User Account

All Pages

Explain why the use of large dollar balances as the basis

Assignment Help Accounting Basics
Reference no: EM132816139

James Jones, CPA, is the auditor of Wycliffe Corporation (WC). Jones is considering the audit work to be performed in the accounts payable area for the current year engagement. After obtaining an understanding of WC's controls, Jones assessed control risk at the maximum.

  • Jones decided to confirm supplier balances and mailed confirmation requests to 40 of WC's 1000 suppliers. The selected suppliers were based on Jones's sample that was designed to select accounts with large dollar balances.

Required:

Problem a) Identify three situations when the auditors should use accounts payable confirmations

Problem b) Explain why the use of large dollar balances as the basis for selecting accounts payable for confirmation might not be the most effective approach for the audit of accounts payable.

Reference no: EM132816139

Questions Cloud

Create a schedule of cost of goods manufactured in good form : Create a schedule of cost of goods manufactured in good form. Raw materials inventory, beginning 30. Work in process inventory, beginning 50
How much is the realized gain on sale of the investment : Interest is payable annually every December 31. The bonds mature on December 31, 2020. How much is the realized gain on sale of the investment
Cash flow to stockholders for the year : If the company paid out $610,000 in cash dividends during 2018, what was the cash flow to stockholders for the year?
Discussion on what blockchain is : This week's discussion centers around the concept of Blockchain. There is still much confusion regarding what Blockchain is and what it is not.
Explain why the use of large dollar balances as the basis : Explain why the use of large dollar balances as the basis for selecting accounts payable for confirmation might not be the most effective approach for the audit
Determine the expected alpha of security : Using this data and the Fama-French model, determine the expected alpha of this security.
What is estimated per share value of sbux : You wish to determine the value of Starbucks' common stock (ticker symbol SBUX) using the dividend discount model approach. You collect the following data:
What is amount of borrowing costs that will be capitalized : IAS 23 - Borrowing Costs, What is the amount of borrowing costs that will be capitalized to the machine when it is received on December 31, 20x3?
How has the term hacking changed meaning over the years : With all the stories about millions and millions of bytes of personal data having been exposed, why is their still any faith at all in the Internet?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Compute the materials price variance

The company applies variable overhead on the basis of direct labor-hours. Compute the materials price variance. Compute the materials quantity variance

  A company wants to have 21000 at the end of a five-year

a company wants to have 21000 at the end of a five-year period by investing a single sum now. how much needs to be

  Compute the company free cash flow

The management of Whispering Winds Corp. is trying to decide whether it can increase its dividend. Compute the company's free cash flow

  Identify researchable question for the fact pattern

Come up with a fictitious fact pattern (accounting problem/business issue) to which you can apply the accounting research process.

  Question web-browser a non-public corporation is an

question web-browser a non-public corporation is an application service provider. web-browser gives web-based

  Holding periods

Cassie owns a Rembrandt painting she acquired on June 1, 2009 as an investment. She exchanges the painting on September 5, 2011, for a Picasso sculpture and marketable securities to be held as an investment. On what date does the sculpture's holdi..

  Compute the amount of phantom profit

Compute the amount of phantom profit that would result if the company used FIFO rather than LIFO. The company uses the periodic method.

  What is the american opportunity tax credit

Assuming Janie's parents have AGI of $170,000, what is the American Opportunity tax credit they can claim for Janie?

  Tamara corporation made sales of 65000 units at the rate of

tamara corporation made sales of 65000 units at the rate of 13 per unit in the year 2012. its direct material and

  Estimate the simple linear regression relationship

Recently, research efforts have focused on the problem of predicting a manufacturer's market share by using information on the quality of its product.

  What is the carrying amount of the mine property

The total cost of the five buildings was P1,500,000. Estimated residual value is P250,000. What is the carrying amount of the mine property

  Helena furnishings wants to sharply reduce its cash

helena furnishings wants to sharply reduce its cash conversion cyle. which of the following steps would reduce its cash

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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