(Solution) 11.Which Of The Following Statement Best Describes The Understanding With Respect To Ownership And Custody Of Working Papers Prepared By An Auditor? | Snapessays.com


(Solution) 11.Which of the following statement best describes the understanding with respect to ownership and custody of working papers prepared by an auditor?


11.Which of the following statement best describes the understanding with respect to ownership and custody of working papers prepared by an auditor? a) The working papers may be obtained by third parties when they appear to be relevant to issues raised in litigation b) The safe custody of working papers is the responsibility of client, if kept at his premises c) The working papers must be retained by an audit firm for a period of 10 years d) Successor auditors may have access to working papers of the predecessor auditors. The approval of client is not required.

 

12.The current file of the auditor’s working papers, generally, should include­ a) a flowchart of the internal controls b) Organisation charts c) a copy of financial statements d) copies of bond and debentures

 

13.Knowledge of the entity’s business does not help the auditor to­ a) reduce inherent risk b) identify problem areas c) evaluate reasonableness of estimates d) evaluate appropriates of GAAP.

 

14.The main advantage of using statistical sampling techniques is that such techniques: a) mathematically measure risk b) eliminate the need for judgmental sampling c) defines the values of tolerable error d) all of the them.

 

 

15.Which of the following methods of sample selection is least suitable for extrapolating results to the population? a) Systematic sampling b) Random sampling c) Haphazard sampling d) None

 

16.Which of the following statements is correct? a) Lower the sampling risk greater the sample size b) Smaller the tolerable error, greater the sample size c) Lower the expected error, smaller the sample size d) All are correct

 

17.Which of the following features is most important for random­based selection? a) Sample should be drawn form population b) Every strata of population should be represented in the sample c) Every item in the population has an equal chance of being selected in the sample d) Items should be selected at ‘n’ th interval

 

