AUDITING CHAPTER 5 HOMEWORK
2. The two components of the risk of material misstatement are inherent risk and control risk.
Inherent risk is the possibility of material misstatement of an assertion before considering the
clients internal control, and contr
Auditing Chapter 1 Homework
2. Assurance services is the broad range of information enhancement services
performed by CPAs that are designed to enhance the degree of confidence in the
information. The two types are those that increase the reliability of i
CHAPTER 2 HOMEWORK
1. The AICPA sets standards for nonpublic companies by the formation of the
Accounting Standards board and the Statements of Auditing Standards. The
PCAOB works with public companies to make sure that they are in complianc
AUDITING CHAPTER 4
1. Liabilities regarding CPAs exceed those of physicians and other
professionals because of the sheer number of people that would suffer
major losses due to their malpractice.
2. Ordinary Negligence is a violation of a legal du
Auditing- Chapter 3 Homework
4. The principles are goal-oriented, positively stated statements on the profession's responsibilities
to the public, clients and fellow practitioners. The principles provide the framework for the rules
which are the requireme
CASE 1 ANALYSIS AND AUDIT PLAN
Brandi Hicks & MOLISSA JORDAN
a. What is the Companys Industry?
b. What are its Primary Products?
Cigarettes and Smokeless Tobacco
c. What Raw Materials does the Company use?
Cost of Finished Good Manufactured
For the Month Ended June 30, 2014
Direct Materials Used:
Raw Material June 1
Raw Materials Purchases
Raw Materials Available For Use
Raw Materials June 30
Direct Labor Co
Governmental vs. Corporate Accounting
Governmental accounting is used in organizations, where their main interest is not to
maximize profits but to operate to solely to serve a particular charitable mission, such as
churches, charities, labor unions, etc.
Unlike the City of Detroit, whose fall was in the making for several decades, Harrisburg,
Pennsylvanias problems were seemingly caused by a single event. The City of Harrisburg has
had issues with dealing with their garbage. Due to their in
City of Detroit Bankruptcy
Detroits inability to produce sufficient cash flow is the main cause of their bankruptcy,
but there are other contributing factors that have caused the once thriving city to become one of
poverty. The city experienced a drastic
Defined Benefit vs. Defined Contribution Retirement Plans
There are multiple advantages to both defined contribution and defined benefit retirement
plans; however, each plan has disadvantages as well. If given a choice, it is best to research each
Que stion 1
Blackboar d Lear n
2 out of 2 points
At an activity level of 20,000 units produced, fixed cos ts total $30,000 and variable cos ts total $68,000.
As s um ing that this activity is within the relevant range, if 25,000 units are produced