ACC 410 Week 5

ACC 410 Week 5


Asked by 5 years ago
398.7k points

ACC 410 Week 5

Final Paper The final paper will be based on Appendix 6C Illustrative Audit Case: Keystone Computers at pages 233-240 in your text. Write, in outline format but in complete sentences, a 6 to 10 page audit plan. It is recommended that you look at Figure 18.8 on page 703, which shows the control objectives related to accounts receivable. In your audit plan cover the steps necessary to determine if you should select the client, the internal control procedures which need to be reviewed, the substantive tests [using accounts receivable a guide], and the final reporting steps. Based on the actual facts in the case determine the emphasis you want to place on various accounts. Also reflect back over your entire accounting program and think about how the accounts are interrelated. For example, when allowance for doubtful accounts is credited the offset is to bad debt expense. Therefore one of the steps should be to trace the debit side of the entry to the balance for bad debt expense. Make your comments as specific as possible. Rather than say look for unusual entries, say look for entries from unusual sources and rounded amounts with focus on those near an accounting cut off. Use precise language. Rather than saying you vouched accounts payable, say that you looked at the item to determine that it was a bona fide business expense. Remember to focus on the key audit objectives and support needed after applying the audit risk model. Remember, the purpose of the Final Paper is for you to culminate the learning achieved in the course by describing your understanding and application of knowledge in the field of accounting. The Final Paper should focus on real life, real time application of topics covered in this course; the uses you have seen and the uses you can envision. The paper must be submitted to your instructor no later than the last day of class. Earlier submittal is appreciated. Assignment Audit Report Modifications. Complete 17-35 (p. 683-684). List a represents the types of opinions the auditor ordinarily would issue and List B represents the report modifications  [if any] that would be necessary. Select as the best answer for each situation [items 1 to 6] the type of opinion and modifications, if any, the auditor would normally select. The types of opinions in List A and the report modifications in List B may be selected once, more than once, or not at all. The paper should be 2-3 pages. Problem 17-35 (p. 683): Items 1 through 6 present various independent factual situations an auditor might encounter in conducting an audit. For each situation assume: Assume: The auditor is independent. The auditor previously expressed an unqualified opinion on the prior years financial statements. Only single-year (not comparative) statements are presented for the current year. The conditions for an unqualified opinion exist unless contradicted in the factual situations. The conditions stated in the factual situations are material. No report modifications are to be made except in response to the factual situation. Situations: 1. In auditing the long-term investments account, an auditor is unable to obtain audited financial statements for an investee located in a foreign country. The auditor concludes that sufficient appropriate audit evidence regarding this investment cannot be obtained. 2. Due to recurring operating losses and working capital deficiencies, an auditor has substantial doubt about an entitys ability to continue as a going concern for a reasonable period of time. However, the financial statement disclosures concerning these matters are adequate. 3. A principal auditor decides to take responsibility for the work of another CPA who audited a wholly owned subsidiary of the entity and issued an unqualified opinion. The total assets and revenues of the subsidiary represent 17 percent and 18 percent, respectively, for the total assets and revenues of the entity being audited. 4. An entity issues financial statements that present financial position and results of operations but omits the related statement of cash flows. Management discloses in the notes to the financial statements that it does not believe that statement of cash flows to be a useful financial statement. 5. An entity changes its depreciation method for production equipment from straight-line to a units-of-production method based on hours of utilization. The auditor concurs with the change, although it has a material effect on the comparability of the entitys financial statements. 6. An entity discloses certain lease obligations in the notes to the financial statements. The auditor believes that the failure to capitalize these leases is a departure from generally accepted accounting principles. Required: List A represents the types of opinions the auditor ordinarily would issue and List B represents the report modifications (if any) that would be necessary. Select as the best answer for each situation (items 1 through 6) the type of opinion and modifications, if any, the auditor would normally select. The types of opinions in List A and the report modifications in List B may be selected once, more than once, or not at all.

Discussion Questions Audit Reporting. Complete 17-9 (p. 676). Remember to complete all parts of the problems.  Do not forget to show the necessary steps and explain how you attained that outcome. Audit Reports. Complete 17-12 (p. 676). Remember to complete all parts of the problems. Do not forget to show the necessary steps and explain how you attained that outcome.

ACC 410
maddy

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Answered by 5 years ago
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 ACC 410 Week 5

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Excerpt from file: Week 5 DQ1 Audit Reporting - 17-9 (p. 676) - ACC410 Auditing Discussions Audit Reporting. Complete 17-9 (p. 676). Remember to complete all parts of the problems. Do not forget to show the necessary steps and explain how you attained that outcome. 179

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