18.Risk of under reliance is the risk that the sample selected to test controls___ a) Does not support the auditor’s planned assessed level of control risk when the true operating effectiveness of the control structure justifies such an assessment b) Supports the auditor’s planned assessed level of control risk when the actual position does not warrant such reliance c) Is not supported by adequate documents d) both (a) & (c) 19.Which of the following factors is (are) considered in determining the sample size for tests of control? a) Projected error b) Tolerable error c) Expected error d) Both (b) and (c) 20.Tolerable error, is the maximum monetary error that the auditor is prepared to accept in the population and still conclude that audit objective has been achieved, is directly related to a) Sample size b) Audit risk c) Materiality d) Expected error https://www.coursehero.com/tutors-problems/Business/8689575 8689575 COMPANY AUDITOR 1. Who is responsible for the appointment of statutory auditor of a limited company ? COMPANY AUDITOR 1. Who is responsible for the appointment of statutory auditor of a limited company ? a) Directors of the company b) Members of the company c) The Central Government d) All of the above 2. Which of the following sections deal with qualifications of the auditor ? a) Section 226 (1) and section 226(2) b) Section 224 (1) and section 224 (2) c) Section 226 (3) and section 226(4) d) Section 224(3) & Sec.224 3. Which of the following statement is not true? a) A partnership firm can be appointed as a statutory auditor of limited company b) Appointment can be made in the name of the firm c) Majority of the partners should be practicing in India d) All partners should be chartered accountants 4. As per the requirements of section 226(3) and 226(4) a person is disqualified from being appointed as a statutory auditor if he holds­ a) Equity shares or debentures of the company b) Equity shares carrying voting of the company c) Shares carrying voting rights of the company d) Security carrying voting rights of the company 5. The board of directors shall appoint first auditor of a company a) With in one month of completion of capital subscription state of the company b) With in one month of the promotion of the company c) With in one month of the commencement of the business of the company d) With in one month of incorporation of the company 6. The term of the auditor ship of first auditor would be from the date of appointment till__ a) the conclusion of statutory meeting b) the conclusion of first annual general meeting c) the conclusion of next annual general meeting d) the date of removal 7. In case the directions fail to appoint first auditor (s), the shareholders shall appoint them at…..by passing a resolution a) a general meeting b) first annual general meeting c) statutory meeting d) annual general meeting 8. Life Insurance Corporation of India holds twenty five percent of subscribed capital of XYZ Ltd. The appointment of statutory auditor in XYZ Ltd. Would be by__ a) ordinary resolution b) special resolution c) (a) or (b) d) none of the above 9. ICICI prudential, a life insurance company, holds thirty­two percent of subscribed share capital of Delta Ltd. The statutory auditor of Delta Ltd. would be appointed by__ a) ordinary resolution b) Special resolution c) either of the above d) none 10.Which of the following statement is not true regarding appointment of statutory auditor by the Central Government? a) Such powers have been conferred upon it by section 224(3) b) If a company fails to appoint an auditor at a general meeting c) If an auditor refuses to accept appointment, the powers of the Central Government can be exercised. d) None of the above https://www.coursehero.com/tutors-problems/Business/8689577 8689577 Zicklin School of Business Baruch College Homework #4 RES 3200 1. The information provided here applies to questions 1, 2, 3, 4, 5 and 6. Two years Finance Homework please provide solutions for the computational problems. (ex. pv :1234 n:1 i/y:4 fv:123 then pmt = ??)Zicklin School of Business Baruch College Homework #4 RES 3200 1. The information provided here applies to questions 1, 2, 3, 4, 5 and 6. Two years ago, you borrowed $485,000 using a 30-year &xed payment mortgage o/ering a 5% interest rate. Current mortgage rates are now 4.625%. If you pay o/ your existing mortgage by taking out a new 28-year YOURgage at the current rate, what is the amount saved each month in terms of the di/erence in monthly payments? 2. If the new loan requires that you pay 1.5 points and an additional $1,000 in closing costs, what is the total amount of money that you will need to pay at closing in order to re&nance your loan? 3. If you hold the new loan until its maturity, what is the return that you expect to receive by re&nancing? 4. If you are currently earning a 10% return on your investments, you should de&nitely re&- nance. (a) True. (b) False . 5. Suppose whether you decide to re&nance or not, that you expect to pay o/your mortgage in six years. What is the return that you expect to receive by re&nancing under this scenario? 6. Suppose you are currently earning a 10% return on your investments on your long term investments. Based on the information provided in the previous question, you should re&nance. (a) True. (b) False. 