Premium Essay

Audit Midterm

In: Business and Management

Submitted By amardr
Words 1354
Pages 6
Seminar in Auditing
Spring 2015
Name ________________________________________________________________

Answer the following questions (1-9) with a short answer – no more than a paragraph.

1. What was the significant of the McKesson & Robbins case?

It redefined some auditing standards. Prior to this case, auditors had no responsibility to verify inventory. As a result of the McKesson & Robbins case, it was determined that auditors should extend verification beyond “the books” to establish the actual existence of the assets and liabilities shown on the balance sheet. Confirmation of receivables and observation of physical inventory became mandatory audit procedures.

2. Briefly describe an American audit at the turn of the 19th to the 20th century.

Bookkeeping was only briefly reviewed while the balance sheet and verification of current assets/liabilities was the main focus. The audits at the turn of the 19th – 20th century were basically a certification of balance sheets to be used by bankers to determine the credit worthiness of applicants.

3. Discuss how and why a CPA firm might screen potential audit clients.

Before accepting new clients, the CPA firm should investigate the potential clients to determine acceptability (integrity, knowledge of client industry, other business risks). This can be done by: * Communication w/ predecessor auditor * Gathering info from local attorneys, banks, other businesses * Talk to clients, customers, vendors * Interview management/employees * Hire professional investigator

4. List and discuss management assertions related to an account balance.

* Existence – deals with whether assets, liabilities, and equity interest included in the balance sheet actually existed on the balance sheet date. * Completeness – addresses whether all accounts and amounts…...

Similar Documents

Premium Essay


... Fall 2013 Course Outline AP/ADMS 4552 3.0 Section A and B Information Systems Audit Term: Fall 2013 COURSE: AP/ADMS 4552 3.0 Sections A and B Information Systems Audit Schedule First day of class: Section A: Wednesday, September 11, 2013 11:30 AM – 2:30 PM, Location: HNE 030 Section B: Thursday, September 12, 2013 7:00 PM – 10:00 PM, Location: HNE 032 REQUIRED COURSE TEXT/READINGS: • Hall, James A., (2011), Information Technology Auditing, 3e, Mason: South-Western Cengage Learning (Referred to as “IT Audit Text” in the Readings List for each class) • Additional material as listed in the course outline. This includes articles referenced by links, readings from books that were required for prerequisite courses, cases and assignment details posted on our web site. • CICA Assurance Handbook, as available online from York University library, (referred to as “Handbook” in the Readings List for each class). Selected readings are from: [Note this book is available on reserve at the business library in the Schulich building if you do not have a copy.] • Arens, A., R. J. Elder, M. S. Beasley and I. B. Splettstoesser-Hogeterp. 2011. Auditing: The Art and Science of Assurance Engagements, Canadian 11th Edition, Pearson Prentice Hall: Toronto. (Referred to as “Audit Text” in the Readings List) References for the 12th Canadian edition of the Audit text (as an alternative to the 11th edition) will be provided separately as a......

Words: 3433 - Pages: 14

Premium Essay

Syllabus of 614

...basic foundation to facilitate further study for those who wish to take professional examinations such as the Certified Public Accounting Exam, and the Certified Internal Auditing Exam. IV. LEARNING OBJECTIVES This course is concerned with the technical and conceptual skills involved in an audit or examination of financial statements. You will learn about Auditing Standards and Principles involving planning of an audit, report wording for different engagements and situations, audit risk, and fraud consideration. Various engagement tasks will be introduced including the collection of audit evidence, the study and evaluation of internal control systems, the use of sampling, and documenting work performed on the engagement. Communication skills and analytical ability are strengthened by discussions and homework assignments. V. COURSE FORMAT There will be lecture and classroom discussion of auditing fundamentals. Assignments, readings and text materials will be considered in class as time permits. VI. EVALUATION Grades will be determined by a course average composed of Homework (14%), Quizzes (8%), Case Assignments (8%), Course participation (10%), Midterm Exam (30%), Final Exam (30%). Grades will be assigned as follows: A (92.5-100), A- (88.5-92.5), B+ (84.5-88.5), B (80-84.5), B- (77.5-80), C+ (74.5-77.5), C (70-74.5), F (Below 70). Students are expected to take all examinations at the regular time. A make-up examination will not be......

