Internal auditors for a federal agency

Assignment Help Accounting Basics

Reference no: EM13151994

You were in the final stages of your audit of the financial statements of Scott Corporation for the year ended December 31, 20X0, when you were consulted by the corporation's president, who believes there is no point to your examining the 20X1 vpicjer regoster amd testing data in support of 20X0 entries. He stated that (1) bills pertaining to 20X0 that were received too late to be included in the December voucher register were recorded as of the year-end by the corporation by journal entry, (2) the internal auditors made tests after the year-end, and (3) he would furnish you with a letter representing that there were no unrecorded liabilities.

a) Assume that the client company, which handled some government contracts, had no internal auditors for a federal agency spent three weeks auditing the records and were just completing their work at this time. How would the independent auditors' unrecorded liability test be affected by the work of the auditors for a federal agency?

b) What sources in addition to the 20X1 voucher register should the independent auditors consider to locate possible unrecorded liabilities?

Reference no: EM13151994

Questions Cloud

Describing how electronegativity is related to bond dipole : Use the PhET to complete the sentences describing how electronegativity is related to bond dipole experienced by the molecule.

Evaluate and compare the vertical restraints : Why might you expect to see flat royalty payments in home-based franchises but revenue-based royalties in franchises that operate from commercial buildings?

Total business profit of the partnership : Which of the following is TRUE of the net business profit of the partnership?

How has the treatment affected the long-term quality : The theory of recombinant DNA technology was enhanced and used in scientific research and now has practical medical applications in Gene Therapy.

Internal auditors for a federal agency : Assume that the client company, which handled some government contracts, had no internal auditors for a federal agency spent three weeks auditing the records and were just completing their work at this time.

How much energy would be required : how much energy would be required to raise the temperature of 75.0 g of water from 25 c to 75 c

Projects annual operating cash flows : If the firms tax rate is 34% what is the projects estimated net operating profit after taxes? What is the projects annual operating cash flows?

Define what is the power output of the turbine : What is the power output of the turbine? H1= 1322.6 Btu/lbm v1=3.058 (ft)^3/lbm H2= 1148.6 Btu/lbm v2=78.14 (ft)^3/lbm

Fifo rarely encountered in process costing : A reason why "pure" FIFO is rarely encountered in process costing is that:

User Account

All Pages