The determination of an appropriate sample on a representative basis must be made using statistical
Analytical procedures, such as vertical analysis, ratio calculations, and time series analysis, are usually
done on a s
Internal controls are put in place to keep the company on course toward achieving its goals.
Controls such as those to protect inventory should be put in place no matter what the cost.
General controls like environm
The purchase of fixed assets is part of the finance and investment cycle.
The inherent risk associated with the finance and investment cycle is less than that associated with other
cycles, especially given the low number of tran
Management fraud is an intentional act that injures investors or creditors.
Fraudulent financial reporting is an intentional act that results in materially misleading financial statements.
External auditors are req
Money laundering refers to the proper processing of cash receipts.
The revenue and collection process includes activities from preparing the initial sales order through
recording the transaction in the sales journal.
EX & Problem -6
Opposite the examples of transaction errors lettered a-g, write the name
of the control objective auditees wish to achieve to prevent, detect, or
correct the error.
Opposite each numbered control procedure, place an "X" in the column
Auditing standards apply to work on all audited financial statements but not to work on other assurance
A review engagement consists primarily of enquiry, analytical procedures, and discussion.
Employees in the receiving department should inspect materials received as to quality and quantity and
prepare a receiving report.
Limiting access to blank documents, such as purchase orders, is part of the custody duty in the a
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Chapter 9 Mini Case
#1 Pontificate and Associates (PA) are a regional audit firm operating in
South East Ontario. Their chief partner, Louis Pontificate, received his
CA designation in the early 1960's. Since starting his own audit firm in
1965, he has se
Assurance engagement an engagement where an accountant expresses a conclusion or opinion
on subject matter, which enhances the degree of confidence of intended users. The most common
assurance engagement is an audit of finan
Chapter 15 mini case solution
Subsequent events are events that occur after the balance sheet date.
There are two types. Type 1 consists of events providing additional
evidence with respect to conditions that existed at the date of the
balance sheet and a
Chapter 15 Mini Case
#1 Tilbury Corporation had a number of material events occur
subsequent to the December 31, 2012 balance sheet. First, there was a
write-off of an accounts receivable from a debtor who had suffered from
deteriorating financial conditi
Chapter 12 mini case solution
One of the risks that the auditors face at the assertion level is disclosure,
which includes the requirement to disclose contractual commitments to
make future purchases at fixed prices. In addition to the requirement to
Chapter 12 Mini Case
#1 Lone Moon Brewing purchased bulk aluminum sheets and
manufactured its own cans. To ensure a source of raw materials, the
company entered into a long-term purchase agreement for 6 million
kilos of aluminum sheeting at 80 cents per k
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Humber College Auditing ACCT 309
Student Names: _
In Class Lab Assignment 2 Due March 1st Before Class
S-Trailers Inc. (25 Marks)
Jonathan graduated with a CPA designation ten years ago and has worked for the GMC
Corporation most of that time, eventually
2015-09-25, 12:37 PM
Chapter 1 is an introduction to auditing, especially financial statement auditing. Other accounting courses
helped you learn the principles and methods of accounting, but here you will begin to study the ways and
What You Really Need to Know
CH 14 Finance and Investment Process
Smieliauskas, Bewley 6th Canadian edition
1. If there are enough red flags present to indicate an increased risk of misstatement, the
auditors will assess a higher inherent risk. This assessment would result in: