ACCT 555 ENTIRE COURSE

ACCT 555 ENTIRE COURSE | Devry University 

ACCT 555 Week 2 Homework Assignment

4-18 (Objective 4-6) The following questions concern independence and theCode of Professional Conduct or GAAS. Choose the best response.

1. What is the meaning of the generally accepted auditing standard that requires the auditor be independent?

4-19 (Objective 4-7) The following questions concern possible violations of the AICPA Code of Professional Conduct. Choose the best response.

1. In which one of the following situations would a CPA be in violation of the AICPA Code of Professional Conduct in determining the audit fee?

4-20 (Objectives 4-5, 4-6) The following situations involve the provision of nonaudit services. Indicate whether providing the service is a violation of AICPA rules or SEC rules including Sarbanes–Oxley requirements on independence. Explain your answer as necessary.

a.Providing bookkeeping services to a public company. The services were preapproved by the audit committee of the company.

4-21 (Objectives 4-6, 4-7) Each of the following situations involves a possible violation of the AICPA’s Code of Professional Conduct. For each situation, state the applicable section of the rules of conduct and whether it is a violation.

4-22 (Objectives 4-6, 4-7) Each of the following situations involves possible violations of the AICPA’s Code of Professional Conduct. For each situation, state whether it is a violation of theCode. In those cases in which it is a violation, explain the nature of the violation and the rationale for the existing rule.

5-17 (Objective 5-6) The following questions deal with liability under the 1933 and 1934 securities acts. Choose the best response.

5-19 (Objectives 5-4, 5-5) Lauren Yost & Co., a medium-sized CPA firm, was engaged to audit Stuart Supply Company. Several staff were involved in the audit, all of whom had attended the firm’s in-house training program on effective auditing methods. Throughout the audit, Yost spent most of her time in the field planning the audit, supervising the staff, and reviewing their work.

5-21 (Objectives 5-3, 5-5) Doyle and Jensen, CPAs, audited the accounts of Regal Jewelry, Inc., a corporation that imports and deals in fine jewelry. Upon completion of the audit, the auditors supplied Regal Jewelry with 20 copies of the audited financial statements. The firm knew in a general way that Regal Jewelry wanted that number of copies of the auditor’s report to furnish to banks and other potential lenders.

5-26 (Objective 5-5) Sarah Robertson, CPA, had been the auditor of Majestic Co. for several years. As she and her staff prepared for the audit for the year ended December 31, 2010, Herb Majestic told her that he needed a large bank loan to “tide him over” until sales picked up as expected in late 2011.

11-19 (Objective 11-7) You have identified a suspected fraud involving the company’s controller. What must you do in response to this discovery? How might this discovery affect your report on internal control when auditing a public company?

11-20 (Objectives 11-2, 11-3) The following questions address fraud risk factors and the assessment of fraud risk.

11-23 (Objective 11-2) During audit planning, an auditor obtained the following information:

ACCT 555 Week 3 Homework Assignment

Week 3 Homework

6-19 (Objective 6-1) The following questions concern the reasons auditors do audits. Choose the best response.

1. Which of the following best describes the reason why an independent auditor reports on financial statements?

1. Because of the risk of material misstatement, an audit should be planned and performed with an attitude of

1. The major reason an independent auditor gathers audit evidence is to

6-20 (Objective 6-3) The following questions deal with errors and fraud. Choose the best response.

1. An independent auditor has the responsibility to design the audit to provide reasonable assurance of detecting errors and fraud that might have a material effect on the financial statements. Which of the following, if material, is a fraud as defined in auditing standards?

1. What assurance does the auditor provide that errors, fraud, and direct-effect illegal acts that are material to the financial statements will be detected?

6-27 (Objectives 6-6, 6-7) The following are specific transaction-related audit objectives applied to the audit of cash disbursement transactions (a through f), management assertions about classes of transactions (1 through 5), and general transaction-related audit objectives (6 through 11).

