Principles Of Auditing & Other Assurance Services
21st Edition
ISBN: 9781259916984
Author: WHITTINGTON, Ray, Pany, Kurt
Publisher: Mcgraw-hill Education,
expand_more
expand_more
format_list_bulleted
Question
Chapter 6, Problem 35QRA
a.
To determine
Locate the software company using EDGAR.
b.
To determine
Describe the “Management’s Discussion and Analysis” section from form 10-K of the company.
c.
To determine
Describe four significant business risks as given in the company’s “Management’s Discussion and Analysis” section.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
What is the relationship between Accounting and an Accountinginformation system?
• What has happened to the relationship over the years?
• What is accounting information?
• Name 4 uses of Accounting Information?
• Use an example to illustrate the difference between data,information, and intelligence?
• Discuss security concerns related to shadow data and businessintelligence technologies.
• Discuss the role of accounting professionals in thedevelopment of shadow data.
System Documentation
• What is system documentation?
• Why is it important to know system documentation?
• Explain the 4 elements that makes up the Data Flow Diagrams?
• Give an example of who or when one of these documents may berequired
• What are Flowcharts?
• List an example of an Input/output, processing and storage
Symbols
• Differentiate between different types of Flowchart?
• If you were a new factory employee on your first day at a vastfactory, indicate which level Flowcharts would be required and
•…
Match the following terms with their definitions. (Use each definition only once.)
A (Consider the following definitions.)
Term
Definition
More Info
1.
Internal control
2.
Control procedures
3.
Firewalls
a. Two or more people working together to overcome internal controls.
4.
Encryption
b. Part of internal control that ensures resources are not wasted.
5.
Environment
c. Requires companies to review internal control and take responsibility for the accuracy and completeness of their financial reports.
6.
Information system
d. Should be prenumbered to prevent theft and inefficiency.
7.
Separation of duties
e. Limits access to a local network.
8.
Collusion
f. Example: The person who opens the bank statement should not also be the person who is reconciling cash.
9.
Documents
g. Identification of uncertainties that may arise due to a company's products, services or operations.
10. Audits
h. Examination of a company's financial statements and accounting system by a trained accounting…
describe how the role of governance structures, internal controls and compliance policies help in the prevention of financial fraud in a company.
NB: site references
Chapter 6 Solutions
Principles Of Auditing & Other Assurance Services
Ch. 6 - Prob. 1RQCh. 6 - Prob. 2RQCh. 6 - Prob. 3RQCh. 6 - Discuss what is meant by the phrase shopping for...Ch. 6 - Prob. 5RQCh. 6 - Prob. 6RQCh. 6 - Prob. 7RQCh. 6 - Prob. 8RQCh. 6 - Prob. 9RQCh. 6 - Prob. 10RQ
Ch. 6 - Prob. 11RQCh. 6 - Prob. 12RQCh. 6 - Prob. 13RQCh. 6 - Prob. 14RQCh. 6 - Prob. 15RQCh. 6 - What is meant by making a proper year-end cutoff?...Ch. 6 - Prob. 17RQCh. 6 - Prob. 18RQCh. 6 - Prob. 19RQCh. 6 - Prob. 20RQCh. 6 - Auditing standards require the auditors to have a...Ch. 6 - Prob. 22RQCh. 6 - Prob. 23RQCh. 6 - Prob. 24QRACh. 6 - Prob. 25QRACh. 6 - Prob. 26QRACh. 6 - Prob. 27QRACh. 6 - Prob. 28QRACh. 6 - Prob. 29QRACh. 6 - Prob. 30QRACh. 6 - Prob. 31QRACh. 6 - Prob. 32QRACh. 6 - Prob. 33QRACh. 6 - Prob. 34QRACh. 6 - Prob. 35QRACh. 6 - Prob. 36QRACh. 6 - Prob. 37QRACh. 6 - Prob. 38AOQCh. 6 - Prob. 38BOQCh. 6 - Prob. 38COQCh. 6 - Prob. 38DOQCh. 6 - Prob. 38EOQCh. 6 - Prob. 38FOQCh. 6 - Prob. 38GOQCh. 6 - Prob. 38HOQCh. 6 - Prob. 38IOQCh. 6 - Prob. 38JOQCh. 6 - Prob. 38KOQCh. 6 - Prob. 38LOQCh. 6 - Prob. 39OQCh. 6 - Prob. 40OQCh. 6 - Prob. 41OQCh. 6 - Prob. 42AOQCh. 6 - Prob. 42BOQCh. 6 - Prob. 42COQCh. 6 - Tracing from source documents to journals most...Ch. 6 - Vouching from journals (or ledgers) to source...Ch. 6 - For each definition (or portion of a definition)...Ch. 6 - Prob. 44PCh. 6 - Prob. 45PCh. 6 - Tammy Potter, a new partner with the regional CPA...
