Chapter 15 Power Point

Chapter 15 Power Point - Chapter 15 Auditing Assets,...

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Chapter 15 Prepared by Adrianne E. Slaymaker, D.B.A. CPA Auditing Assets, Liabilities, and Equity Related to the Financing Cycle
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Cash and Near Cash Learning Objective #1 Common items considered near cash or cash equivalents are certificates of deposit, United States Treasury bills, and commercial paper. The overall audit goal for cash and near cash is to determine whether the amount is fairly presented in the financial statements and the disclosure is adequate. An important part of the audit of cash is to simultaneously consider all bank accounts. This simultaneous examination is needed because of the risk that funds transferred between bank accounts might be counted twice.
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Interbank Transfer Schedule Learning Objective #1
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INHERENT RISK: INVESTING AND FINANCING CYCLE Concerned with transactions related to the use of the organization's funds (investing) and sources of those funds (financing) other than operations. Accounts affected by investing and financial cycle transactions include - Non Current Assets: investments; property, plant and equipment; etc. - Non Current Liabilities: notes and bonds payable, etc. - Stockholders' equity accounts - Current Asset – Marketable Securities Related party transactions Complex transactions in investments and marketable securities Loan covenants Asset Impairments Leases, Pensions, Franchises & other technical accounting areas
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Investments Learning Objective #2 When the period of time before the funds need to be disbursed is longer, a company typically puts the funds
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Chapter 15 Power Point - Chapter 15 Auditing Assets,...

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