Reference no: EM132736683
Question: Jonas Worth is the engagement partner for the financial report audit of Caufield Ltd for the year ended 31 December, 20X7. The following material events or transactions have come to Wood's attention before he is scheduled to issue his report on 28 February, 20X8.
a) On 3 January, 20X8, Caufield Ltd received a shipment of raw materials from korea. The materials had been ordered in October 20X7, and shipped FOB shipping point in November 20X7 (2.5 marks). (50 -80 w)
b) On 15 January, 20X8, the company settled and paid a personal injury claim of a former employee as the result of an accident that occurred in March 20X0. The company had not previously recorded a liability for the claim (2.5 marks). (50 -80W)
c) On 25 January, 20X8, the company agreed to purchase for cash the outstanding shares of La Trobe Electrical Ltd. The acquisition is likely to double the sales volume of Caufield Ltd (3 marks) (50 -80 W)
d) On 1 February, 20X8, a plant owned by Caufield Ltd was damaged by a flood, resulting in an uninsured loss of inventory (3 marks) (50 -80W)
Required: For each of the above events or transactions, discuss audit procedures that should have brought the item to the auditor's attention, and indicate the treatment required in the financial report. Give reasons for your decision.
|
What is a type of accounting information manipulation
: What is a type of accounting information manipulation. There are ways to show that the company is making more money than they truly are. Also where employees.
|
|
Prepare income statement and statement of cash flows
: Prepare income statement and statement of cash flows for Mack Company for Year 3 under the two alternative financing proposals
|
|
Explain the changes in the balance sheet accounts
: cash flows worksheet is to enter the data which explain the changes in the balance sheet accounts in the reconciling columns of the work sheet.
|
|
What are baseline security requirements
: What are baseline security requirements that should be applied to the design and implementation of applications, databases, systems,
|
|
Discuss audit procedures that should have brought the item
: Jonas Worth is the engagement partner for the financial report audit of Caufield Ltd for the year ended 31 December, 20X7. The following material events.
|
|
What would the unleveraged and leveraged EPSs look like
: The company currently has 600 shares, what would the unleveraged and leveraged EPSs look like if EBIT were only $1,200
|
|
What is alfonso gain on the sale of the stock
: FMV on the date of the gift is $52,000. Two years later, Alfonso sells all of the stock for $54,000. What is Alfonso's gain/(loss) on the sale of the stock?
|
|
Describing firewalls-host and intrusion prevention system
: Based on this course objectives of securing resources in a network and describing Firewalls and Host and Intrusion Prevention Systems,
|
|
Step approach to solve ethical problem
: Provide an example of how you could apply the 3-Step Approach to solve an ethical problem you are experiencing at work or have experienced at work
|