Determine what account should client classify the apartment

Assignment Help Financial Accounting
Reference no: EM132734621

You are an auditor at a public accounting firm. You are conducting an audit for the financial year ending December 31, 2019. Your client has go public. This client is a property development company. Your client builds property in the form of apartment units, housing / real estate and also property investment products in the form of lots ready to build. In addition, this client also has a project development cooperation with its customers. The client is bound by a contract signed by both parties before a notary for the construction of a project with this customer. The project has not been completed 100%, however, the client says that the project has been completed 60% and the client acknowledges 60% of the development as revenue in the 2019 financial year.

Question:

Question 1: In your opinion, as an auditor, what account should the client classify the apartment and housing / real estate complex be? Explain your answer! (10%)

Question 2: What is the audit procedure that you will apply to ensure the recognition of revenue that is 60% of the project! (10%)

Question 3: What audit evidence will you examine and what are the related assertions?

Reference no: EM132734621

Questions Cloud

Calculate the initial growth rate of the population : A population of 1500 bacteria grows exponentially for three doubling periods, at a rate of 0.020 per hour, until the bacteria are killed with antibiotics.
Do think that recognize as sales revenue is correct and ehy : After several years of self-use, that heavy equipment is sold, which is in the fiscal year, Do think that recognize as sales revenue is correct?
Established surgeons in the practice : The established surgeons in the practice have a personal staff of one nurse and one patient coordinator,
Introduction of a new species of fish : Classify each situation as density-dependent or density-independent, and explain your reasoning.
Determine what account should client classify the apartment : You are an auditor at a public, In your opinion, as an auditor, what account should the client classify the apartment and housing / real estate complex be?
How unethical practices impact the law : This module's focus is on the Legal System, but in our examination of ethics, it's important to pay attention to how unethical practices impact the law.
Evaluate merit of primary vs. tertiary health services : Evaluate the merit of primary vs. tertiary health services related to a population's health in a country of your choice.
Evaluate the authors use of literature : For this Discussion, you will evaluate the purpose statements in assigned journal articles in your discipline and consider the alignment of theory, problem.
Explain why are long-lived assets and inventory assertion : Explain Why are the long-lived assets and inventory assertions of existence said to have inherent risk of material misstatement that is higher than

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd