ACP AUDITING - RISK BASED APPROACH
ACP AUDITING - RISK BASED APPROACH
10th Edition
ISBN: 9780357195079
Author: JOHNSTONE
Publisher: CENGAGE C
bartleby

Videos

Textbook Question
Book Icon
Chapter 6, Problem 54RSCQ

Indicate how the auditor could use substantive analytical procedures in resting the following accounts:

a. Interest expense related to bonds outstanding.
b. Natural gas expense for a public utility company.
c. Supplies expense for a factory.
d. Cost of goods sold for a fast-food franchisor (e.g., Wendy’s or McDonald’s). Note that cost of goods sold tends to average about 35% of sales in fast-food franchises.
e. Salary expense for an office (region) of a professional services firm.

Blurred answer
Students have asked these similar questions
The descriptive sections of the annual report that provides insight into what the company does and the types of risks it lates is felt Select one: OA management discussion and analysis. B. the industry overview. OC. the audit opinion. D. notes to the financial statements. To best interpret the accounts receivable turnover ratio, the days in accounts receivable should be compared to the company's Select one: A sales revenue. B. credit terms. OC. inventory turnover. D. accounts receivable balance. Two companies have an identical amount of current assets and current liabilities Donald Inc. has 40% of its current assets invested in whereas Mickey Corp. has 30% of its current assets invested in inventory Which of the following statements is true? Select one: OA. Donald will have the higher quick ratio. OB. Donald will have the higher current ratio. OC. The companies are equally liquid because their current ratios are the same OD. Donald is less liquid than Mick
An auditor is required to confirm accounts receivable if the accounts receivable balances area. Older than the prior year.b. Material to the financial statements.c. Smaller than expected.d. Subject to valuation estimates.
Which of the following would not be considered an analytical procedure? a. Projecting an error rate by comparing the results of a statistical sample with the actual population characteristics. b. Developing the expected current year sales based on the sales trend of the prior five years. O c. Computing accounts receivable turnover by dividing credit sales by the average net receivables. d. Estimating payroll expense by multiplying the number of employees by the average hourly wage rate and the total hours worked.

Chapter 6 Solutions

ACP AUDITING - RISK BASED APPROACH

Knowledge Booster
Background pattern image
Accounting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
Auditing: A Risk Based-Approach (MindTap Course L...
Accounting
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Cengage Learning
Text book image
Contemporary Auditing
Accounting
ISBN:9781337650380
Author:KNAPP
Publisher:Cengage
Text book image
College Accounting, Chapters 1-27
Accounting
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:Cengage Learning,
Text book image
Auditing: A Risk Based-Approach to Conducting a Q...
Accounting
ISBN:9781305080577
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:South-Western College Pub
Text book image
Pkg Acc Infor Systems MS VISIO CD
Finance
ISBN:9781133935940
Author:Ulric J. Gelinas
Publisher:CENGAGE L
Accounting Basics Explained Through a Story; Author: Leila Gharani;https://www.youtube.com/watch?v=VYNTBWBqncU;License: Standard Youtube License