Test 1 HW0 - ACCT 461 Fall 2010 Homework Assignments Note:...

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ACCT 461 Fall 2010 Homework Assignments Note: Students should consider these homework problems required to succeed in the course though these assignments will not be submitted for grading purposes Problems from Louwers: 1.49, 2.42, 2.50, 3.45, 3.47, 3.51, 3.53, B.45, C.54, C.61, 4.52, 4.54, 4.58, 5.65, 5.66. Apollo Shoes Case – Analytical Procedures 1. Calculate common-size financial statements for both 2006 and 2007 and dollar amount and percent changes between the two years. 2. Calculate the balance-sheet ratios and operations ratios for 2006 and 2007 and show the percent change. Use the formulas on p. 153 to calculate these ratios. 3. Identify potential areas of concerns based on the analytical procedures and suggest additional audit tests (minimum of three). To access the information, go to the Apollo Shoes case on the book’s website. Click on “Planning” and then click on the “Trial Balance (Excel Format)” link to access the information. Apollo Shoes Case – Internal Controls The next page contains a list of errors found during the audit related to the revenue cycle, and the following page documents Apollo Shoes’ related controls. The last page is an email from the staff auditor who performed the audit work, which gives additional explanation regarding the errors found. 1. For each error type, document whether the control error relates to design effectiveness or operational effectiveness. For errors related to design effectiveness, suggest a control that would prevent this problem in the future. (You only need to discuss each type of error once.) 2. Write a 1-2 paragraph summary of the audit findings. Should the auditors rely on the controls for the revenue cycle? How will these findings affect the rest of the audit?
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ICC-2 BC Deviation Sample # Invoice Month Day Amount Customer 1 21 39918 Sep. 23 $35,029 Nuke Me 2 37 39357 Aug. 28 $11,326,574 Mall-Warts 3 50 35669 Apr. 18 $2,447,119 Mall-Warts 4 51 41612 Dec. 10 $2,165,501 Run For Your Life 5 52 42056 Dec. 28 $730,588 Shoe Shack 6 61 40812
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This note was uploaded on 02/05/2011 for the course ACCT 461 taught by Professor Staff during the Spring '08 term at George Mason.

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Test 1 HW0 - ACCT 461 Fall 2010 Homework Assignments Note:...

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