Specific Transaction-Related Audit Objective

1. Recorded cash disbursement transactions are for the amount of goods or services received and are correctly recorded.

7-25 (Objectives 7-3, 7-4) The following questions concern persuasiveness of evidence. Choose the best response.

1. Which of the following types of documentary evidence should the auditor consider to be the most reliable?

1. Which of the following statements concerning audit evidence is true?

1. Audit evidence can come in different forms with different degrees of persuasiveness. Which of the following is the least persuasive type of evidence?

1. Which of the following presumptions is correct about the reliability of audit evidence?

7-26 (Objectives 7-5, 7-6) The following questions concern audit documentation. Choose the best response.

1. Which of the following is not a primary purpose of audit documentation?

1. During an audit engagement, pertinent data are compiled and included in the audit files. The audit files primarily are considered to be

1. Although the quantity, type, and content of audit documentation will vary with the circumstances, audit documentation generally will include the

1. The permanent file of an auditor’s working papers most likely would include copies of the

7-27 (Objective 7-4) The following are examples of documentation typically obtained by auditors:

7-28 (Objective 7-4) The following are examples of audit procedures:

8-25 (Objectives 8-1, 8-3) The following questions concern the planning of the engagement. Select the best response.

1. Which of the following is an effective audit planning procedure that helps prevent misunderstandings and inefficient use of audit personnel?

8-28 (Objectives 8-2, 8-3, 8-4, 8-5) The following are various activities an auditor does during audit planning.

ACCT 555 Week 4 Homework Assignment

ACCT 555 Week 5 Assignment Fraud in the News

Week 5 Fraud in the News

Audit Finds Fraud in 13% of Detroit City Worker Jobless Claims

ACCT 555 Week 5 Homework Assignment

Chapter 12, pages 390–397: Problems 12-17, 12-18, and 12-27

Chapter 13, pages 429–430: Problems 13-22, 13-23, and 13-24

ACCT 555 Week 6 Homework Assignment

ACCT 555 Week 7 Course Project Smackey Dog Foods Inc

ACCT 555 Week 7 Homework Assignment

20-17 (Objective 20-3) The following questions concern internal controls in the payroll and personnel cycle. Choose the best response.

1. A factory foreman at Steblecki Corporation discharged an hourly worker but did not notify the human resources department. The foreman then forged the worker’s signature on time cards and work tickets and, when giving out the checks, diverted the payroll checks drawn from the discharged worker to his own use. The most effective procedure for preventing this activity is to

20-20 (Objectives 20-2, 20-3) Following are some of the tests of controls and substantive tests of transactions procedures often performed in the payroll and personnel cycle. (Each procedure is to be done on a sample basis.)

21-17 (Objective 21-1) The following questions concern internal controls in the inventory and warehousing cycle. Choose the best response.

21-18 (Objectives 21-1, 21-3) The following questions concern testing the client’s internal controls for inventory and warehousing. Choose the best response

21-19 (Objectives 21-1, 21-4, 21-5, 21-6) The following questions deal with tests of details of balances and analytical procedures for inventory. Choose the best response

21-20 (Objectives 21-1, 21-3, 21-5, 21-6, 21-7) Items 1 through 8 are selected questions typically found in questionnaires used by auditors to obtain an understanding of internal control in the inventory and warehousing cycle. In using the questionnaire for a client, a “yes” response to a question indicates a possible internal control, whereas a “no” indicates a potential deficiency.

24-22 (Objective 24-2) The following questions deal with contingent liabilities. Choose the best response.

24-23 (Objectives 24-5, 24-7) The following questions concern communications between management, those charged with governance, and the auditor. Choose the best response.

24-27 (Objective 24-2) In an audit of the Marco Corporation as of December 31, 2011, the following situations exist. No entries have been made in the accounting records in relation to these items.

