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. To identify: The audit procedure that should be used by independent auditor that change when an entity utilizes a statistical sampling to determine inventory value.

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Answer 1

Question

Chapter 13, Problem 13.29P

a.

To determine

Concept Introduction:

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.

To identify:The audit procedure that should be used by independent auditor that change when an entity utilizes a statistical sampling to determine inventory value.

b.

To determine

Concept Introduction:

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.

10 normal audit procedures that should be performed to verify physical quantities.

Normal audit procedure to verify physical quantities when an entity conductsperiod physical counts of all, or part, of its inventory:

The Auditor should recheck the current inventory count procedure and ensure whether they are approved.

The auditor should oversight the physical count.

The Auditor should make test count if it is necessary.

The auditor should test a sample from the recorded inventory.

The Auditor should select the sample items from the compilation engagement and record them into count data.

The auditor needs to ensure the numbers of purchase and sales cutoff.

The auditor should recheck the treatment provided to the merchandise.

Auditor should assure about the merchandise available in the warehouse.

Auditor should perform the analytical procedure to evaluate the inventory.

Auditor should ensure whether all inventory recorded correctly and items are classified.

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Students have asked these similar questions

Consider the following cash flows on two mutually exclusive projects for the Bahamas Recreation Corporation (BRC). Both projects require an annual return of 14 percent. New Submarine Deepwater Fishing Year Ride 0 -$875,000 1 330,000 2 480,000 3 440,000 -$1,650,000 890,000 730,000 590,000 a-1. Compute the IRR for both projects. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Deepwater Fishing Submarine Ride 19.16 % 17.50% a-2. Based on the IRR, which project should you choose? Deepwater Fishing Submarine Ride b-1. Calculate the incremental IRR for the cash flows. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Incremental IRR 14.96 % b-2. Based on the incremental IRR, which project should you choose? Submarine Ride Deepwater Fishing

What is the possibility that cases are not readily bounded but may have blurry definitions? How to address Robert Yin statement and how to resolve the ‘not readily bound’ case? Please help explain.

An investment that is worth $44,600 is expected to pay you $212,205 in X years and has an expected return of 18.05 percent per year. What is X?

Answer 2

Question

Chapter 13, Problem 13.29P

a.

To determine

Concept Introduction:

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.

To identify:The audit procedure that should be used by independent auditor that change when an entity utilizes a statistical sampling to determine inventory value.

b.

To determine

Concept Introduction:

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.

10 normal audit procedures that should be performed to verify physical quantities.

Normal audit procedure to verify physical quantities when an entity conductsperiod physical counts of all, or part, of its inventory:

The Auditor should recheck the current inventory count procedure and ensure whether they are approved.

The auditor should oversight the physical count.

The Auditor should make test count if it is necessary.

The auditor should test a sample from the recorded inventory.

The Auditor should select the sample items from the compilation engagement and record them into count data.

The auditor needs to ensure the numbers of purchase and sales cutoff.

The auditor should recheck the treatment provided to the merchandise.

Auditor should assure about the merchandise available in the warehouse.

Auditor should perform the analytical procedure to evaluate the inventory.

Auditor should ensure whether all inventory recorded correctly and items are classified.

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Answer 3

Question

Chapter 13, Problem 13.29P

a.

To determine

Concept Introduction:

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.

To identify:The audit procedure that should be used by independent auditor that change when an entity utilizes a statistical sampling to determine inventory value.

b.

To determine

Concept Introduction:

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.

10 normal audit procedures that should be performed to verify physical quantities.

Normal audit procedure to verify physical quantities when an entity conductsperiod physical counts of all, or part, of its inventory:

The Auditor should recheck the current inventory count procedure and ensure whether they are approved.

The auditor should oversight the physical count.

The Auditor should make test count if it is necessary.

The auditor should test a sample from the recorded inventory.

The Auditor should select the sample items from the compilation engagement and record them into count data.

The auditor needs to ensure the numbers of purchase and sales cutoff.

The auditor should recheck the treatment provided to the merchandise.

Auditor should assure about the merchandise available in the warehouse.

Auditor should perform the analytical procedure to evaluate the inventory.

Auditor should ensure whether all inventory recorded correctly and items are classified.

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Answer 4

Question

Chapter 13, Problem 13.29P

a.

To determine

Concept Introduction:

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.

To identify:The audit procedure that should be used by independent auditor that change when an entity utilizes a statistical sampling to determine inventory value.

b.

To determine

Concept Introduction:

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.

10 normal audit procedures that should be performed to verify physical quantities.

