
Auditing and Assurance Services, Student Value Edition (16th Edition)
16th Edition
ISBN: 9780134075754
Author: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Chris E. Hogan
Publisher: PEARSON
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Question
Chapter 12, Problem 21DQP
a.
To determine
Explain the important difference between the nature of the potential controls available for large and small companies.
b.
To determine
Criticize the positions taken by person P and C and explain the similarities and difference should exit in understanding internal control and assessing control risk for different sized companies.
c.
To determine
State whether person C’s approach is acceptable under existing auditing standards for either public or non-public companies.
d.
To determine
State the additional procedures that person P must perform if auditing the financial statements of the large public company.
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What is the gross profit of this financial accounting question?
Danforth Technologies uses an activity-based costing system with the
following three activity cost pools:
•
Fabrication: 9,500 machine-hours
•
Order Processing: 135 orders
Other: Not applicable
The company has provided the following data concerning its costs:
•
Wages and Salaries = $480,000
•
Depreciation = $190,000
•
Occupancy = $225,000
Total Costs = $895,000
The distribution of resource consumption across activity cost pools is:
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Wages and Salaries: 15% for Fabrication
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Depreciation: 10% for Fabrication
Occupancy: 12% for Fabrication
Find the activity rate for the Fabrication cost pool.
Chapter 12 Solutions
Auditing and Assurance Services, Student Value Edition (16th Edition)
Ch. 12 - Prob. 1RQCh. 12 - Prob. 2RQCh. 12 - Prob. 3RQCh. 12 - Describe how the nature of evidence used to...Ch. 12 - Prob. 5RQCh. 12 - Prob. 6RQCh. 12 - Prob. 7RQCh. 12 - Prob. 8RQCh. 12 - Prob. 9RQCh. 12 - Prob. 10RQ
Ch. 12 - Prob. 11RQCh. 12 - Prob. 12RQCh. 12 - Prob. 13RQCh. 12 - Prob. 14RQCh. 12 - Prob. 15RQCh. 12 - Prob. 16.1MCQCh. 12 - Prob. 16.2MCQCh. 12 - Prob. 16.3MCQCh. 12 - Prob. 17.1MCQCh. 12 - Prob. 17.2MCQCh. 12 - Prob. 17.3MCQCh. 12 - Prob. 18.1MCQCh. 12 - Prob. 18.2MCQCh. 12 - Prob. 18.3MCQCh. 12 - Prob. 19.1MCQCh. 12 - Prob. 19.2MCQCh. 12 - Prob. 19.3MCQCh. 12 - Prob. 20DQPCh. 12 - Prob. 21DQPCh. 12 - Prob. 22DQPCh. 12 - Prob. 23DQPCh. 12 - Prob. 24DQPCh. 12 - Prob. 25DQPCh. 12 - Prob. 26DQPCh. 12 - Prob. 27DQPCh. 12 - A CPAs client, Boos Baumkirchner, Inc., is a...Ch. 12 - Prob. 29DQPCh. 12 - Prob. 30DQPCh. 12 - Based on a cost-benefit analysis, management at...Ch. 12 - Prob. 32DQP
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