Solutions for Chapter 8 Tools to Gather Audit Evidence Review Questions: 8-1. The three main tools the auditor might use in gathering and evaluating audit evidence are: • Audit sampling • Generalized Audit Software • Analytical procedures 8-2. Non-sampling risk is the risk that the auditor makes an improper assessment of inherent and/or control risk or did not apply audit procedures carefully. It can be minimized through: (1) Good hiring, training and supervision
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Client Understanding Paper ACC/541 Camellia Ellis September 1, 2014 Michael Meyer MEMO TO: Client FROM: Camellia Ellis, Staff I DATE: September 1, 2014 SUBJECT: Questions on requested information First and foremost, as a part of this organization, we would like to thank you for allowing this company the opportunity to work together with you on this project. Upon reviewing and analyzing the papers submitted by your company, I have been made aware of some additional information that is needed. As
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the File Date: August 1, 20XX From: Carie Ford Re: Summarize the tax issue/purpose of the memo. Background Provide a concise yet complete overview of facts/background. Issue State the issue(s) in question format. Authoritative Guidance List all authoritative guidance used to form conclusion and analysis. Refer to p. 718 in your tax textbook for citation reference guidance. Analysis Discuss each issue separately. Describe the logical, defendable, legal alternatives to each issue/problem
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the proper value recorded. This makes the financial statements more accurate. The procedures that can be done to test this are analytical procedures and recalculation. Analytical procedures can be preforming different ratios like gross profit calculations and inventory turnover ratio. Also, recalculation of the prices is a good way to test the valuation. There may be errors that can be found by recalculating that maybe the client missed on purpose or accident. Rights and obligations is the next
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from the case is also available for download. 3. You should try to think about how to get the answer for each question below before diving to the hints provided in the study guide. 4. The study guide is mainly numerical financial analysis and do not contain all of the analysis you need in order to solve the case. In other words, going through
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Table of Contents Executive Summary 2 Introduction 3 Issues 3 Budgeting 3 Analysis 3 Sales 3 Recommendations 4 Market Trends 4 Cutting Cost 4 Appendix 5 Budgeting 5 Actual Sales Numbers 5 Memo 6 Executive Summary Marlin Company has been in operation for only a few months. As a whole sale distributor that sells products at a cheaper price than stores it as an advantage when coming to bottom line pricing. Currently the company only sells three products which are; sinks
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restrictive attitude that has limited AMT’s room for expansion. In the body of the memo we will provide the following: a general analysis, financial statement analysis, a review of the 5 C’s of Credit, and an investigation of Biological Labs ability to back AMT. At the conclusion of this memo we will offer our opinion as to whether or not a line of credit should be extended to AMT Corporation. General Analysis 1. Market Characteristics The medical instrument industry features fast growth,
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Berry’s Bug Blasters Liquidity Ratios 2008 Current ratio = Current assets/Current liabilities = 1,836,770.12/306,805.71 = 5.97 (4.09 2007) Acid-test ratio = (Cash + Accounts receivable + Short-term investments)/Current liabilities = (818,440.68 + 812,395.13 + 0)/306,805.71 = 5.32 (3.01 2007) Receivables turnover = Net credit sales/Average net receivables = can’t be calculated since company doesn’t sell goods (net sales not provided in financial statements) Inventory turnover
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MEMO To: Mohamad Ali From: Bas van Hulsenbeek Concerning: critical analysis spin-out ------------------------------------------------- Date: October 20, 2014 Dear Mr Ali You have asked us, Hulsenbeek Strategic Issues Support, to prepare a memo providing a critical analysis of the current strategic and leadership challenges facing the spin-out of part of the business of Hewlett-Packard (“HP”) announced October 6th. This spin-out will result in two publicly traded companies:
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Tim Hortons Financial Statement Analysis Summative Table of Contents Introduction 3 Company Profile 5 C.E.O/Chairman Report Analysis 8 Financial Analysis 10 Comparative Analysis 10 Ratio Analysis 14 Stock Market Analysis 18 Report to Management 19 Memos 22 Introduction Canadians are known to love their hockey, maple syrup, poutine, and of course, Tim Hortons. Tim Hortons is a one-stop shop for fresh donuts
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