Practice Problems Ch. 22 (ACCT-422)

Practice Problems Ch. 22 (ACCT-422) - Solutions to Chapter...

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Solutions to Chapter 22 Practice Problems 22-20 a. (2) b. (2) c. (2) 22-21 a. (4) b. (3) c. (1) 22-28 a. PURPOSE OF CONTROL b. POTENTIAL FINANCIAL STATEMENT MISSTATEMENT c. AUDIT PROCEDURES TO DETERMINE EXISTENCE OF MATERIAL MISSTATEMENT 1. To insure that records are properly maintained. Misstatement of owners' equity and the disbursement of dividends and capital to the wrong people. Determine if company uses services of an independent registrar, or transfer agent. Confirm details of equity accounts with them. 2. To insure that records are properly maintained. Misstatement of owners' equity and earnings per share. Account for all unissued certificates and account for all cancelled certificates and their mutilation. 3. To insure that the general ledger reflects the balance of supporting records. Misstatement of owners' equity and earnings per share. Trace postings from master file and stock certificates into general ledger. Reconcile master file to general ledger. 4. To insure that the
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This note was uploaded on 04/11/2010 for the course ACCT 422 taught by Professor Blake during the Spring '10 term at MD University College.

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Practice Problems Ch. 22 (ACCT-422) - Solutions to Chapter...

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