Normal audit procedure to verify physical quantities when an entity conductsperiod physical counts of all, or part, of its inventory:

The Auditor should recheck the current inventory count procedure and ensure whether they are approved.

The auditor should oversight the physical count.

The Auditor should make test count if it is necessary.

The auditor should test a sample from the recorded inventory.

The Auditor should select the sample items from the compilation engagement and record them into count data.

The auditor needs to ensure the numbers of purchase and sales cutoff.

The auditor should recheck the treatment provided to the merchandise.

Auditor should assure about the merchandise available in the warehouse.

Auditor should perform the analytical procedure to evaluate the inventory.

Auditor should ensure whether all inventory recorded correctly and items are classified.

Expert Solution & Answer

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Answer 5

Chapter 13, Problem 13.29P

a.

To determine

Concept Introduction:

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.

To identify:The audit procedure that should be used by independent auditor that change when an entity utilizes a statistical sampling to determine inventory value.

b.

To determine

Concept Introduction:

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.

10 normal audit procedures that should be performed to verify physical quantities.

Normal audit procedure to verify physical quantities when an entity conductsperiod physical counts of all, or part, of its inventory:

The Auditor should recheck the current inventory count procedure and ensure whether they are approved.

The auditor should oversight the physical count.

The Auditor should make test count if it is necessary.

The auditor should test a sample from the recorded inventory.

The Auditor should select the sample items from the compilation engagement and record them into count data.

The auditor needs to ensure the numbers of purchase and sales cutoff.

The auditor should recheck the treatment provided to the merchandise.

Auditor should assure about the merchandise available in the warehouse.

Auditor should perform the analytical procedure to evaluate the inventory.

Auditor should ensure whether all inventory recorded correctly and items are classified.

Answer 6

Chapter 13, Problem 13.29P

a.

To determine

Concept Introduction:

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.

To identify:The audit procedure that should be used by independent auditor that change when an entity utilizes a statistical sampling to determine inventory value.

Answer 7

Chapter 13, Problem 13.29P

a.

To determine

Concept Introduction:

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.

To identify:The audit procedure that should be used by independent auditor that change when an entity utilizes a statistical sampling to determine inventory value.

Answer 8

b.

To determine

Concept Introduction:

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.

10 normal audit procedures that should be performed to verify physical quantities.

Normal audit procedure to verify physical quantities when an entity conductsperiod physical counts of all, or part, of its inventory:

The Auditor should recheck the current inventory count procedure and ensure whether they are approved.

The auditor should oversight the physical count.

The Auditor should make test count if it is necessary.

The auditor should test a sample from the recorded inventory.

The Auditor should select the sample items from the compilation engagement and record them into count data.

The auditor needs to ensure the numbers of purchase and sales cutoff.

The auditor should recheck the treatment provided to the merchandise.

Auditor should assure about the merchandise available in the warehouse.

Auditor should perform the analytical procedure to evaluate the inventory.

Auditor should ensure whether all inventory recorded correctly and items are classified.

Answer 9

b.

To determine

Concept Introduction:

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.

10 normal audit procedures that should be performed to verify physical quantities.

Normal audit procedure to verify physical quantities when an entity conductsperiod physical counts of all, or part, of its inventory:

The Auditor should recheck the current inventory count procedure and ensure whether they are approved.

The auditor should oversight the physical count.

The Auditor should make test count if it is necessary.

The auditor should test a sample from the recorded inventory.

The Auditor should select the sample items from the compilation engagement and record them into count data.

The auditor needs to ensure the numbers of purchase and sales cutoff.

The auditor should recheck the treatment provided to the merchandise.

Auditor should assure about the merchandise available in the warehouse.

Auditor should perform the analytical procedure to evaluate the inventory.

Auditor should ensure whether all inventory recorded correctly and items are classified.

Answer 10

Expert Solution & Answer

Answer 11

Expert Solution & Answer

Answer 12

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Answer 13

Ch. 13 - Prob. 13.1RQ Ch. 13 - Prob. 13.2RQ Ch. 13 - Prob. 13.3RQ Ch. 13 - Prob. 13.4RQ Ch. 13 - Prob. 13.5RQ Ch. 13 - Prob. 13.6RQ Ch. 13 - Prob. 13.7RQ Ch. 13 - Prob. 13.8RQ Ch. 13 - Prob. 13.9RQ Ch. 13 - Prob. 13.10RQ

Solution Summary: The author explains the audit procedure used by independent auditors to determine the nature of financial information provided by customers and all kinds of risks that occur in the financial statements.

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Chapter 13 Solutions