Reference no: EM131215707
The questions below generally follow the order of the topics as presented in the text in Chapters 1 and 2. However, you will need to read all chapters (1, 2, 25, 26) in order to get the complete picture of most of these topics as Chapters 25 and 26 and additional insight to topics found in Chapters 1 and 2 and contain original material addressed in later questions. Write a brief response, 30-90-words, for each question below.
Audits typically consist of three phases: Planning; Fieldwork; Reporting. Describe activities that accompany each phase. Distinguish between Assurance and Attestation Services.
Describe the following types of Audits: Operational Audits, Compliance Audits, Financial Statement Audits, Informational Technology Audits (may need to go outside the text to address this)
Discuss the following types of Auditors: Auditors Working for CPA Firms, Governmental Auditors (e.g. GAO, IRS, health inspectors), Internal Auditors
Identify the roles CPA firms play in society.
Briefly explain Sarbanes-Oxley (SOX) and the role the Securities and Exchange Commission (SEC) plays in regulating audits.
What is the role of the AICPA? The PCAOB? The Institute of Internal Auditors (IIA)?
Summarize the 10 components of Generally Accepted Auditing Standards (GAAS)
What are SAS, and for what are they used?
True or False – CPA firms are required to engage in quality control efforts of its audits? Why or Why not?
What is a Peer Review and how and when are they performed?
Why does government often have different auditing and accounting standards?
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Computer crime is committed for personal gain
: According to the chapter, which of these statements is most accurate? a) Almost all computer crime is committed for personal gain b) Very little computer crime is committed for personal gain c) Most computer crime is just as easily described as “embe..
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Internal control system should be safeguarding assets
: Three objectives of a company's internal control system should be safeguarding assets, checking the accuracy and reliability of accounting data, and promoting operational efficiency. A fourth objective of a company's internal control system should be..
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Component of a company internal control system
: The control environment is a component of a company's internal control system that:
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Agency relationship was created by classic beverage
: Build-It Construction Company contracts with Classic Beverage Corporation to build Classic Beverage’s corporate headquarters. Build-It Construction contracts with Dependable Tools & Materials Inc. for construction supplies but refuses to pick up the ..
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Distinguish between assurance and attestation services
: Audits typically consist of three phases: Planning; Fieldwork; Reporting. Describe activities that accompany each phase. Distinguish between Assurance and Attestation Services. What is a Peer Review and how and when are they performed? Why does gover..
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Compute the amount that would be reported on fancys books
: On January 1, 2014, Fancy Associates purchased 30 percent of the outstanding shares of stock of Ashley Corp. for $100,000 cash. The investment will be accounted for by the equity method. On that date, Ashley's net assets (book and fair value) were $2..
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Under the cost method and the equity method
: On January 1, 2014, Brown Corp. acquired 40% (10,000 shares) of Blue Company common stock for $1,000,000 as a long-term investment. Prepare the necessary journal entries for Brown’s investment in Blue under the cost method and the equity method.
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Corporate status but otherwise avoid this double taxation
: Fitness Workout, Inc., is a small business. Siblings Grady and Heidi, and nine other members of their family, own all of its stock. Currently, the firm’s income is taxed at the corporate level and, after being distributed to the family members, at th..
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Natural food is the surviving firm
: Natural Food Corporation proposes to combine with Organic Produce, Inc., and asks Natural Food shareholders to vote on the proposal. Phoebe, a Natural Food shareholder, votes against it, but is outvoted by the other shareholders. Is there an action t..
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