Audit procedure is part of internal control 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. An analytical procedure is a part of audit procedure that evaluates the financial statement by comparing the financial data with the non-financial data. To describe: Reasons for auditors to generally follow the substantive strategy when audit the long term debt and capital account.

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Answer 1

Question

Chapter 15, Problem 15.1RQ

To determine

Concept Introduction:

Audit procedure is part of internal control 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. An analytical procedure is a part of audit procedure that evaluates the financial statement by comparing the financial data with the non-financial data.

To describe:Reasons for auditors to generally follow the substantive strategy when audit the long term debt and capital account.

Expert Solution & Answer

Explanation of Solution

A substantive strategy helps to identify the evidence related to a particular transaction, or it helps to collect the reasonable evidence for a specific assertion. While auditing the long term debt and capital account, the auditor follows the substantive strategy, because it is more efficient to use and provide an appropriate result.
The reliance strategy describes when the auditor depends on the test of control to perform the audit, and the auditor should have proper knowledge of tests of controls. The auditors would follow the reliance strategy when the organization continuously involved in the financing activities and performs tests of controls.

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Chee Chew's portfolio has a beta of 1.27 and earned a return of 13.6% during the year just ended. The risk-free rate is currently 4.6%. The return on the market portfolio during the year just ended was 10.5%. a. Calculate Jensen's measure (Jensen's alpha) for Chee's portfolio for the year just ended. b. Compare the performance of Chee's portfolio found in part a to that of Carri Uhl's portfolio, which has a Jensen's measure of -0.25. Which portfolio performed better? Explain. c. Use your findings in part a to discuss the performance of Chee's portfolio during the period just ended.

During the year just ended, Anna Schultz's portfolio, which has a beta of 0.91, earned a return of 8.1%. The risk-free rate is currently 4.1%, and the return on the market portfolio during the year just ended was 9.4%. a. Calculate Treynor's measure for Anna's portfolio for the year just ended. b. Compare the performance of Anna's portfolio found in part a to that of Stacey Quant's portfolio, which has a Treynor's measure of 1.39%. Which portfolio performed better? Explain. c. Calculate Treynor's measure for the market portfolio for the year just ended. d. Use your findings in parts a and c to discuss the performance of Anna's portfolio relative to the market during the year just ended.

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Answer 2

Question

Chapter 15, Problem 15.1RQ

To determine

Concept Introduction:

Audit procedure is part of internal control 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. An analytical procedure is a part of audit procedure that evaluates the financial statement by comparing the financial data with the non-financial data.

To describe:Reasons for auditors to generally follow the substantive strategy when audit the long term debt and capital account.

Expert Solution & Answer

Explanation of Solution

A substantive strategy helps to identify the evidence related to a particular transaction, or it helps to collect the reasonable evidence for a specific assertion. While auditing the long term debt and capital account, the auditor follows the substantive strategy, because it is more efficient to use and provide an appropriate result.
The reliance strategy describes when the auditor depends on the test of control to perform the audit, and the auditor should have proper knowledge of tests of controls. The auditors would follow the reliance strategy when the organization continuously involved in the financing activities and performs tests of controls.

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Answer 3

Question

Chapter 15, Problem 15.1RQ

To determine

Concept Introduction:

Audit procedure is part of internal control 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. An analytical procedure is a part of audit procedure that evaluates the financial statement by comparing the financial data with the non-financial data.

To describe:Reasons for auditors to generally follow the substantive strategy when audit the long term debt and capital account.

Expert Solution & Answer

Explanation of Solution

A substantive strategy helps to identify the evidence related to a particular transaction, or it helps to collect the reasonable evidence for a specific assertion. While auditing the long term debt and capital account, the auditor follows the substantive strategy, because it is more efficient to use and provide an appropriate result.
The reliance strategy describes when the auditor depends on the test of control to perform the audit, and the auditor should have proper knowledge of tests of controls. The auditors would follow the reliance strategy when the organization continuously involved in the financing activities and performs tests of controls.

