• Q : Audited financial statements in a clients document....
    Accounting Basics :

    When audited financial statements are presented in a client's document containing other information, the auditor should :

  • Q : Auditor for consolidated financial statements....
    Accounting Basics :

    Abbot, CPA, as principal auditor for consolidated financial statements, is using a qualified report of another auditor. Abbot does not consider the qualification material relative to the consolidate

  • Q : What is the amount of pension expense reported for 2013....
    Accounting Basics :

    The expected return on plan assets and the settlement rate were both 9%. what is the amount of pension expense reported for 2013 ?

  • Q : Audited financial statements....
    Accounting Basics :

    An auditor was unable to obtain audited financial statements or other evidence supporting an entity's investment in a large foreign subsidiary. Between which of the following reports should the audi

  • Q : What the amount of pension expense to be reported for 2013....
    Accounting Basics :

    Presented below is pension information related to Amazing Goods, Inc. for the year 2013.  Service cost $115,000

  • Q : What is taxable income for 2012....
    Accounting Basics :

    At the beginning of 2012, Annie, Inc. has a deferred tax asset of $7,500 and deferred tax liability of $10,500. In 2012, pretax financial income was $826,000 and the tax rate was 35%.

  • Q : What amount of gross profit would be recognized....
    Accounting Basics :

    Assuming Amazon Building, Inc. uses the completed contract method, what amount of gross profit would be recognized in 2013?

  • Q : Which is the best transfer price....
    Accounting Basics :

    Subsidiary X, located in a country with a 25% corporate income tax rate, and Subsidiary Y, located in a country with a 35% corporate income tax rate are part of a decentralized organization.

  • Q : Prepare the cash flows from the operating activities section....
    Accounting Basics :

    Menschken Company reported net income of $150,000 for the current year. Depreciation recorded on buildings and equipment amounted to $65,000 for the year. Balances of the current asset and current l

  • Q : Information concerning the entity means....
    Accounting Basics :

    When a question arises about an entity's continued existence, the auditor should consider factors tending to mitigate the significance of negative information concerning the entity's means for maint

  • Q : Prepare an income statement and retained earnings statement....
    Accounting Basics :

    Prepare an income statement and a retained earnings statement for Grove Company.Accounts Payable $ 18,500; Accounts Receivable 4,000

  • Q : Possible violations of laws or regulations....
    Accounting Basics :

    There are no violations or possible violations of laws or regulations whose effects should be considered for disclosure in the financial statements or as a basis for recording a loss contingency. Th

  • Q : Compute the current ratio....
    Accounting Basics :

    The partial financial statement items below were taken from the financial statements of Prone, Inc. This information can be used to correctly solve each of the ratios below. The information is in a

  • Q : Events occurring subsequent to the balance sheet....
    Accounting Basics :

    Which of the following material events occurring subsequent to the balance sheet date would require an adjustment to the financial statements before they could be issued?

  • Q : Furnish corroborating information regarding litigation....
    Accounting Basics :

    If a lawyer refuses to furnish corroborating information regarding litigation, claims, and assessments, the auditor should :

  • Q : How much of the 2007 dividend was distributed....
    Accounting Basics :

    Outstanding stock of the Bell Corporation included 20,000 shares of $5 par common stock and 10,000 shares of 6%, $10 par non-cumulative preferred stock. In 2006, Bell declared and paid dividends of

  • Q : Concerning third-party litigation....
    Accounting Basics :

    An auditor should obtain evidential matter relevant to all the following factors concerning third-party litigation against a client except the:

  • Q : Prepare the journal entry to record the issuance....
    Accounting Basics :

    Joyce Corporation issues 1,000, 10-year, 8%, $1,000 bonds dated January 1, 2007, at 102. prepare the journal entry to record the issuance ?

  • Q : Communicating internal control-related....
    Accounting Basics :

    When communicating internal control-related matters noted in an audit of a nonpublic company, an auditor's report issued on significant deficiencies should indicate that :

  • Q : What is the amount of depreciation for the first full year....
    Accounting Basics :

    Equipment with a cost of $192,000 has an estimated salvage value of $18,000 and an estimated life of 4 years or 12,000 hours. It is to be depreciated by the straight-line method. What is the amount

  • Q : Details of asset and liability accounts....
    Accounting Basics :

    Before applying substantive procedures to the details of asset and liability accounts at an interim date, the auditor should

  • Q : By what amount should the land account be increased....
    Accounting Basics :

    Bale Company buys land for $100,000 on 12/31/06. As of 3/31/07, the land has appreciated in value to $101,000. On 12/31/07, the land has an appraised value of $103,600. By what amount should the Lan

  • Q : Acceptable level of detection risk problem....
    Accounting Basics :

    As the acceptable level of detection risk increases, an auditor may change the : A. Assessed level of control risk from below the maximum to the maximum level. B. Assurance provided by tests of contro

  • Q : What is the amount of bad debt expense for that period....
    Accounting Basics :

    Using the percentage of receivables method for recording bad debts expense, estimated uncollectible accounts are $25,000 at the end of the year. If the balance of the Allowance for Doubtful Accounts

  • Q : Entity audit committee....
    Accounting Basics :

    Significant deficiencies are matters that come to an auditor's attention that should be communicated to an entity's audit committee because they represent :

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