Knowledge Booster
Similar questions
- 1arrow_forwardWhat is the relationship between Accounting and an Accountinginformation system? ) • What has happened to the relationship over the years? • What is accounting information? • Name 4 uses of Accounting Information? • Use an example to illustrate the difference between data,information, and intelligence? • Discuss security concerns related to shadow data and businessintelligence technologies. • Discuss the role of accounting professionals in thedevelopment of shadow data. • What is system documentation? • Why is it important to know system documentation? • Explain the 4 elements that makes up the Data Flow Diagrams? • Give an example of who or when one of these documents may berequired • What are Flowcharts? • List an example of an Input/output, processing and storage Symbols • Differentiate between different types of Flowchart? • If you were a new factory employee on your first day at a vastfactory, indicate which level Flowcharts would be required and • If you were a new…arrow_forwardThe General Ledger/Financial Reporting System as a vital part of the Accounting Information Systems, assists management of listed US companies to meet their reporting obligations to the Securities and Exchange Commission(SEC). The SEC now requires US companies to submit their financial reports using the eXtensible Business Reporting Language (XBRL) format. Required: Discuss the primary advantage of XBRL over traditional HTML as a means of online reporting of financial information to users.arrow_forward
- From the SEC’s websiteLinks to an external site., access any company’s recent 10-K (within the last two years) and review the Management & Discussion Analysis (MD&A) and the Auditor’s Report (Report of Independent Registered Public Accounting Firm). Share the following: Discuss one item from the Management & Discussion Analysis (MD&A) that you found interesting. From the Auditor’s Report, share your thoughts on the information provided in the report. Do you have any concerns?arrow_forwardOverview Shah presents 23 best practices to implement and examine how the shape of regulatory data collection process may change in the future through using extensible business reporting language (XBRL). Read this article before you begin your assignment: The Road to Making Regulation More Efficient: A Case Study in the Application of Best Practices and Data Standards in Regulatory Reporting. Instructions in which you: Research an existing small to medium-sized business that does not have an established accounting information system (AIS). Make sure you clearly identify what business line, product type, and market position. Implement at least 5 of the 23 best practices in the reporting process within the organization. Provide details to either enforce existing practices or introduce them if they do not exist. You can select any practices you like. Explain the impact of the best practices you selected on the reporting process. Describe how the best practices align with the XBRL…arrow_forwardMatch each of the numbered descriptions 1 through 7 with the term or phrase it best reflects. Indicate your answer by writing the letter A through G for the term or phrase in the blank provided. A. Ethics. B. Fraud triangleC. Prevention.arrow_forward
- Visit the website of the US Securities and Exchange Commission (SEC) https://www.sec.gov/edgar/searchedgar/companysearch.html Search for the latest Form 10-K for a company you would like to analyze. Submit a short memo that A. Includes the name of the company you have chosen.B. Review the company’s end-of-period Balance Sheet to determine the following: Total assets Total liabilities Total equity C. Compare beginning and ending Assets totals and discuss the amount of change.D. Compare beginning and ending Liabilities totals and discuss the amount of change.E. Compare beginning and ending Equity totals and discuss the amount of change. Please provide a link to the company’s Form 10-K to allow accurate verification of your answers.arrow_forwardfind the websites for a list of companies and organizations related to accounting and finance. Once you have located the websites, your task is to conduct a brief analysis of their content, summarizing their key features and information. Association of Government Accountants National Association of State Auditors, Comptrollers, and Treasurersarrow_forwardPlease analyze, assess, and synthesize the Annual Report or Form 10-K or Form 20 - F (whatever they call it in that jurisdiction) of the company you choose. You can usually find it on the Company's website in Investor R. Introduction 2. Industry situation and company plans A. Management Letter B. B. Review Company's Products and Services 3. Financial Statements A. Income Statement B. Cash Flow Statement C. Balance Sheet D. Accounting Policies 4. Financial Analysis & Ratio A. Financial Analysis B. Ratio C. Market Indicator Financial Ratios 5. References 6. Complete Calcuation of Part 4 in excelLimiarrow_forward
- An employee of which of the following companies would likely serve as an internal auditor? PwC EY Coca-Cola Deloittearrow_forwardPrepare an explanatory memorandum about financial performance and record keeping requirements. The operations manager of Metharom Construction has asked you to prepare an explanatory memorandum for the accounting staff. They have requested that you include the following information: A) a description of a minimum of 5 financial records that the company must maintain B) any three factors while selecting software that could assist with finance management for small business C) list any 5 regulatory requirement for lodgement and payment of statutory obligations D) a set of policies to for Debt recovery procedures (minimum 3) E) explain how financial performance will be monitored (include a minimum of 2 key performance indicators) F) set of minimum 6 written financial procedures for Metharom which will help in financial health check for stakeholders G)This document must then be sent electronically to the Operations Manager (your assessor) as well as submitted in hard copy.arrow_forwardHow do you distinguish between Financial Reporting for GAAP, and full Disclosure. What is Management Discussion and Analysis. Access a public company annual report and analyze its MD&A section and how it helps the investors in their decision making process.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Century 21 Accounting Multicolumn JournalAccountingISBN:9781337679503Author:GilbertsonPublisher:Cengage
Financial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage Learning- Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax CollegePrinciples of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax CollegeBusiness/Professional Ethics Directors/Executives...AccountingISBN:9781337485913Author:BROOKSPublisher:Cengage
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:9781337679503
Author:Gilbertson
Publisher:Cengage
Financial Accounting: The Impact on Decision Make...
Accounting
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax College
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College
Business/Professional Ethics Directors/Executives...
Accounting
ISBN:9781337485913
Author:BROOKS
Publisher:Cengage