What is the best evidence to audit the following? 1- Inventory 2- Accounts Receivable 3- Depreciation...
What is the best evidence to audit the following?
1- Inventory
2- Accounts Receivable
3- Depreciation expense
4- Contingent liabilities
5- Collectibles
Homework Answers
Best evidences to audit the following;
1. Inventory - physical verification is the best evidence since it confirm the Existance of the inventory and condition of the inventory.
2. Accounts receivables - obtaining direct balance confirmations from the customers
3. Depreciation expenses - Re calculation of depreciation based on the fixed asset register
4. Contingent liability - obtaining third party expert opinion on the possibility of the amount.
5. Collectibles - physical verification of items
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What is the best evidence to audit the following?
1- Inventory
2- Accounts Receivable
3- Depreciation...
1. Auditors often follow a "cycle" approach to the gathering of evidence. Of the following accounts,...
1. Auditors often follow a "cycle" approach to the gathering of evidence. Of the following accounts, which typically would NOT be part of the sales cycle? a. Accounts receivable b. Allowance for doubtful accounts c. Inventory d. Sales returns and allowances e. None of the above 2. The assertion COMPLETENESS involves a. Overstatement. b. Ownership. c. Professional Skepticism. d. Understatement. 3. To be appropriate, evidence should be relevant and reliable. Under...
What tests can an audit perform to make sure that inventory and accounts receivable on the...
What tests can an audit perform to make sure that inventory and accounts receivable on the balance sheet is fairly stated?
Net income Depreciation Expense Change in Accounts Receivable Change in Inventory Change in Accounts Payable OPERATING...
Net income Depreciation Expense Change in Accounts Receivable Change in Inventory Change in Accounts Payable OPERATING CASH FLOWS Acquisitions of fixed assets INVESTING CASH FLOWS Change in Notes Payable Change in Long-term debt Change in Common stock FINANCING CASH FLOWS NET CHANGE IN CASH CASH AT BEGINNING OF YEAR CASH AT END OF YEAR 2019 2018 change Cash 200,000 170,000 30,000 Accounts Receivable 864,000 700,000 164,000 Inventory 2,000,000 1,400,000 600,000 ...
Assets Cash Accounts receivable Allowance for doubtful accounts Inventory Equipment Accumulated depreciation-equipment Blossom Company Balance Sheet...
Assets Cash Accounts receivable Allowance for doubtful accounts Inventory Equipment Accumulated depreciation-equipment Blossom Company Balance Sheet May 31, 2020 Liabilities and Owners' Equity $29,900 Notes payable $13,500 24,000 Accounts payable 27,500 (1,400) Salaries and wages payable 3,900 34,100 A. Jamison, capital 32.500 20,200 S. Moyer, capital 20,950 (5,900 P. Roper, capital 2,550 $100,900 $100,900 The partners share income and loss 5:3:2. During the process of liquidation, the following transactions were completed in the following sequence. 1. 2. 3. 4. A...
Kindly, provide short answers. Thank you. Class Discussion Exercise- Accounts Receivable Audit Objectives and Procedures for...
Kindly, provide short answers.
Thank you.
Class Discussion Exercise- Accounts Receivable Audit Objectives and Procedures for Accounts Receivable. In the audit of accounts receivable, auditors develop specific audit assertions related to the receivables. They then design specific substantive procedures to obtain evidence about each of these assertions, Here is a selection of accounts receivable assertions: Accounts receivable represent all amounts owed to the client company at the balance sheet date. b. a. The client company has a legal right to...
What is the best type of evidence to evaluate existence of accounts receivable? Tracing Observation Reperformance...
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Need help with e and f Both are ending inventory and COGS Cash Accounts Receivable Inventory...
Need help with e and f
Both are ending inventory and COGS
Cash Accounts Receivable Inventory Equipment Debit $4,500 4,800 2,400* 24,000 $35,700 Accumulated Depreciation-Equipment Accounts Payable Owner's Capital Credit $1,100 3,200 31,400 $35,700 *(4,000 x $0.60) The following transactions occurred during December: Dec. 3 Purchased 4,000 units of inventory on account at a cost of $0.74 per unit. 5 Sold 4,300 units of inventory on account for $0.90 per unit. (Bonita sold 4,000 of the $0.60 units and 300...
Audit of which of the following accounts most likely to reveal evidence relating to recorded retirements...
Audit of which of the following accounts most likely to reveal evidence relating to recorded retirements of equipment? 1) Accumulated deprection 2) Cost of good sold 3) Purchase returns and allowances 4) Purchase discounts
For each of the following specific audit procedures, indicate the type of audit evidence it is...
For each of the following specific audit procedures, indicate the type of audit evidence it is gathering: (1) Inspection of records or documents, (2) inspection of tangible assets (3) observation, (4) inquiry, (5) confirmation, (6) recalculationreperformance (8) analytical procedures, and (9) scanning. The audit evidences can be used more than once a Discussing the recording of sales discounts in the fourth quarter with the accounts receivable manager b Examining sales invoices for supporting customer order and shipping documents c Reviewing...
A How long must Inventory and Accounts Receivable be financed given the following data? 1 2...
A How long must Inventory and Accounts Receivable be financed given the following data? 1 2 Item 3 Inventory 4 Accounts Receivable 5 Accounts Payable 6 Net Sales 7 Cost of Goods Sold Beginning $2,000,000 $1,600,000 $750,000 $11,500,000 $8,200,000 Ending $3,000,000 $2,000,000 $1,000,000
Assets Cash Accounts receivable Allowance for doubtful accounts Inventory Equipment Accumulated depreciation-equipment Blossom Company Balance Sheet May 31, 2020 Liabilities and Owners' Equity $29,900 Notes payable $13,500 24,000 Accounts payable 27,500 (1,400) Salaries and wages payable 3,900 34,100 A. Jamison, capital 32.500 20,200 S. Moyer, capital 20,950 (5,900 P. Roper, capital 2,550 $100,900 $100,900 The partners share income and loss 5:3:2. During the process of liquidation, the following transactions were completed in the following sequence. 1. 2. 3. 4. A...
Kindly, provide short answers.
Thank you.
Class Discussion Exercise- Accounts Receivable Audit Objectives and Procedures for Accounts Receivable. In the audit of accounts receivable, auditors develop specific audit assertions related to the receivables. They then design specific substantive procedures to obtain evidence about each of these assertions, Here is a selection of accounts receivable assertions: Accounts receivable represent all amounts owed to the client company at the balance sheet date. b. a. The client company has a legal right to...
Need help with e and f
Both are ending inventory and COGS
Cash Accounts Receivable Inventory Equipment Debit $4,500 4,800 2,400* 24,000 $35,700 Accumulated Depreciation-Equipment Accounts Payable Owner's Capital Credit $1,100 3,200 31,400 $35,700 *(4,000 x $0.60) The following transactions occurred during December: Dec. 3 Purchased 4,000 units of inventory on account at a cost of $0.74 per unit. 5 Sold 4,300 units of inventory on account for $0.90 per unit. (Bonita sold 4,000 of the $0.60 units and 300...
A How long must Inventory and Accounts Receivable be financed given the following data? 1 2 Item 3 Inventory 4 Accounts Receivable 5 Accounts Payable 6 Net Sales 7 Cost of Goods Sold Beginning $2,000,000 $1,600,000 $750,000 $11,500,000 $8,200,000 Ending $3,000,000 $2,000,000 $1,000,000
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