Q1. In Doc Sharing, there is an article by Douglas R. Carmichael, "Hocus-Pocus Accounting." Please read the article, then identify and discuss the issues related to revenue recognition. In your responses, give thought to what you have read in your e-book, lecture, and Becker material. Also, what types of tests would the auditor design to uncover some of these issues?
Q2. When assessing planned control risk for sales, the auditor is concerned about proper authorization at three key points. Please discuss each of these three points.
Q3. Please explore the Internet to locate a meaningful current event article discussing this week's TCOs that considers the many economic transactions in which you participate on a daily basis. You may purchase a cup of coffee at a coffee shop, pay your telephone bill, purchase stamps at the post office, or so forth. In many cases, the transaction is documented using a "point-of-sale" system.
Using the Internet, find the definition of a point-of-sale system and read about the controls that have been established by the University of Toronto related to these systems to answer the following question: What is a point-of-sale system?
Q4. Auditing standards require the confirmation of accounts receivable in normal circumstances. What are the three exceptions to this requirement?
Q5. Let's identify, explain, and justify effective funding strategies in the following areas:
Cash management
Investing excess funds
Obtaining debt financing
Obtaining equity financing
Q6. Welcome to Week 6. This week we will be discussing various effective funding strategies. Let's begin by discussing effective strategies for Cash Management. Sharing examples or your own experiences would be fantastic. In addition, what would be several funding strategies regarding investing excess funds? Surely there are other options than the passbook savings account.