for accounts payable is 50%, and the materiality judgement for revenue is 65%. What is the performance materiality for accounts payable and revenue? Show your work. Your work should show: APPROPRIATE AMOUNT x AP MATERIALITY JUDGEMENT = AP PERFORMANCE MATERIALITY APPROPRIATE AMOUNT x REVENUE MATERIALITY JUDGEMENT = REVENUE PERFORMANCE MATERIALITYarrow_forward
- Please help me with this case... thank you!!arrow_forwardWhich of the following is true with respect to PCAOB inspections of accounting firms?a. All firms performing audits of public companies are required to have annual inspectionsconducted by the PCAOB.b. PCAOB inspections review a sample of audits conducted by firms as well as the firm’ssystems of quality control.c. All results of PCAOB inspections are made available to the public following the inspection.d. Firms performing audits of 100 or fewer public entities may elect to have a peer reviewconducted through the AICPA in lieu of a PCAOB inspection.arrow_forwardBest Wood Furniture, Inc., a non-issuer that produces wood furniture, is undergoing a year 2 audit. The situations below describe changes made during year 2 that may or may not contribute to audit risk. For each situation, select the impact, if any, that the situation has on a specific component of audit risk for the year 2 audit. Selections are for once, more than once, or not at all. Consider each situation independently. Situation Impact on audit risk In year 2, the auditor noted that the company's newly hired purchasing agent was not obtaining competitive bids for all major purchase requisitions as required. Early in year 2, the company expanded its warranty program to cover additional major products in an effort to increase sales. The audit partner decided that the audit team needed to perform additional tests of detail over payroll in addition to the substantive analytical procedures done last year over payroll.…arrow_forward
- Star audit firm have started the annual audit of Carrefour Muscat. The auditors have a long meeting with their management. Their target is to conduct the audit during one week. The auditors have started their work. identify which of the following is related to their audit process. O a. Discussing corrective action plan O b. Identifying the risk Oc Conduct interviews O d. Create audit procedure and planarrow_forwardIn an audit of Malakat Mall Hypermarket for the financial year ended 30 June 2020, you discovered sufficient and reliable evidence on the following highly material independent subsequent events. An audit report was issued on 12 September 2020 and the client publishes its financial statement by 25 September 2020. State the appropriate alternative action for the situation. The alternative actions are as follows: • Adjust the June 30, 2020, financial statements. • Disclose the information in a footnote of the June 30, 2020, financial statements. • Request the client to recall the June 30, 2020, statements for revision • No action is required. The events are as follows. iv. On September 15, 2020, the auditor discovered that Ahsan-Ventures Incorporated, a wholly-owned subsidiary of Malakat Mall Hypermarket issued AED5 million, 10-year Sukuk at a 6 percent profit sharing rate in 2018. Malakat Mall was listed as a guarantor for the Sukuk. Since the spread of the Covid-19 outbreak, Ahsan-…arrow_forwardIndicate whether you agree or disagree with the following statements and explain your reasoning. Teresa Dziuba was assigned to the Heathcliff Energy audit. She was ensuring that when recognizing revenues, all transactions and events that should have been recorded have been recorded. She was testing the existence assertion. Assume materiality for the financial statements as a whole is $200,000 and performance materiality for accounts receivable is set at $80,000. If the auditor finds one receivable that is overstated by $110,000, the auditor can ignore the error as it is less than $200,000 (overall materiality). Steve Slopak, the group partner was reviewing the work of Manny Fernandez on the Lake Shore Gold account. Manny asked Steve for an explanation on how audit risk_ould affect his work. Steve answered: “Audit risk affects the quantity and quality of evidence gathering."arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Auditing: A Risk Based-Approach (MindTap Course L...AccountingISBN:9781337619455Author:Karla M Johnstone, Audrey A. Gramling, Larry E. RittenbergPublisher:Cengage LearningCornerstones of Cost Management (Cornerstones Ser...AccountingISBN:9781305970663Author:Don R. Hansen, Maryanne M. MowenPublisher:Cengage LearningAuditing: A Risk Based-Approach to Conducting a Q...AccountingISBN:9781305080577Author:Karla M Johnstone, Audrey A. Gramling, Larry E. RittenbergPublisher:South-Western College Pub
- Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
Auditing: A Risk Based-Approach (MindTap Course L...
Accounting
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser...
Accounting
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Cengage Learning
Auditing: A Risk Based-Approach to Conducting a Q...
Accounting
ISBN:9781305080577
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:South-Western College Pub
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,