Words: 1259 - Pages: 6

Premium Essay


...Auditing and Assurance Services 14th edition Prentice-Hall, by Alvin A. Arens, Randal J. Elder, Mark Beasley Auditing Cases, 5th Edition, Beasley, Buckless, Glover, & Prawitt Note: Both of the above texts are published by Prentice Hall and are available as a bundled package. Prerequisites Computer Resources: Course Objectives: This course is designed to provide you with an understanding of professional auditing as practiced in the United States. Our discussions will focus on various aspects of the auditing profession. Successful completion of this course will provide you with a basic understanding of: * The auditor's consideration of financial statement cycles, * The evaluation of audit evidence, and * The issues related to completing an audit. Honor Code: Each student is expected to behave in a manner that brings honor to himself or herself, to the student body, and to the university community. In keeping with this expectation, students should be familiar with requirements of the Honor System Constitution. All class assignments are expected to be your original work. You are not permitted to use solutions manuals, solutions from prior semester materials, or another student’s materials in completing assignments. All university policies regarding cheating, plagiarism, falsification, nonattendance, and illnesses will be strictly applied and enforced in this course. The Honor Code will be strictly enforced in this course and all......

Words: 1594 - Pages: 7

Free Essay


...functions, procedures, control risks, and audit controls related to the general accounting cycles (general ledger, A/R, A/P, etc.). Secondly, the accounting cycles are related to computer information technologies. Contemporary and emerging information technologies are described. These technologies’ implications to accountancy are examined. Required Materials: • Turner & Weickgenannt. Accounting Information Systems: Controls and Processes – Wiley, 2009. [“Turner”] Schedule (tentative) Jan 25 Course Introduction Environment and Components of an AIS Introduction to Computer Technology Costs and Benefits of Computerization Documentation of Information Systems Flowcharting / Dataflow Diagrams Data Dictionary / Practice Drawing DFDs / The Systems Study / Computer System Alternatives Feasibility Study - Cost Benefit Analysis General Ledger Cycle / Revenue Cycle Expenditure Cycle / Resource Management Cycle IT Analysis Case Study – submission due date Midterm Examination (half of session) Deficiencies of 3GL (COBOL) architectures. Reading (Turner) 1 Feb 1 2 Feb 8 3 Feb 15 Feb 22 Feb 29 Mar 14 12 8 9&10 Mar 21 ACC 6625 - Palley – Spring 2012 Schedule (tentative) Mar 28 Apr 4 Apr 18 Apr 25 May 2 May 9 May 16 Database Management Systems Networks and Configurations / E-Commerce & E-Business Principles of Systems Analysis and Design Systems Security and Control Systems Security and Control – Sarbanes-Oxley Systems Audit and Testing; Systems......

Words: 308 - Pages: 2

Premium Essay


...Syllabus Spring 2012 Times and Location: TTh 8:00 – 9:30 (unique no. 02320 for ACC 358C and 02405 for ACC 380K.4) TTh 9:30 – 11:00 (unique no. 02325 for ACC 358C and 02410 for ACC 380K.4) TTh 12:30 – 2:00 (unique no. 02335 for ACC 358C and 02420 for ACC 380K.4) TTh 2:00 - 3:30 (unique no. 02340 for ACC 358C and 02425 for ACC 380K.4) The morning classes will be held in GSB 2.122. The afternoon classes will be held in GSB 5.153. Note: Please attend the section in which you are enrolled. However, if an emergency or unavoidable conflict on a particular day causes you to miss class, you may attend another section. Please do not abuse this privilege. Instructor Mark Bradshaw, M.P.A., M.B.A., J.D. Forensics Consultant to PwC Audit Professor in Residence, KPMG (2007) Office: GSB.5.124E; Ph.: 475-8852; E-mail: Office hours: Tuesdays and Thursdays from 11:15 – 12:15 and by appointment. I generally prefer e-mail as a means of contact outside of class and office hours. Teaching Assistants Star Yuan, traditional M.P.A. student E-mail: Ashley Ross, 5th year integrated M.P.A. student E-mail: Star and Ashley will assist with the grading of cases and exams. After graded cases are returned throughout the semester, they will schedule office hours to discuss such assignments. If you have grading or other questions concerning a case that has been returned,......

