Should Amy have filled out any IRS or Department of the Treasury forms given these cash transactions?
Amy could fill out the SAS No. 99 form if she was skeptical about where the money came from or she
could fill out the SAS No. 54 if illega
According to FASB ASU 740-10-25-16:
The amount of benefit recognized in the statement of financial position may
differ from the amount taken or expected to be taken in a tax return for the
current year. These differences represent unrecognized tax benefit
According to FASB ASC 470-10-50-1:
The combined aggregate amount of maturities and sinking fund requirements for all long-term
borrowings shall be disclosed for each of the five years following the date of the latest balance
sheet presented. (See Section
E21-3 (LO2,4) Lessee Entries, Capital Lease with Executory Costs and Unguaranteed
Assume that on January 1, 2017, Kimberly-Clark Corp. signs a 10-year noncancelable lease
agreement to lease a storage building from Sheffield Storage Company.
E22-11 (LO2,3) Error and Change in EstimateDepreciation
Joe Cunningham Co. purchased a machine on January 1, 2015. On December 31, 2018, the
firms accountant found that the entry for depreciation expense had been omitted in 2016. In
addition, management h
According to FASB ASC 960-205-50-1:
The financial statements shall include the following disclosures, if applicable:
a. A brief, general description of the plan agreement, including, but not
limited to, vesting and benefit provisions. If a plan agreement
Fair Value of Asset
Residual Value Expected
Annual Rental Payments
Incremental Borrowing Rate
Rate in determining the least payment
Bargin Purchase Option
No Cost Uncertainties
A. IAS 19 para 128:
Actuarial gains and losses result from increases or decreases in the present value of the defined
benefit obligation because of changes in actuarial assumptions and experience adjustments.
Causes of actuarial gains and losses include,
According to FASB ASC 715-30-35-24:
As a minimum, amortization of a net gain or loss included in accumulated other comprehensive
income (excluding asset gains and losses not yet reflected in market-related value) shall be
included as a component of net pe
According to FASB ASC 250-10-50-7:
When financial statements are restated to correct an error, the entity shall disclose
that its previously issued financial statements have been restated, along with a
description of the nature of the error. The entity al
In Sams case, the point could be made that he was the one that purchased
the ticket. Those were the numbers that he picked, that he paid money to
have, so therefore those numbers and the lottery win belonged to him. If
Sam hadnt picked them and if he woul
Regulations management is relying upon to increase sales of Solar-Electro division might not go
into effect for at least ten years
Auto-Electro accounts for nearly 15% of comp
1. Which of the following is an accurate statement regarding audit evidence?
The auditor uses evidence to determine whether the statements are fairly
2. An audit program is the list of audit procedures for an audit area or an
entire audit. True
1. When a company designs and implements internal controls, cost of the
controls is not a valid consideration. False
2. Which of the following is not an underlying principle related to risk
assessment? The auditors should determine how the company's risks
1. An exception in a test of control provides only an indication of the
likelihood of monetary misstatements in the financial statements because
tests of controls do not reveal whether monetary misstatements have
actually occurred. True
2. Which of the fo
1. Individuals engaged in conducting a fraud will generally not misrepresent information
to the auditor. False
2. Significant changes in the industry may increase the risk of material
misstatement at the assertion level. True
3. Which of the following is
1. Which of the following is not a common audit procedure used to search for contingent liabilities?
examine payroll reports.
2. What needs to be included in a standard inquiry to the client's attorney letter sent to a client's
Which of the following statements is most correct with respect to the evaluation of nonprobabilistic sample
-It is never acceptable to evaluate a nonprobabilistic sample using statistical methods.
In using audit sampling for exception rates
Misstatements involving the completeness objective for sales lead to overstatements of assets and income.
To test for recorded sales for which there were no actual shipments, the auditor vouches from the
-sales journal to the shipping documents.
1. The allowance for sampling risk when no misstatements are found in the sample is basic precision.
2. Monetary unit sampling is not particularly effective at detecting understatements
3. What is the purpose of applying stratified sampling to a populatio
1. The understatement of sales and accounts receivable is best uncovered by substantive tests of
transactions for shipments made but not recorded.
2. How might the auditor determine whether a client has limited rights to accounts receivable?
1. A questioning mindset: means the auditor should approach the audit with a
"trust but verify" mental outlook.
2. Which of the following is not one of the reasons that auditors provide only
reasonable assurance on the financial statements? Auditors belie
When taken together, the concepts of risk and materiality in auditing
-measure the uncertainty of amounts of a given magnitude.
Which of the following statements regarding inherent risk is correct?
-Most auditors set a high inherent risk in the first year
1. Lack of self reference - when a person uses language to separate themselves from what
they are talking about. A truthful person doesnt do this a much, whereas a person that is
not being truthful will speak in a passive voice or substitute I with you.
Real life and real death are never as clean as CSI's lead investigator, Gil Grissom, would have
us believe. And real forensics is seldom as fast, or as certain, as TV tells us. Too often, authorities
say, the science is unproven, the analyses u