a.
Concept Introduction:
To discuss:The evidence in the working paper to support the fact that the audit was adequately planned and the assistance was properly supervised
b.
Concept Introduction:
Audit procedure: audit procedure is a method performed by the auditor, to gather the possible document that helps the auditors to make a strong conclusion. The audit procedure helps to determine the nature of the financial information provided by the customers and all kinds of risks that occur in the financial statements. Audit procedure performs different test of controls to avoid the risks.
The substantive test that should expect to find in working paper to document management’s assertion about completeness

Want to see the full answer?
Check out a sample textbook solution
Chapter 13 Solutions
AUDITING & ASSURANCE SERVICES CONNECT AC
- You invest $5,000 in a project, and it generates $1,250 annually. How long will it take to recover your investment? Exparrow_forwardThe value of an investment grows from $10,000 to $15,000 in 3 years. What is the CAGR?Soovearrow_forwardSuppose that the treasurer of IBM has an extra cash reserve of $100,000,000 to invest for six months. The six-month interest rate is 9 percent per annum in the United States and 8 percent per annum in Germany. Currently, the spot exchange rate is €1.07 per dollar and the six-month forward exchange rate is €1.05 per dollar. The treasurer of IBM does not wish to bear any exchange risk. Where should they invest to maximize the return? Required: The maturity value in six months if the extra cash reserve is invested in Germany:arrow_forward
- The value of an investment grows from $10,000 to $15,000 in 3 years. What is the CAGR?arrow_forwardYou invest $5,000 in a project, and it generates $1,250 annually. How long will it take to recover your investment?arrow_forwardA company pays an annual dividend of $3 per share, and the current stock price is $50. What is the dividend yield?arrow_forward
- You invest $1,000 in a stock, and after 2 years, it grows to $1,200. What is the annual return?arrow_forwardYou invest $1,000 in a stock, and after 2 years, it grows to $1,200. What is the annual return? Exparrow_forwardWells and Associates has EBIT of $ 72800. Interest costs are $ 18400, and the firm has 15600 shares of common stock outstanding. Assume a 40 % tax rate. a. Use the degree of financial leverage (DFL) formula to calculate the DFL for the firm. b. Using a set of EBIT -EPS axes, plot Wells and Associates' financing plan. c. If the firm also has 1200 shares of preferred stock paying a $ 5.75 annual dividend per share, what is the DFL? d. Plot the financing plan, including the 1200 shares of $ 5.75 preferred stock, on the axes used in part (b). e. Briefly discuss the graph of the two financing plans.arrow_forward
- You invest $5,000 for 3 years at an annual interest rate of 6%. The interest is compounded annually. Need helparrow_forwardWhat is the future value of $500 invested for 3 years at an annual compound interest rate of 4%? Explarrow_forwardYou invest $5,000 for 3 years at an annual interest rate of 6%. The interest is compounded annually.arrow_forward
- Essentials Of InvestmentsFinanceISBN:9781260013924Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.Publisher:Mcgraw-hill Education,
- Foundations Of FinanceFinanceISBN:9780134897264Author:KEOWN, Arthur J., Martin, John D., PETTY, J. WilliamPublisher:Pearson,Fundamentals of Financial Management (MindTap Cou...FinanceISBN:9781337395250Author:Eugene F. Brigham, Joel F. HoustonPublisher:Cengage LearningCorporate Finance (The Mcgraw-hill/Irwin Series i...FinanceISBN:9780077861759Author:Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan ProfessorPublisher:McGraw-Hill Education





