22.4 Mickie Louderman is the new assistant controller of Pickens Publishers. She was the
controller of a company in a similar industry, where she was in charge of accounting and
had considerable influence over computer center operations. Pickens wants to
21.6 A large organization had 18 months to replace its old customer information system
with a new one that could differentiate among customer levels and provide
appropriate products and services on demand. The new system, which cost $1
million and was ins
SUGGESTED ANSWERS TO THE CASES
20-1 Audio Visual Corporation (AVC) manufactures and sells visual display equipment. Headquartered
in Boston, it has seven sales offices with nearby warehouses that carry its inventory of new
equipment and replacement parts.
Refer to Figure 18-4 and Table 18-1. How would you determine the amount of cash
that Freds Train Shop has at any point in time?
To calculate the amount of cash that Freds Train Shop has at a particular point in time,
you would need to query three tab
Model the cardinalities of the following business policies:
a. The relationship between the Sale and Receive Cash events for installment sales.
b. The relationship between the Sale and Receive Cash events at a convenience
13.10 Last year the Diamond Manufacturing Company purchased over $10
million worth of office equipment under its special ordering system,
with individual orders ranging from $5,000 to $30,000. Special orders are
for low-volume items that have been include
12.9 Figure 12-18 depicts the activities performed in the revenue cycle by the
Newton Hardware Company.
(CPA Examination, adapted)
a. Identify at least 7 weaknesses in Newton Hardwares revenue cycle.
Explain the resulting threat and suggest methods to cor
You are performing a financial audit of the general ledger accounts of Preston
Manufacturing. As transactions are processed, summary journal entries are added to the
general ledger file at the end of the day. At the end of each day, the general journ
Which control(s) would best mitigate the following threats?
a. The hours worked field in a payroll transaction record contained the
value 400 instead of 40. As a result, the employee received a paycheck
for $6,257.24 instead of $654.32.
A limit check
9.1 Match the terms with their definitions:
1. _d_ Virtual Private
2. _k_ Data Loss
3. _a_ Digital signature
4. _j_ Digital certificate
5. _e_ Data masking
6. _p_ Symmetric
7. _h_ Spam
8. _i_ Plaintext
9. _l_ Hash
8.4 Which preventive, detective, and/or corrective controls would best mitigate
the following threats?
a. An employees laptop was stolen at the airport. The laptop contained personally
identifying information about the companys customers that could potent
7.12 PriceRight Electronics (PEI) is a small wholesale discount supplier of electronic
instruments and parts. PEIs competitive advantage is its deep-discount, three-day
delivery guarantee, which allows retailers to order materials often to minimize instor
Identify the computer fraud and abuse technique used in each the following actual
examples of computer wrongdoing.
Each of these real-world scenarios were taken from news accounts of computer fraud and
abuse. There may be other valid answers, but the
5.10 Lexsteel, a manufacturer of steel furniture, has facilities throughout the United States.
Problems with the accounts payable system have prompted Lexsteels external auditor
to recommend a detailed study to determine the companys exposure to fraud and
4.10 From the database created in the comprehensive problem, perform queries based on the
tables and query grid shown in Table 4-19.
The queries and the answers to the queries for the questions about the comprehensive problem data
(Table 4-19) are shown b
Prepare a context diagram and at least two levels of DFDs for this
Course closed notice
Suggested answers to the assignment of Chapter 2
2.9 You were hired to assist Ashton Fleming in designing an accounting system for S&S. Ashton
has developed a list of the journals, ledgers, reports, and documents that he thinks S&S needs (see
Suggested answers to assignment of Chapter 1
1.6 The use of IT at Tesco
What kind of information do you think Tesco gathers?
The Clubcard application filled out in the store captures data such as customer names,
addresses, household size, ages
Auditing 1 - Answer to Assignment 10 IT on Audit
A schedule showing the pertinent transaction-related audit objectives and application
controls for each type of misstatement is as follows:
Auditing 1 - Answer to Assignment 9 Receivable
The two types of confirmations used for confirming accounts receivable are
"positive" and "negative" confirmations. A positive confirmation is a letter,
addressed to the debtor, requesting t
Auditing 1 - Answer to Assignment 8 Sales
Recorded sales are to valid customers who are able to pay
S elect a sample of sales recorded in the sales journal and
d etermine if the app
Auditing 1 - Answer to Assignment 8 Audit Programme
The eight balance-related audit objectives and related procedures are as follows:
Auditing 1 - Answer to Assignment 6 Materiality and Risk
The justification for a lower preliminary judgment about materiality for
overstatements is directly related to legal liability and audit risk. Most
auditors believe that they have a
Auditing 1 - Answer to Assignment 5 Audit Planning
During the course of the plant tour the CPA will obtain a perspective of the clients business,
which will contribute to the auditors understanding of the entity and its environment.
Auditing 1 - Answer to Assignment 4 Audit Evidence
Confirmations are normally more reliable evidence than inquiries of
t he client because of the independence of t he outside party
confirming the information.
Confirmation of bank balan
Auditing 1 - Answer to Assignment 3 Role and Responsibilities
a. Auditing standards indicate that reasonable assurance is a high level of
assurance. Accordingly, financial statement users should h ave a high degree of
c onfidence in the fina
Auditing 1 - Answer to Assignment 2 Regulatory Framework
Acceptance and continuation of clients and engagements
Auditing 1 - Answer to Assignment 1 - Professional Ethics
REQUIREMENTS OF THE
HOLMES' ACTIONS RESULTING IN FAILURE TO COMPLY WITH
1. Competence - The auditor
must have adequate technical
training and proficiency t
The Research about Consumers'
Purchase Intention of
Reusable shopping bags
This study aims to explore how substitute price, design, shopping situation and peoples
Solution Manual of ARENS
Auditing and Assurance Service 13e
Consist of : 26 chapters
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