AC 750 Fall 2014
Mid-Term Exam Information
The exam will be closed book and closed note. You may bring in one sheet of notes double-sided.
It must be hand-written in English. You will need to turn this in with your exam.
You will be given tax rate sched
Siqiong Factors Favoring Acceptance
No going concern
No significant changes
The company is solvent and profitable this year. Also its business has been operated for over 50 years.
The company has no going concern in the coming future.
The company has
Sales/Receivable:The Sales/Receivables reduced by 9.73%. It is lower than the industry average.
It means that the ability of Oceanview to collect receivable is lower the industry average.
Number of days sales in A
OCEANVIEW MARINE COMPANY
December 31, 2015
Accounts receivable: net (Notes 2 and 5)
Inventories (Notes 1(a), 3, and 5)
Total Current Assets
Property, Plant, and Equipment (Notes 1(
IT general controls are used to control the overall computing environment including all system
components, processes and data in an organization. The objective of IT general controls are to
make sure that applications are developed and implemented prop
First, the act requires the financial report of those broke and dealer be audited by a public
accounting firm that is registered with PCAOB. That reduces the possibility of those companies
providing fraud information to the clients because the
Revenue and Collection Cycle
Overall Audit Approach
Steps in Assessing
Set AR at desired
Assess risk of material
level of inherent risk
and control risk
Auditing and Information
"To err is human, but to really foul things up
you need a computer.
- Paul Ehrlich, American biologist, author, and
General Controls (ITGC)
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Explaining SOC: Easy as 1-2-3
What CPAs need to know about Service Organization Controls reports.
June 11, 2012
Public Company Accounting Oversight Board
Bylaws and Rules Standards AS3
AUDITING STANDARD No. 3 Audit Documentation
June 9, 2004
AUDITING AND RELATED PROFESSIONAL PRACTICE STANDARDS
Auditing Standard No. 3
[Effective pursuant to SEC
Diamond Foods, Inc.: A Comprehensive Case in Financial Auditing1
Auditors must approach their jobs with independence and skepticism. How do we
instill those necessary traits in auditors? This may be the most important auditing
question of our time.
Sampling Case Assignment
AC 741 Spring 2017
Please begin you assignment by reading the IIA Guide for Audit Sampling which can be
found on Blackboard. Next please locate the 2008 PCAOB Inspection Report of BDO Seidman
AC 741 Spring 2017
Short Answer Question
For this short answer question, please consider the three major approaches to ethical decision
making that were introduced in Module B. Specifically, please consider 1) the categorical
Case study 2
Xia Hua (Sara) and Kristen Jewers
1. According to Auditing Standard, inherent risk refers to the susceptibility of an assertion to a
misstatement due to error or fraud, before considering any control. First, given that the majority
Confirmation Testing Workpaper and Memo Student Deliverable
Work Paper Reference: 100-3
Prepared By: Xia Hua and Kristen Jewers
Date: _March 16, 2017_
Balance as of
Xia Hua and Kristen Jewers
Cash confirmation project
Final work paper
Simply Soups Inc.s cash balances in six financial institutions were selected to compare with the
reported balances. They were listed in following banks: Fifth Federal Bank, Sparka
Case study 1
4 Refer to Section 301 of SARBOX. Do you believe that Section 301 is important to maintaining
independence between the auditor and the client? Why or why not?
Section 301 requires the audit committee to establish whistle blo
1. A proper segregation of duties requires that an individual
A) Authorizing a transaction records it.
B) Authorizing a transaction maintain custody of the asset that resulted from the transaction.
C) Maintaining custody of an asset be
The Internal Audit Functions Changes should make
Since the case is stressing on the independence of audit reporting and
process. The recommendations are as follows:
First and foremost, the audit committee seemed to have limited influence
and involvement i
1. Journal entries that involved fraud in these case
In the Sunbeam fraud, the company manipulated its revenue by accelerating the
recognition of sales revenue. Most of journal entries that involved in the Sunbeam
Fraud are related to the unearned revenue
Review from Last Class
Three Principles Responsibilities,
Performance and Reporting
Which parties establish standards
Hierarchy of standards
Class 4 Opportunity
1. Which of the following risks may be assessed in nonquantitative terms?
Control Risk Detection Risk
2. The acceptable level of detection risk is inver
1. An auditor wishes to perform tests of controls on a client's cash disbursements
procedures. If the control activities leave no audit trail of documentary evidence, the
auditor most likely will test the procedures by:
a. *Observation and inquiry
Class 2 Opportunity
1. Which of the following procedures would an auditor most likely include in the planning
phase of a financial statement audit?
a. Obtain an understanding of the entitys risk assessment process
b. Identify the specific internal
Professor Kara Dugas
Review Last Class
Concepts and Calculation
AC 741 FINANCIAL STATEMENT
Originally from Bow, New Hampshire
BS from Bentley in 2009
Worked at Deloitte & Touche (Boston) in
MBA from Bentley in 2011
Became a CPA in 20