24-28 (Objective 24-3) In analyzing legal expense for the Boastman Bottle Company, Mary Little, CPA, observes that the company has paid legal fees to three different law firms during the current year. In accordance with her CPA firm’s normal operating practice, Little requests standard attorney letters as of the balance sheet date from each of the three law firms.

ACCT 555 Week 7 Quiz

ACCT 555 Week 7 You Decide Questions and Answers

Questions:

Q1: Discuss how the SEC has influence (if any) over the audit of Smackey Dog Foods, Inc.

Q2: Discuss the essential activities involved in the initial planning of an audit. How do these all specifically to the Smackey Dog Food client?

Q3: Discuss the 4 stages of the audit and the major activities performed by the auditor in each phase. Give an example of how each of these specifically applies to the Smackey Dog Food, Inc audit. For instance, examine the apparent internal control weaknesses and possible negative outcome of each

Q4: Describe Keller CPAs’ responsibilities related to communications regarding internal control matters. What internal controls issues do you identify?

Q5: You decide that you will address Smackey Dog Food, Inc.’s accounts receivables through confirmations. Discuss the various types of confirmations and what forms you will implement and why

Q6: What are the major factors affecting sample size for confirming accounts receivable?

Q7: A major issue in verifying the ending balance in property, plant and equipment is the possibility of legal encumbrances. Discuss what specific concern do you have. Describe the procedures your firm will perform to obtain evidence about existing legal encumbrances.

Q8: The client wants to know if you will be present at the year-end inventory. What is your decision and why? What role or actions will you take at the inventory if you decide to attend the inventory. Why?

Q9: Considering the general six functions that make up the inventory and warehousing cycle for Smackey Dog Foods, Inc., identify the related documents and/or records that would be used. From your analysis of the internal controls related to the inventory and warehousing cycle of Smackey Dog Foods, Inc., what internal control weaknesses exist?

Q10: Discuss if Keller CPAs or its auditors are breaching any Professional Rules of Conduct and why or why not?

Q11: Discuss the CPA firm’s legal liability concerns for this audit if they make a material unintentional or intentional mistake. Include any other legal liability concerns regarding possible Professional Rule violations

ACCT 555 Worksheet for You Decide Course Project

Questions:

Q1: Discuss how the SEC has influence (if any) over the audit of Smackey Dog Foods, Inc.

Q2: Discuss the essential activities involved in the initial planning of an audit. How do these all specifically to the Smackey Dog Food client?

Q3: Discuss the 4 stages of the audit and the major activities performed by the auditor in each phase. Give an example of how each of these specifically applies to the Smackey Dog Food, Inc audit. For instance, examine the apparent internal control weaknesses and possible negative outcome of each.

Q4: Describe Keller CPAs’ responsibilities related to communications regarding internal control matters. What internal controls issues do you identify?

Q5: You decide that you will address Smackey Dog Food, Inc.’s accounts receivables through confirmations. Discuss the various types of confirmations and what forms you will implement and why.

Q6: What are the major factors affecting sample size for confirming accounts receivable?

Q7: A major issue in verifying the ending balance in property, plant and equipment is the possibility of legal encumbrances. Discuss what specific concern do you have. Describe the procedures your firm will perform to obtain evidence about existing legal encumbrances.

Q8: The client wants to know if you will be present at the year-end inventory. What is your decision and why? What role or actions will you take at the inventory if you decide to attend the inventory. Why?

Q9:Considering the general six functions that make up the inventory and warehousing cycle for Smackey Dog Foods, Inc., identify the related documents and/or records that would be used. From your analysis of the internal controls related to the inventory and warehousing cycle of Smackey Dog Foods, Inc., what internal control weaknesses exist?

Q10: Discuss if Keller CPAs or its auditors are breaching any Professional Rules of Conduct and why or why not?

Q11: Discuss the CPA firm’s legal liability concerns for this audit if they make a material unintentional or intentional mistake. Include any other legal liability concerns regarding possible Professional Rule violations.