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E. 178
UDEN SUPPLY COMPANY
Comparative Income Statements
Years Ended Deoember 20x1. 20m. and 2013
cfw_Thousands
2011 2012 2013 2020:
Audited Audited Audited Expected
Sal
7-24
- Tone at the Top
(a)
(1)
If you cant think of an instance right now, you may
someday run across it in yourself or someone you know.
People do change to fit in with the environment. If the
enviro
1-25
1-28
1-37
SOX penalties for corporate fraud, restricts the kind of consulting CPA firms can perform for
audit clients, creates the PCAOB to essentially regulate CPAs.
PCAOB registers firms that a
12-31
Adapted AICPA Task Based Simulation
Solution
Situation
Inherent Risk
Factor
a. Sales orders for a textbook distributor
have increased 100% over the last year.
Additionally, the companys inventor
Chapter 16 Auditing Operations
1) Segregation of duties in payroll brainstorm What does this segregation prevent?
Payroll preparation, record keeping, approving time worked, access to cash, reconcilia
14-39 - What is the long-term skill here? All accountants need to consider whether or not their work is
complete. Below are the matters considered by the auditor before year-end, around year-end and a
5-34 audit risk equation (This is a key audit theory)
All accountants routinely do one variable algebra. This problem is about solving for one
unknown variable in an equation.
The equation is AR = IR
3-35 Impaired independence
This problem is about the matters that impair a CPAs independence. here are
seven situations that impair independence.
1) Self-review I cant audit my own work. I cant determ
14-39 - What is the long-term skill here? Why is thinking about matters in terms of these time frames
useful?
Before yearend_Y/E_After year-end
What will we consider before year-end?
What will we cons
Fall 2017 - Auditing, Metropolitan State
Chapter Reading and Ungraded Textbook
Homework
1 and 2 Introduction and professional
standards (chapters 1 and 2)
Textbook problems to
understand
1-25, 1-28, 1
Computing the turn ratios for 5-55 - how to get to the textbook turn amounts
receivables
inventory
(a)
turn
183767
39438.5
4.7
days
365
78.33317
(a)
(51076+27801)/2
(b)
turn
94934
29365
3.2
365
112.90
10-32
This problem considers the assertion of cut-off as it relates to cash and current
liabilities. One of the goals of financial reporting is sufficient information for investors
to assess solvency.
Chapter 4 Exercise Problems
1. A bank offers to lend you $1,000 if you sign a note to pay $1,610.50 at the end of five
years. What rate of interest would the bank be charging you?
2. Last year, ABC In
Chapter 7 Exercise Problem
International Biking Corporation (IBC) has been growing at a rate of 25% per year in recent years.
This same growth rate is expected to last for another two years. The growt
Chapter 4 Exercise Problems
1. A bank offers to lend you $1,000 if you sign a note to pay $1,610.50 at the end of five years. What rate
of interest would the bank be charging you?
2. Last year, ABC In
Chapter 14
Problems 4, 10
Input boxes in tan
Output boxes in yellow
Given data in blue
Calculations in red
Answers in green
NOTE: Some functions used in these spreadsheets may require that
the "Analys
Chapter 11. PROJECT ANALYSIS AND EVALUATION
Q 11-1, 2, 3, 4, & 6;
CONCEPTS REVIEW AND CRITICAL THINKING QUESTIONS
1. Forecasting Risk [LO1] What is forecasting risk? In general, would the degree of
fo
CHAPTER 2 Questions
1. Liquidity [LO1] What does liquidity measure? Explain the trade-off a firm faces
between high liquidity and low liquidity levels.
Liquidity measures the speed and ease of the con
Chapter 9. NET PRESENT VALUE AND OTHER INVESTMENT CRITERIA
1. Payback Period and Net Present Value [LO1, 2] If a project with conventional cash flows
has a payback period less than the project's life,
CHAPTER 10
MAKING CAPITAL INVESTMENT DECISIONS
REQUIRED: Q 10-1, 2, 3, 4 & 6;
1. Opportunity Cost [LO1] In the context of capital budgeting, what is an opportunity cost?
Opportunity cost refers to the
CHAPTER 7
1.
INTEREST RATES AND BOND VALUATION
Treasury Bonds [LO1] Is it true that a U.S. Treasury security is risk-free?
No, as interest rates change, the value of security changes.
2.
Interest Rate
CHAPTER 5
1.
INTRODUCTION TO VALUATION: THE TIME VALUE OF MONEY
Present Value [LO2] The basic present value equation has four parts. What are they?
Rate, Time, Amount needed, and Amount you must inves
CHAPTER 1
1. The Financial Management Decision Process [LO1] What are the three types of
financial management decisions? For each type of decision, give an example of a
business transaction that would
CHAPTER 3 WORKING WITH FINANCIAL STATEMENTS
1. Current Ratio [LO2] What effect would the following actions have on a firms
current ratio? Assume that net working capital is positive.
1. Inventory is p
CHAPTER 6
6.1 Present Values with Multiple Cash Flows A first-round draft choice quarterback has been
signed to a three-year, $25 million contract. The details provide for an immediate cash bonus of
Chapter 8. STOCK VALUATION
1. Stock Valuation [LO1]Why does the value of a share of stock depend on
dividends?
Because that is what investors will actually receive.
2. Stock Valuation [LO1]A substanti
Chapter 12. SOME LESSONS FROM CAPITAL MARKET HISTORY
Q 12-3 & 5;
CONCEPTS REVIEW AND CRITICAL THINKING QUESTIONS
1. Investment Selection [LO4] Given that IDT Corporation was up by about 429 percent fo
Chapter 9. NET PRESENT VALUE AND OTHER INVESTMENT CRITERIA
1.
Payback Period and Net Present Value [LO1, 2] If a project with conventional cash flows has a payback
period less than the project's life,
CHAPTER 10
MAKING CAPITAL INVESTMENT DECISIONS
REQUIRED: Q 10-1, 2, 3, 4 & 6;
1. Opportunity Cost [LO1] In the context of capital budgeting, what is an opportunity cost?
2. Depreciation [LO1] Given th