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How is the write-off of a bad debt handled on the tax return? How must the debtor handle the forgiveness of the debt? Why?
Is the evaluation and control process appropriate for a corporation that emphasizes creativity? Are control and creativity compatible?
Please read the case provided in the link below and then answer the four questions at the end of the case.
What do you see as the primary cause of the auditing problems that led to the Enron scandal? Who do you believe carries the moral responsibility for those failures? Why?
What items are usually included in an effective engagement letter? Have you seen an engagement letter at your workplace or familiar with one and how are you involved in the process? Please find an engagement letter and comment on it
There are five types of audit tests. List one audit test and describe at least two types of evidence that may be obtained from this test.?
Prepare a two-page audit critique, and include each of the following: Briefly describe the purpose of the audit (identify the type of audit). Briefly describe the method(s) used during the audit
The profession has argued for decades about the advisability of mandatory reporting on internal control by public companies and by governmental entities. In the 1970s and 1980s,
Seven different types of evidence were discussed. The following questions concern the reliability (competence) of that evidence: Explain why confirmations are normally more reliable evidence than inquiries of the client.
What are the main concerns when analyzing a company's accounts receivable? What information other than the usually available financial statements, should you collect as part of your overall analysis?
Classify by type of audit evidence: (1) directly from outsiders, (2) indirectly from outsiders, (3) internal but validated externally, and (4) entirely internal.
Which of these two controls would cost less and prove more effective? Is there a different, more cost effective strategy we should consider?
What was the total amount of bad debts expense recognized during the year? Explain the term "net realizable value" as it relates the presentation of Accounts Receivable on the Balance Sheet.
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