GEN COMBO LL PRINCIPLES OF AUDITING & OTHER ASSURANCE SERVICES; CONNECT AC
GEN COMBO LL PRINCIPLES OF AUDITING & OTHER ASSURANCE SERVICES; CONNECT AC
21st Edition
ISBN: 9781260427202
Author: Ray Whittington, Kurt Pany
Publisher: McGraw-Hill Education
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Chapter 5, Problem 53P

a.

To determine

Identify the accounts that may appear to represent significant variations from what one might expect.

b.

To determine

Identify the ratios that may appear to represent significant variations from what one might expect.

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1. Using the information above, complete the calculation of accounting ratios andpercentages and comment briefly on the performance of the company for the twoyears. 2. By reference to requirement 1, identify the areas that are subject to increased auditrisk and describe the further audit work you would perform in response to those risks.
The data below is the sales of MGM Co. The accountant of the company hasprovided you with the following data as well as his computed balance ofP2,350,000 as the gross sales of the company. As the external auditor of thefirm, you are tasked to compute whether the gross sales presented to you isunderstated or overstated as compared to your audited amount. How much isthe understatement or overstatement? (Place 0 if there is no misstatement. If theamount represents an overstatement, place a - sign before the amount. No needto provide description.)
The data is the sales of CoCo Co. The accountant of the company has provided you with the following data as well as his computed balance of P2,350,000 as the gross sales of the company. As the external auditor of the firm, you are tasked to compute whether the gross sales presented to you is understated or overstated as compared to your audited amount. How much is the understatement or overstatement?

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GEN COMBO LL PRINCIPLES OF AUDITING & OTHER ASSURANCE SERVICES; CONNECT AC

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