Bundle: Auditing: A Risk Based-approach, 11th + Mindtap Accounting, 1 Term (6 Months) Printed Access Card
11th Edition
ISBN: 9781337734455
Author: Karla M Johnstone-zehms, Audrey A. Gramling, Larry E. Rittenberg
Publisher: Cengage Learning
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Chapter 6, Problem 17RQSC
To determine
Introduction : The objective of this study is to analyze the analytical procedures in terms of the revenue of the company and how they contribute towards the evaluation as well as the prediction of the ‘Revenue’.
Analytical procedures in terms of the revenue of the company and how they contribute towards the evaluation as well as the prediction of the ‘Revenue’.
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Megan is performing an initial audit of a financial service institution. One of her first
steps is to assess the reasonableness of opening balances. How should she proceed?
a. Opening balances do not become easier to determine as experience is gained with
a client, so Megan's procedures will be the same as for a continuing client.
b. If the account balance turns over at least once an accounting period, Megan must
perform extensive audit procedures.
c. Megan can place reliance on the report submitted by the predecessor auditor, but
that decision should be made by audit area.
d. Because this is an initial audit, over auditing is not a concern; Megan must
perform all possible procedures.
During the performance of risk assessment procedures, Andoy, CPA, noted a
change in accounting principle has been effected by the client. In this case,
Andoy should plan to evaluate the change to satisfy himself that:
The newly adopted principle is a generally accepted accounting principle
The method of accounting for the effects of the change is in conformity with generally
accepted accounting principles
Management's justification for the change is reasonable
All of the answers
During the performance of risk assessment procedures, Andoy, CPA, noted a change in accounting principle has been effected by the client. In this case, Andoy should plan to evaluate the change to satisfy himself that:
a. The newly adopted principle is a generally accepted accounting principle
b. The method of accounting for the effects of the change is in conformity with generally accepted accounting principles
c. Management’s justification for the change is reasonable
d. All of the answers
Chapter 6 Solutions
Bundle: Auditing: A Risk Based-approach, 11th + Mindtap Accounting, 1 Term (6 Months) Printed Access Card
Ch. 6 - Prob. 1CYBKCh. 6 - Prob. 2CYBKCh. 6 - Prob. 3CYBKCh. 6 - Which of the following statements is true...Ch. 6 - Prob. 5CYBKCh. 6 - Prob. 6CYBKCh. 6 - Prob. 7CYBKCh. 6 - Prob. 8CYBKCh. 6 - Prob. 9CYBKCh. 6 - Prob. 10CYBK
Ch. 6 - Prob. 11CYBKCh. 6 - Prob. 12CYBKCh. 6 - Prob. 13CYBKCh. 6 - Prob. 14CYBKCh. 6 - Prob. 15CYBKCh. 6 - Prob. 16CYBKCh. 6 - Prob. 17CYBKCh. 6 - Prob. 18CYBKCh. 6 - Prob. 19CYBKCh. 6 - Prob. 20CYBKCh. 6 - Prob. 1RQSCCh. 6 - Prob. 2RQSCCh. 6 - Prob. 3RQSCCh. 6 - Prob. 4RQSCCh. 6 - Refer to Exhibit 6.2 and describe the differences...Ch. 6 - Prob. 6RQSCCh. 6 - Prob. 7RQSCCh. 6 - Prob. 8RQSCCh. 6 - Prob. 10RQSCCh. 6 - Prob. 11RQSCCh. 6 - Prob. 12RQSCCh. 6 - Prob. 13RQSCCh. 6 - Prob. 14RQSCCh. 6 - Prob. 15RQSCCh. 6 - Indicate how the auditor could use substantive...Ch. 6 - Prob. 17RQSCCh. 6 - Prob. 18RQSCCh. 6 - Prob. 19RQSCCh. 6 - Prob. 20RQSCCh. 6 - Prob. 21RQSCCh. 6 - Prob. 22RQSCCh. 6 - Prob. 23RQSCCh. 6 - Prob. 24RQSCCh. 6 - Prob. 25RQSCCh. 6 - Prob. 26RQSCCh. 6 - Prob. 27RQSCCh. 6 - Prob. 28RQSCCh. 6 - Prob. 29FFCh. 6 - Prob. 30FFCh. 6 - Prob. 31FFCh. 6 - Prob. 32FFCh. 6 - Prob. 33FFCh. 6 - MINISCRIBE (LO 1, 2) As reported in the Wall...
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- For each of the following brief scenarios, assume that you are reporting on a client’s financial statements. Select the type(s) of opinion (per below) possible for the scenario. In addition: Unless stated otherwise, assume the matter involved is material. If the problem doesn’t tell you whether a misstatement pervasively misstates the financial statements or doesn’t list a characteristic that indicates pervasiveness, two reports may be possible (i.e., replies 6 to 9). Do not read more into the circumstances than what is presented. Do not consider an auditor discretionary circumstance for modification of the audit report unless the situation explicitly suggests that the auditor wishes to emphasize a particular matter. * Note that this simulation has more parts than one would expect in a particular CPA exam simulation. We present it to provide examples of many types of reporting situations in one problem. Types of opinion may be used once, more than once, or not at all. 1. A…arrow_forwardAn auditor is skeptical about the assertion on the salary expenses. He collected information on the number of employees, categories of employees, their pay scales to estimate the amount of salary expenses. In this case the auditor is considering: O a. Relationship between financial and non- financial information O b. Anticipated results of the entity O c. Comparable information from previous period o d. Similar industry informationarrow_forwardAn important task ¡n the audit of the revenue cycle is determining whether a client has appropriately recognized revenue. a. What is the five-step process that companies should use in recognizing revenue? Why might the auditor need to do additional research and consider additional criteria on revenue recognition? b. The following are situations in which the auditor will make decisions about the amount of revenue to be recognized. For each of the following scenarios, labeled (1) through (6): . 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