(CASE#1)MARSH & MCLENNAN:they r an insurance brokerage - instead of going
straight to a company you can go to the broker to find the best price out there. They had
an agreement with the insurance comps that they receive a 6% commission on all
Queens College-CUNY-Department of Accounting and Information Systems
Accounting 321-Syllabus and Grading Policy-Professor Satenstein
Modern Auditing: Assurance Services and the Integrity of Financial Reporting: 8th
Edition: Boynton & Johns
(1) ENRON it is still around but its closing down. Enron was an energy comp that
had 2 types of business: risky which inc inventing new products and regular
includes selling energy to end users. Enron wanted to sell the risky part of
Acct 321 HW due
(a) types of calculations and comparison may include
Financial ratios: profitability ratios, liquidity ratios, turnovers (A/R, inventory etc). These
ratios provide the auditor with a better understandi
Accounting 321: Auditing I
An audit of financial statements is a systematic process of objectively obtaining and
evaluating evidence concerning assertions about economic actions and events and
assigning a degree of correspondence between those assertions
Engagement risk is:
A. The risk of issuing an incorrect audit opinion.
B. The auditor's risk of loss from events arising in connection with financial statements audited and
C. The overall risk of material misstatements.
Which of the following elements ultimately determines the specific auditing procedures that are
necessary in the circumstances to afford a reasonable basis for an opinion?
A. Auditor judgment.
C. Relative risk.
Which audit assertion ensures that all recorded sales are valid?
C. Existence or occurrence.
D. Valuation or allocation.
Who is responsible for setting auditing standards for audits of publicly-traded co
auditing and assurance 1
The essence of a financial statement audit is to
A. Detect fraud.
B. Examine individual transactions so that the auditor may certify as to their validity.
C. Determine whether the client's financial statements are fa
AUDIT TEST 1 REVIEW:
Chapter 1 CPA services
GAAS = generally accepted accounting standards standards that must be followed by
both private and public companies. It is issued by the Accounting Standards Board
(ASB) who are part of the AICPA
Assurance vs. A
Audit HW due 10/8/06
16. (a) Possible risks involved in this engagement:
Being that Sunny is a NEW company that contracts all of their work to other
companies they may not have the necessary expertise or personnel to deal
#3) Independent Auditor = CPA licensed accountant, they look over financial
statements of their clients. They are independent of their clients with their audits and
reports. This idea of independence is essential to the use
Audit HW due 10/1
20. (a) Internal Control over financial reporting is a process designed to provide
reasonable assurance about the reliability of the financial statements in
accordance with GAAP for outside users. (Its foun
(10) The principle difference between vouching and tracing is the direction of testing that
takes place. With vouching testing goes from the general ledger to the source, while with
tracing testing goes from the source to t
Audit HW CH3
a. A covered person is one who is a position to potentially influence audit decisions
or the outcome of an audit. Covered members include: (1) any member of the
engagement team, (2) partners and managers with consult
Debt and Debt Management
A financing tool used by businesses and governments to meet resource
Def. Debt is a tool that, when used prudently, helps governments plan and pay for large public works
projects. Borrowing is essential when the cost of a n
SAS # 103 Audit Documentation (Replaces SAS 41 Working Papers/SAS 96 Audit Documentation)
New terminology is audit documentation, which replaces the old terminology of
working papers. But working papers represent the documentation (that you acquire/put