2 out of 2 points
A benefit of functional tactics is that the _ of developing them, when done right, can be a forum
for raising and resolving conflicts between strategic intent and operational realities due to operational
issues not imm
Chapter 2 Problems
Compliance audit, government auditor
Financial statement audit, external auditor
Operational Audit, external auditor
Forensic audit, forensic auditor
Operational Audit, government auditor
Chapter 6 Problems
A. May need a more detailed understanding of internal control to develop a preliminary or
planned assessment of control risk. The auditor uses the test results to assess the
achieved level of control risk. If the test results indic
You should name this spreadsheet using the naming convention "yourname.xlsx"
This Assignment requires that you prepare an Excel Spreadsheet - similar to one that would be used in practice in the planning
phase of the audit. The auditor must first develop
Chapter 3 Answers
11/200 Employees earned more than $85,000 in Total Compensation.
A. Materiality is 4.5% X 1,388,500 = $62,482.50
B. 62,482.50 X 65% = 40,613.63
C. Total from the detailed files in A/R is $489,930.33. 48
DAILY BIKE SHOP
For the Year ended December 31, 2014
Cost of Goods Sold
Gross Profit on Sales
Salaries, office and general
Client Continuance Memorandum
December 31, 2014
EarthWear Clothiers, Inc. produces high-quality clothing for outdoor
sports, such as hiking, skiing, fly-fishing, and whitewater kayaking. Over the
years, the companys product lines have
Advanced Financial Accounting
Consolidation Worksheet I
ABC Company Acquired a subsidiary (Sub) on January 1, 2010. The purchase price was $1.2million and the Sub's book value of net assets on the acquisition date was
$950,000. Part of the exc
Independent auditing can best be described as
A branch of accounting.
A discipline that provides assurance regarding the results of accounting and
other functional operations and data.
A professional activity that measures and communica
Case 2-1 WorldCom
1) Cash earnings account for revenue and expenses based on true cash flows. Accrual
earnings record a receivable or payable in the period that money is earned or expensed.
The effect on accrual earnings of capitalizing the line costs and
1) Daniels should report this issue to management to act honestly and with integrity. I
suggest this action because it is important and ethical to act with integrity so that
potential losses may be mitigated. My answer remains the same regardless
1) It doesnt sound like his friend has anything to do with the final hiring process, so I dont
think that Billy should call and ask his friend to find out if an offer is forthcoming.
However, I think that it would be acceptable to call an
1) Looking back on the pillars of character, I believe that trustworthiness and responsibility
are the significant character traits affecting this case. Neither party, Giles nor Regas,
exhibited trustworthiness in this matter because they were bo
In 2014, Chartres Inc., issued for $105 per share, 60,000 shares of $100 par value convertible preferred
stock. One share of preferred stock can be converted into three shares of Chartre's $25 par value
common stock at the option of the preferred stockhol
1. A debit memo
reduces the amount of accounts payable due to a vendor.
reduces accounts payable when payment is made.
is used by vendors to record cash payments received.
authorizes a debit to purchases when goods are received.
The structure of a simple organization:
Maximizes the owner's(s') control
What is meant by organizational structure?
Formalized arrangement of interaction and responsibility for tasks
Chapter 12 Quiz BSTAT
_ will increase pressure on corporations to push authority downward in their
organizations. This means every line manager will have to exercise leadership prerogatives to an extent
unthinkable a generation earlier.
Chapter 3 Problems
A. The successor auditor should make the following inquiries of the predecessor auditor
Information that might bear on the integrity of management.
Disagreements with management about accounting policies, auditing procedures, or o