EBK AUDITING & ASSURANCE SERVICES: A SY
11th Edition
ISBN: 9781260687668
Author: Jr
Publisher: MCGRAW-HILL LEARNING SOLN.(CC)
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Question
Chapter 15, Problem 15.19MCQ
To determine
Introduction:
Analytical
A comparison of current year revenues and expenses with past year revenue and expenses is a analytical audit procedure which is aimed to find out changes in these figures year on year, a higher percentage of change than expected change would indicate that the general relationship which was expected is not followed and therefore, further investigation is required to find out the cause.
To select: The correct option.
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Students have asked these similar questions
A tax return client was audited for a prior year return and assessed a tax deficiency because a material deduction was disallowed. Nevertheless, the client insists on taking the very same kind of deduction on this year’s return...
(a) A CPA absolutely may not prepare or sign the client’s return for this year un-less it conforms to the audit result for the prior year.
(b) A CPA may prepare and sign the client’s return for this year claiming a de-duction that previously was disallowed if the CPA determines as a matter of in-dependent professional judgment that the deduction is proper.
(c) A CPA may prepare and sign the client’s return for this year claiming a de-duction that previously was disallowed if the CPA receives a formal tax opinion from a law firm or from an unaffiliated CPA affirming that it is more likely than not that the deduction would be sustained on its merits if litigated.
Which of the following statements is not correct?
Multiple Choice
Corporations must estimate and prepay their income taxes through quarterly tax deposits.
At the end of the year, when the worksheet is prepared, the Income Tax Expense account is adjusted only if the corporation owes additional taxes.
Income Tax Expense may be shown as an operating expense on a corporation's income statement.
The Income Tax Expense account may be either debited or credited in the adjusting journal entry for income tax at year-end.
For a publicly owned company, indicate which of the fol-lowing accounting activities are likely to occur at or shortly
after year-end. (More than one answer may be correct.)a. Preparation of income tax returns.b. Adjusting and closing of the accounts.c. Drafting of disclosures that accompany the fi nancialstatements.d. An audit of the fi nancial statements by an independentCPA fi rm.
Chapter 15 Solutions
EBK AUDITING & ASSURANCE SERVICES: A SY
Ch. 15 - Prob. 15.1RQCh. 15 - Prob. 15.2RQCh. 15 - Prob. 15.3RQCh. 15 - Prob. 15.4RQCh. 15 - Prob. 15.5RQCh. 15 - Prob. 15.6RQCh. 15 - Prob. 15.7RQCh. 15 - Prob. 15.8RQCh. 15 - Prob. 15.9RQCh. 15 - Prob. 15.10RQ
Ch. 15 - Prob. 15.11MCQCh. 15 - Prob. 15.12MCQCh. 15 - Prob. 15.13MCQCh. 15 - Prob. 15.14MCQCh. 15 - Prob. 15.15MCQCh. 15 - Prob. 15.16MCQCh. 15 - Prob. 15.17MCQCh. 15 - Prob. 15.18MCQCh. 15 - Prob. 15.19MCQCh. 15 - Prob. 15.20MCQCh. 15 - Prob. 15.21PCh. 15 - Prob. 15.22PCh. 15 - Prob. 15.23PCh. 15 - Prob. 15.24P
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