Accounting and Auditing Standards. 2022 Best
This assignment focuses on accounting and auditing standards. The firm of Bell & Greer, CPAs, has been asked to perform attest services for Trek Corporation (a nonpublic company) for the year ended December 31, Year 5.
Accounting and Auditing Standards.
The firm of Bell & Greer, CPAs, has been asked to perform attest services for Trek Corporation (a nonpublic company) for the year ended December 31, Year 5. Bell & Greer has two offices: one in Los Angeles and the other in Newport Beach. Trek Corporation would be audited by the Los Angeles office. For each of the following cases, indicate whether Bell and Greer’s independence is definitely impaired. If it is not definitely impaired, but might be under some circumstances, discuss those circumstances. a. A partner in the Los Angeles office of Bell & Greer has been a long-time personal friend of the chief executive officer of Trek Corporation.
Accounting and Auditing Standards.
b. The former controller of Trek Corporation became a partner in the Newport Beach office of Bell & Greer on March 15, Year 5, resigning from Trek Corporation on that date. C. A manager in the Newport Beach office of Bell & Greer is the son of the treasurer of Trek Corporation. d. A partner in the Los Angeles office of Bell & Greer jointly owns a cattle ranch in Montana with one of the directors of Trek Corporation. The value of the investment is material to both parties. e. Trek Corporation has not yet paid Bell & Greer for professional services rendered in Year 4.
Accounting and Auditing Standards.
This fee is substantial in amount and is now 15 months past due. 5-37 Analytical procedures are extremely useful throughout the audit. a. Explain how analytical procedures are useful in: 1) The risk assessment stage of the audit 2) The substantive procedures stage of the audit 3) Near the end of the audit b. List the five sources of information that are available to the auditors in developing expectations for analytical procedures c. List and describe four techniques that may be used by the suitors in developing expectations for analytical procedures.
Accounting and Auditing Standards.
5-50 During your examination of the accounts receivable of Hope Ranch, a new client, you notice that one account is much larger than the rest, and you therefore decide to examine the evidence supporting this customer’s account. Comment on the relative reliability and adequacy of the following types of evidence: a. Computer printout from accounts receivable subsidiary ledger. b. Copies of sales invoices in amount of the receivable. c. Purchase orders received from customer. d. Shipping documents describing the articles sold.
Accounting and Auditing Standards.
e. Letter received by client from customer acknowledging the correctness of the receivable in the amount shown on client’s accounting records. f. Letter received by auditors directly from customer acknowledging the correctness of the amount shown as receivable on client’s accounting records. 6-24 Morgan, CPA, is approached by a prospective audit client who wants to engage Morgan to perform an audit for the current year. In prior years, this prospective client was audited by another CPA. Identify the specific procedures that Morgan should follow in deciding whether to accept this client. 6-45 Precision Industries, Inc., is a manufacturer of electronic components. https://youtu.be/6d4f4l0GO8E
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