The client restricted the auditor from observing the property ,plant and equipment .The property, plant and...
The client restricted the auditor from observing the property ,plant and equipment .The property, plant and equipment is a material part of the assets making up 25% of total assets.Indicate the type of opinion that should be expressed in each of the following situations, providing reasons for your choice .
Homework Answers
Type of opinion formed by the auditor is Disclaimer Audit Opinion.
Disclaimer audit opinion is given by the auditor when auditor is not able to obtain sufficient and appropriate evidences due to any reason and hence, not able to perform audit properly.
In the given question auditor is not able to observe the assets due to the interference of the client. Hence the opinion shall be disclaimer opinion.
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The client restricted the auditor from observing the property
,plant and equipment .The property, plant and...
The auditor was unable to obtain confirmations from four of the client’s major customers that were...
The auditor was unable to obtain confirmations from four of the client’s major customers that were included in the sample .The auditor was able to satisfy himself about the balances of these accounts using other audit procedures. Indicate the type of opinion that should be expressed in each of the following situations, providing reasons for your choice .
A client has been using the previous Accounting standards in preparing its accounts .This has lead...
A client has been using the previous Accounting standards in preparing its accounts .This has lead to material misstatements in a number of assets as well as a substantial misstatement of profit .Due to its wanting to just finalise its accounts it is not prepared to amend its financial statements although it can calculate the extent of the misstatements. which is disallowed under the Australian Accounting Standards.ndicate the type of opinion that should be expressed in each of the following...
QUESTION 2 (24 MARKS) Indicate the type of opinion that should be expressed in each of...
QUESTION 2 (24 MARKS) Indicate the type of opinion that should be expressed in each of the following situations, providing reasons for your choice (a)You have been asked to do the audit for a new client this financial year.While you are satisfied that there appears to be no material misstatements for the information during the current financial year the client will not provide any information about the opening balances of accounts at the start of the financial year (b) You...
Auditing Property, Plant, and Equipment A common error the auditor may find during the audit of p...
Auditing Property, Plant, and Equipment A common error the auditor may find during the audit of property, plant, and equipment is that the client neglected to make a journal entry when disposing of an asset that has no value. When no consideration is received (for example, when the asset is donated or tossed out), it is easy to not record an entry and keep the asset on the books. Clients often make an error by "forgetting" to record a disposal...
a. Property, plant, and equipment are sold for $723,900. Record the sale of property, plant and...
a. Property, plant, and equipment are sold for
$723,900.
Record the sale of property, plant and equipment.
b. Property, plant, and equipment are sold for
$141,300.
Record the sale of property, plant and equipment.
Trish Craig and Ted Smith have a bio-energy and consulting business and share profit and losses in a 3:1 ratio. They decide to liquidate their partnership on December 31, 2020, when the balance sheet shows the following: Craig and Smith Consulting Balance Sheet December 31, 2020...
The following information relating to property plant and equipment was extracted from
QUESTION THREE [20]
The following information relating to property plant and equipment
was extracted from
the accounting records of Sandile’s Supermarket:
1. Balances at 28 February 2018:
- Equipment at cost R 56 000
- Accumulated depreciation: equipment R 10 860
- Vehicles at cost R560 000
- Accumulated depreciation: vehicles R285 360
2. The following transactions in respect of property, plant and
equipment took place
during the current financial year:
2.1 An old vehicle was sold on 31 August...
Each statement describes a responsibility of an auditor. Select from the option list provided the type...
Each statement describes a responsibility of an auditor. Select from the option list provided the type of responsibility each imposes on the auditor. Each choice may be used once, more than once, or not at all. Statement Type of responsibility 1. The auditor should document the evidence obtained in the audit. 2. The auditor must be independent. 3. The auditor should test management's assertions relating to the financial statements. 4. The auditor may make suggestions about the form or content...
1. As a part of auditing depreciation expense the auditor tests whether the client has followed...
1. As a part of auditing depreciation expense the auditor tests whether the client has followed a consistent policy and the calculations are correct. Which of the following audit objectives is the auditor addressing? A) Cut-off B) Occurrence C) Completeness D) Accuracy 2. The auditor used positive confirmations to test accounts receivable, but several of the confirmations were not returned. Which of the following auditing procedures would the auditor perform on the non-responses? A) Inspect shipping documents to verify that...
help me asap 534 Chapter 10 Acquisition and Disposition of Property, Plant,, and Equipment Purchase Cash...
help me asap
534 Chapter 10 Acquisition and Disposition of Property, Plant,, and Equipment Purchase Cash paid for equipment, including sales tax of $5,000 Freight and insurance cost while in transit Cost of moving equipment into place at factory Wage cost for technicians to test equipment Insurance premium paid during first year of operation on this equipment Special plumbing fixtures required for new equipment Repair cost incurred in first year of operations related to this equipment $105,000 2,000 3,100 4,000...
A manager is explaining to a staff auditor how various situations might affect the audit opinion....
A manager is explaining to a staff auditor how various situations might affect the audit opinion. For each of the following scenarios, identify the appropriate reporting option by matching the scenario with the opinion type from the list provided. Assume that any financial statement effect is material, unless otherwise noted and that US auditing standards are followed. -A.B.C.D. The scope of the auditor’s examination is affected by conditions that preclude the application of a necessary auditing procedure it IS very...
QUESTION 2 (24 MARKS) Indicate the type of opinion that should be expressed in each of the following situations, providing reasons for your choice (a)You have been asked to do the audit for a new client this financial year.While you are satisfied that there appears to be no material misstatements for the information during the current financial year the client will not provide any information about the opening balances of accounts at the start of the financial year (b) You...
a. Property, plant, and equipment are sold for
$723,900.
Record the sale of property, plant and equipment.
b. Property, plant, and equipment are sold for
$141,300.
Record the sale of property, plant and equipment.
Trish Craig and Ted Smith have a bio-energy and consulting business and share profit and losses in a 3:1 ratio. They decide to liquidate their partnership on December 31, 2020, when the balance sheet shows the following: Craig and Smith Consulting Balance Sheet December 31, 2020...
QUESTION THREE [20]
The following information relating to property plant and equipment
was extracted from
the accounting records of Sandile’s Supermarket:
1. Balances at 28 February 2018:
- Equipment at cost R 56 000
- Accumulated depreciation: equipment R 10 860
- Vehicles at cost R560 000
- Accumulated depreciation: vehicles R285 360
2. The following transactions in respect of property, plant and
equipment took place
during the current financial year:
2.1 An old vehicle was sold on 31 August...
Each statement describes a responsibility of an auditor. Select from the option list provided the type of responsibility each imposes on the auditor. Each choice may be used once, more than once, or not at all. Statement Type of responsibility 1. The auditor should document the evidence obtained in the audit. 2. The auditor must be independent. 3. The auditor should test management's assertions relating to the financial statements. 4. The auditor may make suggestions about the form or content...
help me asap
534 Chapter 10 Acquisition and Disposition of Property, Plant,, and Equipment Purchase Cash paid for equipment, including sales tax of $5,000 Freight and insurance cost while in transit Cost of moving equipment into place at factory Wage cost for technicians to test equipment Insurance premium paid during first year of operation on this equipment Special plumbing fixtures required for new equipment Repair cost incurred in first year of operations related to this equipment $105,000 2,000 3,100 4,000...
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