What audit procedure was completed by each tickmark

Assignment Help Financial Management

Reference no: EM131999239

Strapp LLP is auditing the Year 5 financial statements of Carfagno Inc., a publicly traded company.

Part 1:

Select the appropriate file for the documentation listed below that was obtained by Strapp during the Year 5 audit. (Current File or Permanent File)

Documentation	File
10year lease contract for office building
Carfagno pension plan description
Year 5 working trial balance
Executive stock option agreements
Articles of Incorporation
Year 5 financial statements
Bank reconciliations
Minutes of the Board of Directors Meetings
Accounts receivable confirmations

Part 2:

Audit documentation must be provided to a third party, even without the permission of the client, in certain circumstances. Put a check mark in the box next to the circumstances in which Strapp could provide information from the Carfagno audit to a third party without Carfagno's permission.

Subpoenaed by a court

Requested by Carfagno's attorney

For investigation by the state board of accountancy

Requested by Carfagno's bank in support of a loan in excess of $1,000,000 Requested by Carfagno's shareholders

Requested by Strapp's attorneys if Strapp was sued by Carfagno

Part 3:

Below is a section of Carfagno's Furniture and Fixtures schedule. Furniture and Fixtures is depreciated by Carfagno using the straightline method over seven years. Marcus James, CPA, the senior auditor on the Carfagno engagement, used the tickmarks shown on the schedule to indicate the procedures that he performed during the audit.

Purchase Date	Description	Serial Number	Cost	Accumulated Depreciation	Net Book Value
7/1/Year 1	Conference room furniture	3457290	16,000 (±)	10,285 (8)	5,715 (p)
1/1/Year 3	Staff cubicles	4578902	28,500 (±)	12,214 (8)	16,286 (p)
1/1/Year 4	Executive office furniture	3290785	30,000 (±)	8,571 (8)	21,429 (p)
Total			74,500 (€)	31,070 (€)	43,430 (€) (®)

For each of the tickmarks shown in the schedule, identify the correct audit procedure from the dropdown menu in Column 2.

What audit procedure was completed by each tickmark?

Agreed amount to the subsidiary ledger, cross footed, footed, recalculated, traced and agreed to supporting invoice.

Reference no: EM131999239

Questions Cloud

Which is the better option the installment plan : A student has three semesters to complete before graduation, when they find out their student aid has run out.

Annual holding cost : Assuming the firm operates optimally, how many units should they purchase each time they place an order?

Develop an important workplace skill : Prepare a summary and analysis of their presentation topic - Develop an important workplace skill as well as an opportunity to prepare a particular area

How can you continue to trust controllers : How can you continue to trust controllers and the risk of human error as they continue to be over worked, under trained, and under paid?

What audit procedure was completed by each tickmark : Select the appropriate file for the documentation listed below that was obtained by Strapp during the Year 5 audit. (Current File or Permanent File)

Implementation of an effective hazard communication program : Discuss how cultural and language barriers can affect the implementation of an effective hazard communication program.

How does a company decide among common stock : How does a company decide among common stock, corporate bonds, and bank debt to raise needed capital?

How will your answer change if the payments : How will your answer change if the payments on the 4-year installment plan do not start for a full year?

Draw the activity on node network : 1. Draw the Activity on Node (AON) network. 2. Determine the expected completion time and variance for each activity.

User Account

All Pages