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Answer 4

Question

Chapter 15, Problem 15.1RQ

To determine

Concept Introduction:

Audit procedure is part of internal control 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. An analytical procedure is a part of audit procedure that evaluates the financial statement by comparing the financial data with the non-financial data.

To describe:Reasons for auditors to generally follow the substantive strategy when audit the long term debt and capital account.

Expert Solution & Answer

Explanation of Solution

A substantive strategy helps to identify the evidence related to a particular transaction, or it helps to collect the reasonable evidence for a specific assertion. While auditing the long term debt and capital account, the auditor follows the substantive strategy, because it is more efficient to use and provide an appropriate result.
The reliance strategy describes when the auditor depends on the test of control to perform the audit, and the auditor should have proper knowledge of tests of controls. The auditors would follow the reliance strategy when the organization continuously involved in the financing activities and performs tests of controls.

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Answer 5

Chapter 15, Problem 15.1RQ

To determine

Concept Introduction:

Audit procedure is part of internal control 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. An analytical procedure is a part of audit procedure that evaluates the financial statement by comparing the financial data with the non-financial data.

To describe:Reasons for auditors to generally follow the substantive strategy when audit the long term debt and capital account.

Expert Solution & Answer

Explanation of Solution

A substantive strategy helps to identify the evidence related to a particular transaction, or it helps to collect the reasonable evidence for a specific assertion. While auditing the long term debt and capital account, the auditor follows the substantive strategy, because it is more efficient to use and provide an appropriate result.
The reliance strategy describes when the auditor depends on the test of control to perform the audit, and the auditor should have proper knowledge of tests of controls. The auditors would follow the reliance strategy when the organization continuously involved in the financing activities and performs tests of controls.

Answer 6

Chapter 15, Problem 15.1RQ

To determine

Concept Introduction:

Audit procedure is part of internal control 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. An analytical procedure is a part of audit procedure that evaluates the financial statement by comparing the financial data with the non-financial data.

To describe:Reasons for auditors to generally follow the substantive strategy when audit the long term debt and capital account.

Expert Solution & Answer

Explanation of Solution

A substantive strategy helps to identify the evidence related to a particular transaction, or it helps to collect the reasonable evidence for a specific assertion. While auditing the long term debt and capital account, the auditor follows the substantive strategy, because it is more efficient to use and provide an appropriate result.
The reliance strategy describes when the auditor depends on the test of control to perform the audit, and the auditor should have proper knowledge of tests of controls. The auditors would follow the reliance strategy when the organization continuously involved in the financing activities and performs tests of controls.

Answer 7

Chapter 15, Problem 15.1RQ

To determine

Concept Introduction:

Audit procedure is part of internal control 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. An analytical procedure is a part of audit procedure that evaluates the financial statement by comparing the financial data with the non-financial data.

To describe:Reasons for auditors to generally follow the substantive strategy when audit the long term debt and capital account.

Answer 8

Expert Solution & Answer

Explanation of Solution

A substantive strategy helps to identify the evidence related to a particular transaction, or it helps to collect the reasonable evidence for a specific assertion. While auditing the long term debt and capital account, the auditor follows the substantive strategy, because it is more efficient to use and provide an appropriate result.
The reliance strategy describes when the auditor depends on the test of control to perform the audit, and the auditor should have proper knowledge of tests of controls. The auditors would follow the reliance strategy when the organization continuously involved in the financing activities and performs tests of controls.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Ch. 15 - Prob. 15.1RQ Ch. 15 - Prob. 15.2RQ Ch. 15 - Prob. 15.3RQ Ch. 15 - Prob. 15.4RQ Ch. 15 - Prob. 15.5RQ Ch. 15 - Prob. 15.6RQ Ch. 15 - Prob. 15.7RQ Ch. 15 - Prob. 15.8RQ Ch. 15 - Prob. 15.9RQ Ch. 15 - Prob. 15.10RQ

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