Words: 4401 - Pages: 18

Premium Essay


...Fall 2015 – Midterm Study Guide Point Break-Down Multiple choice * 120 points possible * 40 questions * ~1.5 minutes per question Short answer * 30 points possible * 6 questions * ~3 minutes per question Exam is worth a total of 150 points Chapter Break-Down Chapter 1 * 1 MC question * 3 total points (2% of the exam) Chapter 2 * 3 MC questions * 9 total points (6% of the exam) Chapter 3 * 5 MC questions * 1 Short answer question * 20 total points (~13% of the exam) Chapter 4 * 5 MC questions * 1Short answer question * 20 total points (~13% of the exam) Chapter 5 * 6 MC questions * 18 total points (12% of the exam) Chapter 6 * 5 MC questions * 1 Short answer question * 20 total points (~13% of the exam) Chapter 7 * 5 MC questions * 1 Short answer question * 20 total points (~13% of the exam) Chapter 8 * 6 MC questions * 1 Short answer question * 23 total points (~15% of the exam) Chapter 9 * 4 MC questions * 12 total points (8% of the exam) Current Events * 1 Short answer question * 5 total points (~3% of the exam) Important Topics (This is intended to help guide the focus of your review for the exam, however, it is not intended to be sufficiently detailed to the exact exam questions. Note: many of the topics listed are broad and cover a variety of more specific points. Thus, not everything can or will be tested.) Chapter 1 ...

Words: 440 - Pages: 2

Premium Essay


...may result in withdrawal from the course. The lab doors are kept locked at all the times. The instructor will open the doors at the appropriate time. So you are required to be in the lab on time. You have to be present on time for midterm and the final examinations. No one will be permitted to enter once the exam has commenced. As a Broward college lab safety policy you have to wear a closed shoe to be allowed to enter and work in the lab. One will not be allowed in the lab without it and that person will be considered absent for that day. Proper attire is advisable – you need to cover yourself properly to protect yourself. WITHDRAWAL POLICY: The last day to drop/withdraw class is October 30, 2014. Audit slips will not be signed that time. If you withdraw through the registrar’s office on or before the withdrawal date, you will receive a grade of “W”. If you simply stop coming to class and do not withdraw yourself through the proper channels, you will receive an “F”. To receive the audit designation – “XC” on your transcript, you MUST attend class regularly. Your instructor will not assign a W to any student once the withdrawal date has passed. Your instructor will not assign an XC to any student once the date to change from credit to audit status has passed. LAB OPERATIONS: When you come to each lab, you will find some supplies at your desk and some at various places around the room. After use, supplies are to be cleaned and returned to their......

Words: 1988 - Pages: 8

Premium Essay


...EXECUTIVE Biography *Assignment: Draft Corporate Background and Executive Biography WEEK 7 Oct. 17 Semester Review for Midterm Exam. Note: A “Polished News Release” will be part of the Midterm exam and account for 50 percent of the Midterm grade. You will have one week to write it. Topics will be distributed in class today -- press release will be submitted with in-class exam. WEEK 8 Oct. 24 IN-CLASS MIDTERM EXAM / Hand In “Polished Press Release”. WEEK 9 Oct. 31 FACT SHEET: Useful document for providing a reporter with additional content. Identifying Appropriate Reporters -- and Creating a PRESS LIST: -Editorial Calendars -Reporter Relationships -FIT Library Visit - “Cision” Media Directories Read: Chapter 7 - Media Lists WEEK 10 Nov.7 The “PITCH” LETTER - (Getting the Reporter to say YES!) *Assignment: Draft of your “Pitch Letter” to a specific reporter WEEK 11 Nov. 14 MEDIA ALERT - “Your Coverage is Invited” The FACT SHEET - Providing additional facts! *Assignment: Draft FACT SHEET & MEDIA ALERT WEEK 12 Nov. 21 Crisis Communications: - Case Studies - Managing a Crisis: The Basics *Assignment: Read Chapter 16: “Crisis Communications” WEEK 13 Dec. 5 The Communication Audit + Measuring Results WEEK 14 Dec. 12 PRESS KIT DUE TODAY In-Class Pitching to “Top Reporters” WEEK 15 ......

