User Account

All Pages

Identify the relevant substantive tests of details

Assignment Help Financial Accounting
Reference no: EM132961889

Question - Substantive testing of PPE - Pedestrian Ltd (Pedestrian) has been a client of Violet Partners for many years. You are an audit senior and have been assigned to the Pedestrian audit for the first time for the financial year end 30 June 2020. During March 2020 you are completing the risk assessment for PPE, which is one of Pedestrian's most material accounts. You are also aware that Pedestrian has made a large investment in a new manufacturing process to place itself in a more competitive position. Your analytical procedures indicate an increase in acquisitions of PPE.

Required -

(a) What is the key assertion at risk for the PPE additions? Why is it at risk? Explain.

(b) Identify the relevant substantive tests of details that would be appropriate to address the assertion at risk identified in (a).

(c) How would your answers to the previous questions change if the PPE additions have been manufactured in-house by Pedestrian's engineers and toolmakers, rather than purchased?

Reference no: EM132961889

Questions Cloud

Determine the margin of safety in units in april was : In April, actual sales were 20,000 units. The margin of safety in units in April was? The variable cost per unit for product is £6 and fixed costs are £54,000.
What is the actuarially fair insurance? premium : If the? risk-free interest rate is 6.0% and the expected return of the market is 10.5%?, what is the actuarially fair insurance? premium
Calculate angurugu earnings per share : Angurugu Wool Products has a tax rate is 30% and expected EBIT of $1.69 million Angurugu has $2.72 million of debt. Calculate Angurugu Earnings Per Share
Find what ef budgeted contribution per unit would : Budgeted variable costs, budgeted fixed costs and budgeted sales volume remains unchanged, EF's budgeted contribution per unit would
Identify the relevant substantive tests of details : Identify the relevant substantive tests of details that would be appropriate to address the assertion at risk identified in (a)
What is the average inventory held during the year : Sales this year are anticipated to be 208 units. Each order costs $74. What is the average inventory held during the year
Discuss five underlying reasons for a higher risk of audit : Discuss five underlying reasons for a higher risk of audit failure in the initial year of an audit compared to the audits in the subsequent years.
Prepare the entry to record the exchange : The oven's fair value is $23,400 and cash of $4,660 is paid by Wild horse in the exchange. Prepare the entry to record the exchange
What budgeted fixed costs in period six were : What Budgeted fixed costs in period six were? The budget for the year shows that in period 6 when the budgeted output was 5,220 units

Reviews

Write a Review

Financial Accounting Questions & Answers

  Prepare any necessary journal entries and disclosure notes

Eastern Chemical Company is involved with several situations that could lead to contingencies. Each is described below. During 2017, Eastern became involved in a tax dispute with the IRS. Eastern’s attorneys have indicated that they believe it is pro..

  Calculate the labour efficiency variance and payroll

Calculate the Labour efficiency variance and Payroll. Standard direct labour rate (4 hours per sweater) $08.00. Actual hours worked 9,200.

  1 the following are loziers 2010 and 2011 balance sheets

1. the following are loziers 2010 and 2011 balance sheets and income statements for the years ended december 31 2010

  Journalize the entry to record the payroll tax expense

The payroll register of Heritage Co. indicates $4,200 of social security withheld, Journalize the entry to record the payroll tax expense for the period

  Earnings per share on common stock plan

Folmar Co. is considering the following alternative financing plans: Plan 1 Plan 2 Issue 10% bonds (at face value) $1,040,000 $520,000 Issue preferred $1 stock, $10 par — 860,000 Issue common stock, $5 par 1,040,000 700,000 Income tax is estimated at..

  What is b-b receivable collection period

How many days, on average, does it take B&B Sports to pay an outstanding account payable? What is B&B's receivable collection period?

  What is the bid and asked quoting price

What is the bid and asked quoting price and provide the interpretation. Treasury Bond Quote by using 32nd to determine the bid and asked price.

  Calculate the number of cards Silicon needs to sell

Using equation method, calculate the number of cards Silicon needs to sell to reach breakeven? What would be Silicon's sales revenue at breakeven

  Should storey invest in the new equipment

Should Storey invest in the new equipment? Working capital investment required, $600,000. This amount will be released at the end of the project.

  Make appropriate general journal entries for consolidation

In relation to the intragroup transactions Make the appropriate general journal entries for the consolidation worksheet at 30 June 2020.

  Determine unadjusted rate of return based on average cost

Scarlett Painting Company is considering whether to purchase a new spray paint machine that costs $2,600. The machine is expected to save labor, increasing net income by $260 per year. The effective life of the machine is 15 years according to the ma..

  What is the amount of accounts written off during the year

You are given the following balances for the year 20x5: Allowance for doubtful accounts, beginning of year 47042 cr. What is the amount of accounts written off

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