VALLEY PUBLISHING COMPANY
#111 - Central State Bank
[Prepared by client]
Balance per bank, 12/31/x2
Add: Deposits in transit
Bank error - check paid by bank wasn't our check
Less: Outstanding ch
Chapter 11 - Accounts Receivable, Notes Receivable, and Revenue
Accounts Receivable, Notes Receivable, and Revenue
13. Your client performed the physical count of inventory as of November 30, one month
prior to year-end. Subsequently, your clie
Chapter 12 - Inventories and Cost of Goods Sold
Inventories and Cost of Goods Sold
12. Which of the following is not true relating to the auditors' observation of the client's
A. The auditors should evaluate the client's pla
Ch. 1 Outline
A. What service do auditors perform?
1. Assurance service - the broad range of information enhancement services that are
provided by certified public accountants (CPAs). The accountant must be
independent to perform these services.
a. Two ty
January 19, 2016
Module 1 Assignment
No. 2: Define assurance services. What are the two distinct types?
The name assurance services is used to describe a broad range of information enhancement
services that are provided by CPAs. Th
January 29, 2015
Chapter 2 Assignment
No. 2: What is the difference between GAAP and AICPA GAAS?
The main difference between GAAP and GAAS is that GAAP presents principles for accountants and
companies to follow when they are prepa
February 5, 2016
Chapter 3 Assignment
17. What are related party transactions?
Related party refers to individuals are entities who may have dealings with the client in which one
party is significantly influenced by the other such
February 19, 2016
Module 4 Assignment
8. Should a separate audit program be prepared for each audit engagement, or can a standard program
be used for most engagements?
A separate program should be prepared for each audit engagement,
February 27, 2016
Module 5 Assignment
No. 4: How does separation of the record keeping function from custody of assets contribute to internal
By separating the employee keeping the records from having access to the physica
March 5, 2016
Module 6 Assignment
2. Describe the difference between sampling risk and nonsampling risk.
Sampling risk is the risk that the auditors conclusion based on a sample might be different from
the conclusion they would rea
April 2, 2016
Module 7 Assignment
No. 1: Describe circumstances that might cause the auditors to identify understatement of assets as a
significant audit risk.
The auditors might identify understatement of assets as a significant a
April 9, 2016
Module 8 Assignment
No. 1: A customers order includes reviewing the items and quantities to determine whether the order
can be filled within a reasonable time, and a sales order is a translation of the terms of the cu
March 12, 2016
Chapter 10 Assignment
8. Explain three situations in which the wording of a report with an unmodified opinion might depart
from the auditors standard report.
Substantial doubt about an entitys ability to continue as
Chapter 10 - Cash and Financial Investments
Cash and Financial Investments
15. An internal control questionnaire indicates that an approved receiving report is required to
accompany every check request for payment of merchandise. Which of the f
Ch. 2 Outline
A. Auditing Standards
a. Two sets of auditing standards in the U.S.
i. AICPA, with the Auditing Standards Board, for nonpublic companies
ii. PCAOB for public companies
b. A third standard is the International Auditing Standards with differin
To determine that the clients accounting procedures are operating effectively, the auditors
perform tests of accuracy of the clients journals and ledgers. The auditors must manually
determine the documents are accurately entered to the journals
Auditing Hw Ch 2
2. GAAP uses the 10 generally accepted auditing standards used for public companies, is what
companies use to prepare financial statements. GAAS uses a set of principles that provide a
summary of information, is the standards that an audi
Basic to audit sampling is sampling risk - the risk that the auditors conclusion based on the
sample might be different from the conclusion they would reach if the examined every item in
the entire population. Auditors may also draw e
The organizational structure of an entity should separate responsibilities for authorization of
transactions, record keeping for transactions, and custody of assets. A well-designed
organizational structure provides a basis for planni
GAAP is containing accounting standards to prepare financial statements by CPA, where, GAAS,
on the other hand, provides set of standards for auditors by which the prepared financial
statements are comply with existing accounting ru
1150 Airport Rd Unit 109
Destin, Florida 32541
November 26, 2016
I am writing in response to your advertisement for the position of Financial Center Operations Manager.
With over 3 years of experience in bank
A sales order is a translation of the terms of the customer's order into a set of specific instruction
for the guidance of various divisions including the credit, finished goods stores, shipping, billing
and accounts receivable uni
Management of the privately held company may be motivated to understate assets so as to
minimize income taxes.
Bank accounts may not be recorded as to make possible unrecorded, illegal payments.
Management may wish to manage earnings
Substantial doubt about an entity's ability to continue as a going concern exists
Principles of accounting have not been consistently applied in relation to the prior year.
The auditors wish to emphasize some matter in the financial
Substantiation of the figure for inventories is an especially challenging task because of the
variety of acceptable methods of valuation. In addition, the variety of materials found in
inventories calls for considerable experience and
Auditing Hw Ch 1
2. Define assurance services. What are the two distinct types?
Assurance services is professional services that enhance the quality of information or its
context, for decision makers, many assurance services involve some form of attestati