Words: 916 - Pages: 4

Premium Essay

Acct 562 Week 4 Midterm Exam Answers

...ACCT 562 Week 4 Midterm Exam Answers ACCT 562 Week 4 Midterm Exam Answers Page: 1 2 1. Question : (TCO D) The review team should be aware of various management and operational techniques, which includes all of the following except: Mental Models Spirituality Greenfielding 2. Question : (TCO F) Manually altering entries in an organization‘s books in order to conceal fraud is called: Shrinkage Forced reconciliation Padding the books Instructor Explanation:Wells, Chapter 9 3. Question : (TCO F) During an interview, when an interviewee repeatedly fiddles with a pen or picks lint from her clothing, he/she is giving non¬verbal clues called: Signals Manipulators Exemplifiers Instructor Explanation:Wells, Chapter 15 4. Question : (TCO F) When the subject of an investigation has been accused of misconduct, establishing a morally acceptable rationalization might allow the accused to reconcile his actions with his conscience. Which of the following is not an example of an acceptable rationalization? The accused felt that he needed to get back at someone in the organization. The accused engaged in the misconduct for the benefit of others. The accused has personal demons that can’t be overcome. Instructor Explanation:Wells, Chapter 15 5. Question : (TCO F) In one of the case studies in the Wells textbook (page 49), Brian Lee, a top¬notch plastic surgeon, collected payments from...

Words: 1055 - Pages: 5

Premium Essay


...AC555 External Auditing Midterm Exam Page 1: Question: 1. The objective of the ordinary audit of financial statements is the expression of an opinion on:          | | the fairness of the financial statements | |    CORRECT |          | | the accuracy of the financial statements | |     |          | | the accuracy of the annual report | |     |          | | the balance sheet and income statement | |     |   2. The auditor's best defense when material misstatements are not uncovered is to have conducted the audit:          | | in accordance with auditing standards | |    CORRECT |          | | as effectively and as reasonably possible | |     |          | | in a timely manner | |     |          | | only after an adequate investigation of the management team | |     | | | | | | | | | | | 3. Which of the following statements is most correct regarding errors and fraud?          | | An error is unintentional, whereas fraud is intentional. | |    CORRECT |          | | Fraud occurs more often than errors in financial statements. | |     |          | | Errors are always fraud and fraud is always errors. | |     |          | | Auditors have more responsibility for finding fraud than errors. | |     |   4. Which of the following statements is true of a public company's financial statements?          | | Sarbanes-Oxley requires only the CEO to certify the financial statements. | |     |          | |...

Words: 1655 - Pages: 7

Premium Essay

Acc543 Mid Term/Final Study Guide

...ACC/543 Sample Questions for Midterm and Final Examinations The sample exam below is a representation of the Midterm and Final Examinations your students will take in Weeks Three and Six of this course. As in the sample exam below, the Midterm and Final Examinations will include questions that assess the course objectives. Although the sample exam contains one question per objective, the Midterm and Final Examinations will contain three questions per course objective. Refer to the questions in the sample exam below as a representation of the type of questions your students will be asked in the Midterm and Final Examinations. Refer your students to the weekly readings and content outlines for each week as study references for the final exam. The questions contained in the Sample Examination, Midterm and Final Examinations were selected from Operations Management for Competitive Advantage, Fundamental Financial & Managerial Accounting Concepts, and Business Law: Legal Environment, Online Commerce, Business Ethics, and International Issues. Week One: Managerial Accounting and Capital Budgeting Objective: Determine the present value of future cash flows from an investment. 1. Torvald's Hardware paid a contractor $45,000 to expand the store. The investment increased annual cash inflows by $8,000 per year six years. Torvald's has a desired rate of return of 10%. The net present value of this investment is which of the following? (round to the nearest dollar) A) ......

