Homework Answers
For material events that transpired after the date of the financial statements, Disclosure in the financial statements or footnotes is required.
The answer is Disclosure in the financial statements or footnotes.
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Regarding subsequent events, how should information be documented in the financials for material events that transpired...
FINAL CASE STUDY QUESTION IN AUDITING Q11-15 You are currently completing the audit of Erbilek Co...
FINAL CASE STUDY QUESTION IN AUDITING Q11-15 You are currently completing the audit of Erbilek Co for the year ended 31 December 2018. It is planned that the financial statements will be approved on 18 March 2019 and the auditor’s report will be signed on that date. The financial statements will be issued on 5 April 2019. On 31 March 2019, you become aware that Erbilek Co’s major customer has ceased to trade. Audit documentation show that the customer’s account...
Question 1 (Marks: 10) Isomin Ltd has a year-end date of 31 March 2021. They have...
Question 1 (Marks: 10) Isomin Ltd has a year-end date of 31 March 2021. They have been in the business of textile design and production for fifteen years and are well respected in their industry. Before the final financial statements were authorised for issue on 31 May 2021, but after the reporting date, the following situations arose: (3) Q.1.1 The government announced a change to the tax law which will have a significant effect on the value of current tax...
The following are independent situations for which you will recommend an appropriate audit report Subsequent to...
The following are independent situations for which you will recommend an appropriate audit report Subsequent to the date of the financial statements as part of his post-balance sheet date audit procedures, a CPA learned that a recent fire caused heavy damage to one of a client's two plants; the loss will not be reimbursed by insurance. The newspapers described the event in detail. The financial statements and footnotes as prepared by the client did not disclose the loss caused by...
Part A: (8 Marks) The 31 December 2018 financial statements of Grape Ltd have been prepared...
Part A: (8 Marks) The 31 December 2018 financial statements of Grape Ltd have been prepared in draft form. However, the accounts have not yet been printed and sent to shareholders. Subsequent to reporting date, the following events occur: On 20 January 2019, the directors recommend a final dividend of $2 per share. The company received an invoice from a supplier for $85,000 on 25 January 2019 for goods delivered in December 2018. The goods were included in closing inventory...
ACC206: Financial Reporting 3.0 1. When bonds are sold at a discount and the effective interest...
ACC206: Financial Reporting 3.0 1. When bonds are sold at a discount and the effective interest method is used, at each subsequent interest payment date, which of the following is true? a. The cash paid for interest is less than the effective interest expense. b. The cash paid for interest is equal to the effective interest expense. c. The cash paid for interest is more than if the bonds had been sold at a premium. d. The cash paid for...
For each of the following items, assume that Josh Feldstein, CPA, is expressing an opinion on...
For each of the following items, assume that Josh Feldstein, CPA, is expressing an opinion on Scornick Company's financial statements for the year ended December 31, 2018; that he completed fieldwork on January 21, 2019, and that he now is preparing his opinion to accompany the financial statements. In each item a subsequent event is described. This event was disclosed to the CPA either in connection with his review of subsequent events or after the date on which the auditor...
1. Which of the following is false regarding common and federal securities laws? a. The securities...
1. Which of the following is false regarding common and federal securities laws? a. The securities act of 1933 deals only with the reporting requirements for companies issuing new securities. b. -Rule 10-5b of the securities exchange act of 1934 is also known as the antifraud provision. C. -Ultramares doctrine states that ordinary negligence is insufficient for liability to third parties because of the lack of privity of contracts. d. A scienter is a specialist used in Rule 10-5b investigations....
Canada Accounting System: CAS 560 The end of the financial year is December 31, 2020. The...
Canada Accounting System: CAS 560
The end of the financial year is December 31, 2020. The audit report was signed on February 15, 2021. The financial statements were approved by the board of directors on February 15, 2021, and released to the public that same day, along with the auditor's report Required You have been given a number of independent situations below. Describe what action should be requested of the client by the auditor in each of the following situations....
The auditor's responsibility section of the standard audit report states that the auditor is (15 A)...
The auditor's responsibility section of the standard audit report states that the auditor is (15 A) responsible for the financial statements and the opinion on them B) responsible for the financial statements C) responsible for the opinion on the financial statements .D) jointly responsible for the financial statements with management If the balance sheet of a private company is dated December 31, 2011, the audit report is dated February (16 8, 2012, and both are released on February 15, 2012,...
Please answer: What are the Material Level, the Additional Information, and the auditing report of 6...
Please answer: What are the Material Level, the Additional Information, and the auditing report of 6 situations below 1) Auto Delivery Company has a fleet of several delivery trucks. In the past, Auto Delivery had followed the policy of purchasing all equipment. In the current year, they decided to lease the trucks. The method of accounting for the trucks is therefore changed to lease capitalization. This change in policy is fully disclosed in footnotes. Given condition is "No conditions are...
Question 1 (Marks: 10) Isomin Ltd has a year-end date of 31 March 2021. They have been in the business of textile design and production for fifteen years and are well respected in their industry. Before the final financial statements were authorised for issue on 31 May 2021, but after the reporting date, the following situations arose: (3) Q.1.1 The government announced a change to the tax law which will have a significant effect on the value of current tax...
The following are independent situations for which you will recommend an appropriate audit report Subsequent to the date of the financial statements as part of his post-balance sheet date audit procedures, a CPA learned that a recent fire caused heavy damage to one of a client's two plants; the loss will not be reimbursed by insurance. The newspapers described the event in detail. The financial statements and footnotes as prepared by the client did not disclose the loss caused by...
For each of the following items, assume that Josh Feldstein, CPA, is expressing an opinion on Scornick Company's financial statements for the year ended December 31, 2018; that he completed fieldwork on January 21, 2019, and that he now is preparing his opinion to accompany the financial statements. In each item a subsequent event is described. This event was disclosed to the CPA either in connection with his review of subsequent events or after the date on which the auditor...
1. Which of the following is false regarding common and federal securities laws? a. The securities act of 1933 deals only with the reporting requirements for companies issuing new securities. b. -Rule 10-5b of the securities exchange act of 1934 is also known as the antifraud provision. C. -Ultramares doctrine states that ordinary negligence is insufficient for liability to third parties because of the lack of privity of contracts. d. A scienter is a specialist used in Rule 10-5b investigations....
Canada Accounting System: CAS 560
The end of the financial year is December 31, 2020. The audit report was signed on February 15, 2021. The financial statements were approved by the board of directors on February 15, 2021, and released to the public that same day, along with the auditor's report Required You have been given a number of independent situations below. Describe what action should be requested of the client by the auditor in each of the following situations....
The auditor's responsibility section of the standard audit report states that the auditor is (15 A) responsible for the financial statements and the opinion on them B) responsible for the financial statements C) responsible for the opinion on the financial statements .D) jointly responsible for the financial statements with management If the balance sheet of a private company is dated December 31, 2011, the audit report is dated February (16 8, 2012, and both are released on February 15, 2012,...
Please answer: What are the Material Level, the Additional Information, and the auditing report of 6 situations below 1) Auto Delivery Company has a fleet of several delivery trucks. In the past, Auto Delivery had followed the policy of purchasing all equipment. In the current year, they decided to lease the trucks. The method of accounting for the trucks is therefore changed to lease capitalization. This change in policy is fully disclosed in footnotes. Given condition is "No conditions are...
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