Positive accounting theory
Positive accounting theory (PAT) is a general term for any theory that
provides descriptive information regarding the behavior of accountants. The
title has been used by Watts and Zimmerman and this is large
DESHUN MOSS CONDELL
ACCOUNTING THEORY 315
Relevance is a qualitative characteristic in accounting. Relevance is associated with
information that is timely, useful, has predictive value, and is going to make a difference
to a decis
1-8 What are the differences and similarities in audits of financial statements,
compliance audits, and operational audits?
Audits of Financial statements, operational audits, and compliance audits are
similar in that
7-22 (Objective 7-5) Who owns the audit files? Under what circumstances can they be
used by other people?
Audit documentation prepared during the engagement, including schedules
prepared by the client for th
4-3 Distinguish between business failure and audit risk. Why is business failure a
concern to auditors?
Business failure occurs when a business can no longer pay its lenders or
meet expectations of investors because of
I found this online, Im going to do some more research and send more information.
Research Problem 6-1: International and PCAOB Audit Objectives.
This problem requires you to access authoritative standards to compare the objective of
an audit as defined b
3-23 The following questions concern unqualified audit reports. Choose the best
a. Which of the following is not a required element of a standard unqualified
audit report issued in accordance with
5-22 Each of the following situations involves possible violations of the AICPA
Code of Professional Conduct. For each situation, state whether it is a violation of
the Code. In those cases in which it is a
6-22 (Objective 6-6) The following questions deal with management assertions.
Choose the best response.
a. (3) Valuation and Allocation.
b. (2) Completeness.
c. (2) Completeness.
6-23 (Objectives 6-1, 6-3) A
An ethical dilemma is a situation that a person has to face when a decision
needs to be made about his/her behavior.
In the Bahamas, Anthony dropped his wallet in a store. David walked in
the store, fo
10-36 (Objective 10-3 10-4, 10-5) The following are misstatements that have
occurred in Fresh Foods Grocery Store, a retail and wholesale grocery
1. On the last day of the year, a truckload of beef
11-23 (Objective 11-2) During audit planning, an auditor obtained the
1. The companys controller works very hard, including evenings and
weekends, and has not taken a vacation in two
a) In my opinion the excerpt implies that the balance sheet is more important than the income
statement because it refers to the information contained in the income statement as residual
A- Recorded amount of entries in the acquisition journal
Documentation-consists of the client's business documents used to support accounting
events. The strength of documentation is that it is prevalent and available at a low cost.
Documents can be inter
AUDITING 1 (10-22, 10-23, 10-28, 11-22)
A serious weakness in the companys internal controls was the inadequate
segregation of accounting duties. James was given the combined duties of custody of
assets and accounting for tho
DESHUN MOSS CONDELL 000 00 6336
ASSIGNMENT FROM CHAPTER 15
15-8, 15-16, 15-17, 15-19, 15-20
a. Acceptable risk of
risk too low
The risk the auditor is willing to take of accepting a control as effective
The sample sizes for columns 1-7 are as follows:
Increase in ARACR.
Increase in TER.
Increase in EPER.
Increase in pop. si
October 27, 2011
DESHUN MOSS- CONDELL ACCOUNTING THEORY 315
Accounting concepts and conventions as used in accountancy are the rules and guidelines
by which the accountant lives. The historical cost accounting convention is an accounting
DeShun Moss- Condell
Answers for questions 1, 3, & 6 respectively
Audits scope is limited. The report type would be classified as qualified due to a
There is a lack of independence. This is a highly material issue. T
1Chapter 15 Audit Sampling for Tests of Controls and Substantive Tests of Transactions
15-1 A representative sample is one in which the characteristics of interest for the sample are approximately the same as for the population (that is,
Case 14-1 A
Workplace pension plans come in two broad varieties: Defined benefit pensions
and defined contribution pensions. Defined contri
THE NORTH AMERICN FREE TRADE AGGREEMENT
NAFTA is the worlds largest free trade area. The agreement between Canada, the U.S. and
Going Down Burma Road
by Larry Smith
Goin' down Burma Road.ain' ga lick nobody.
For most Bahamians Burma Road refers to the 1942 riots over pay for the men who worked on
the wartime air bases in Nassau. Two rioters were killed by British troops, more than
12-13 (Objective 12-6) Compare the risks associated with network systems to
those associated with centralized IT functions.
12-17 (Objectives 12-1, 12-4) The following questions concern the