EBK AUDITING+ASSURANCE SERVICES
EBK AUDITING+ASSURANCE SERVICES
17th Edition
ISBN: 9780135171219
Author: ARENS
Publisher: PEARSON CO
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Chapter 7, Problem 2RQ
To determine

List four major evidence decisions that must be made on every audit.

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Primo Industries collected $107,474 from customers in 2015. Of the amount collected, $27,373 was from services performed in 2014. In addition, Primo performed services worth $41,264 in 2015, which will not be collected until 2016. Primo Industries also paid $76,280 for expenses in 2015. Of the amount paid, $29,224 was for expenses incurred on account in 2014. In addition, Primo incurred $42,536 of expenses in 2015, which will not be paid until 2016. Compute 2015 cash-basis net income.
What is the value of total assets?
Assume your organization has the following inventory changes during the year: Beginning Inventory 15 units valued at $10,000 each February purchases 13 units at $11,500 each June purchases Total Units Used 20 units at $12,000 each 42 Calculate the value of the ending inventory and the value of the inventory used (the inventory expense) for the year using both the FIFO and the LIFO method of cost-flow.
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