Words: 2448 - Pages: 10

Free Essay


...Midterm 2 Case 3.1 Q1 Government’s decision to deregulate the once highly regulated industry, Enron no longer need to charge regualted price for its gas to customers. The force of supply and demand dictated the price, therefore Enron has higher risk of material misstatement compare to before. The deregulation helped Enron expanded into natural gas trading and financing. And for the first time Enron was allowed to use mark to market accounting for its nature gas trading business. Enron expanded beyond its natural gas business into other markets such as electricity and commodity markets. And it also undertook international projects outside the United States. Such aggressive expansion could elevate the risk of material misstatement. Case 3.2 Q2 The existence of related parties presents additional risks to an auditor because an auditor has to obtain an understanding of management responsibility not just the entity itself by also the related party, the purpose of the related party and the relationship of each related party to the whole entity. It’s more area for an auditor to cover, which means greater audit risk. I think auditor should pay special attention to related party transactions because related parties are under the same management and it is prone to fraud and misstatement. For example one of ALO primary activity was to buy BFO’s overvalue investment so BFA could avoid recording losses. If ALO were an independent company, such transactions would not......

Words: 376 - Pages: 2

Premium Essay


...and what they symbolise | Corporate Culture and Ethics | Review Questions: What is corporate culture and why is it important to Business Ethics?Group presentation and submission | Chapter 7; | 8 | Midterm | Lessons/Chapters 1-6 | 24 June 2015 | | 9 | Developing an Effective Ethics Program * Organizational misconduct * The need and components of ethics program * Compliance versus value orientation | Why do we develop an effective ethics program | Review Questions: Identify 3 most common forms of organizational misconduct at work place and what does the organization do to stop/reduce these misconducts? Individual presentation and submission | Chapter 8 | 10 | Managing and Controlling Ethics * The need for ethics audit * The auditing process | Ethics audit and its process | Individual presentation on organizational misconduct | Chapter 9, Internet | 11 | Managing and Controlling Ethics * Ethics auditing and strategic importance | Ethics audit and importance at strategic level | Does UCSI have the Ethics Audit? Refer to pp 256 Main Text – Group presentation and submission | Chapter 9 | 12 | Ethical Decision Making- A Global Issue * Global culture, values and practices * Global ethical issues | Global Ethical Issues | Presentation – group on Ethics Audit of UCSI | Chapter 10, Internet | 13 | Ethical Leadership * Concepts of ethical leadership * Ethical leadership and organizational culture * Leader-follower relationship | The need for......

Words: 990 - Pages: 4

Premium Essay


...09/05/2016 Welcome! Welcome! • Intermediate Financial Accounting (ACCT 3200) • M-W-F 2:30-4:20 in AE 208 • Important Dates – – – – – Intermediate Financial Accounting Friday May 13, 2016 – First Midterm (25% of grade) Monday May 23, 2016 – No class Friday May 27, 2016 – final date to withdraw Friday June 3, 2016 – Second Midterm (25% of grade) Friday June 17, 2016 – Final Exam (1:30-4:30) (45% of grade) • Quizzes will be announced the class prior Copyright © John Wiley & Sons Canada, Ltd. 1 Copyright © John Wiley & Sons Canada, Ltd. Welcome! Welcome! A little about me… 2 A little about YOU!… Copyright © John Wiley & Sons Canada, Ltd. 3 Copyright © John Wiley & Sons Canada, Ltd. 4 1 09/05/2016 INTERMEDIATE ACCOUNTING How to be successful in this class TENTH CANADIAN EDITION Kieso • Weygandt • Warfield • Young • Wiecek • McConomy • This is a summer session class = quick • This is a 3rd year class = challenging – Quick + challenging = be organized • Do the assigned homework (min. 1:1) • Read the chapter beforehand • Come to class CHAPTER 1 The Canadian Financial Reporting Environment • Exams will have – Multiple choice & matching questions – Short answer questions – Problems – mini cases Prepared by: Dragan Stojanovic, CA 5 Copyright © John Wiley & Sons Canada, Ltd. As edited by Jeff Kent, CPA,CA M.B.A. The Canadian Financial Reporting Environment CHAPTER 1 The...

Words: 2123 - Pages: 9

Premium Essay


... | | |Objective: |To provide students with a basic understanding of the nature and objectives of an audit and general auditing procedures and | | | |practice. | | | | | | |Learning Outcome: |Upon completion of this unit, a student should be able to: | | | |justify the nature, purpose and scope of auditing and internal review, including the role of external auditor and its regulatory| | | |framework, and the role of internal audit on the control framework in an organisation | | | | | | | |identify risks, describe the procedures undertaken in the planning process, plan work to meet the objective of the audit or | | | |review assignment and draft the content of plan ...

Words: 2089 - Pages: 9