7. You are about to purchase an apartment for $1.5 million. With your upcoming bonus, you will be able to make a down payment of $500,000. Given your good credit history, the rest you will borrow in the form of a. .. (a) conventional loan. (b) jumbo loan. (c) sub-prime loan. (d) too-legit-to-quit loan. 8. You are going to meet with a mortgage broker about obtaining a mortgage. If your credit score is 590, you will most likely borrow the funds using a. .. (a) conventional loan. (b) jumbo loan. (c) sub-prime loan. (d) a too-big-to-fail loan. 1 https://www.coursehero.com/tutors-problems/Business/8689579 8689579 Prove using element method or give counter: For all sets U and all subsets P, Q, R of U, if P intersect Q = Q intersect R = P intersect R = empty set... Prove using element method or give counter: For all sets U and all subsets P, Q, R of U, if P intersect Q = Q intersect R = P intersect R = empty set then P intersect Q intersect R = empty set. https://www.coursehero.com/tutors-problems/Business/8689581 8689581 Truckee Boats Inc. Trans. # 1 OCT Date Account Titles and Explanation 1 Cash Common stock 2 OCT 3 OCT 1 No entry needed 1 Prepaid Insurance Cash 4... CHART OF ACCOUNTS Account Numbers Account Name 101 Cash 111 Accounts receivable 112 Allowance for doubtful accounts 120 Boat inventory 121 Boat accessory inventory 131 Supplies 132 Prepaid insurance 133 Prepaid rent 141 Store, office, and boat equipment 142 Accumulated depreciation 201 Accounts payable 202 Accrued salaries payable 203 Accrued interest payable 204 Unearned revenue 205 Cash dividends payable 206 Current maturities of long-term debt 207 Other accrued expenses payable 210 Long-term notes payable 301 Common stock (no par) 311 Retained earnings 312 Income summary 401 Boat sales revenue 402 Accessory sales revenue 403 Boat repair revenue 501 Cost of goods sold: Boat sales 502 Cost of goods sold: accessory sales 601 Salaries expense 602 Supplies expense 603 Insurance expense 604 Rent expense 605 Depreciation expense 606 Utilities expense 607 Advertising expense 608 Interest expense 609 Bad debt expense 610 611 Organization cost expense Transportation Expense Transactions for October 2012 1. Oct. 1 Joe, with the help and advice of his attorney, Jason Rutherfor, issued to himself 4,250 shares of Truckee Boats, Incorporated common stock (no par) at a price of $23.64 per share. Joe transferred $100,470 cash from his personal bank account and deposited it in a checking account in the name of Truckee Boats, Inc. 2. Oct. 1 Truckee Boats hired Henry at $7.25 per hour. Henry’s typical workweek will be 8 hours a day, 5 days per week. Joe and Henry are paid on the first of each month for the month just ended. 3. Oct. 1 Truckee Boats paid Far West Insurance Agency a one-year general property and liability insurance premium of $2,196. 4. Oct. 1 Truckee Boats paid $2,400 to Ace Property Management Group for three months’ rent (October, November, and December) on the sales office and boat lot. 5. Oct. 3 Truckee Boats wrote a $900 check to Jason Rutherford to pay for his assistance in issuing the common stock. The payment is considered a start-up cost. It should be recorded as organization cost and will be expensed immediately. 6. Oct. 4 Truckee Boats purchased boat moving equipment, office furniture, and boat repair machinery. Truckee Boats paid $6,880 in cash and signed a four-year, 9.6%, $20,000 installment note payable to First National Bank. Equal monthly principal and interest payments of $503.42 are due the 5th of each month, beginning November 5. (The note assumes a 360-day year and 30 days of interest charged for each full month. Months with 31 days accrue only 30 days of interest, but so does February). 7. Oct. 6 Truckee Boats purchased, at a cost of $11,500, a Fast Glass model Swellcraft ski boat for resale. Transportation cost from the Swellcraft factory to Truckee Boats was $550, which Truckee paid in cash. Truckee uses a perpetual inventory system for both boats and accessories. Payment terms to Swellcraft are net 60 days or within two days of the sale of the boat. 8. Oct. 6 Truckee Boats purchased on account a variety of accessory merchandise at a cost of $1,330 from Miller Ski Supplies. Freight was paid by Miller. Terms are net 30 days. 9. Oct. 7 Truckee Boats purchased a PowerSki Jetboard communication helmet kit from Craig’s List for $900. This package came with a Large Helment + Handset Inc. charger (retail $540), Motorsport Noise Isolator Headset (retail $187), Handset Battery (retail $37), Helmet Charger (retail $37), Desktop Charger Inc. power Adaptor (retail 64.50) and a Headset Waterproof bag (retail $58). Truckee paid the full amount in cash. 10. Oct. 9 John Phillips, a local ski enthusiast, provided Truckee Boats with its first sale when he bought a $490 slalom ski for cash. The ski had been included in the October 6 purchase and had cost Truckee $350. 11. Oct. 10 Albert Snell, another skier, brought his Manvader ski boat into be “summarized”. Henry changed both the engine and out drive oil, drained the water from the engine, replaced the spark plugs, and tuned the engine. Albert, a long time friend of Joe, agreed to pay the $250 invoice within Truckee Boats’ customary 30-day trade terms. 12. Oct. 12 Sold Frank Featherstone a dry suit with a $410 price. After checking his credit, he was allowed the 30-day trade terms. The dry suit also was included in the October 6 purchase and had cost $225. 13. Oct. 12 Truckee Boats purchased additional accessory merchandise from Fisherman’s Warehouse at a cost of $860. Truckee agreed to the 15-day payment terms from Fisherman’s and paid $40 cash to a tracking firm for transportation. 14. Oct. 13 Truckee Boats paid Admirable Advertising Agency $180 for a full page newspaper advertisement to be published in the Saturday, October 17 edition of the Las Vegas Gazette. 15. Oct. 14 After inspecting the merchandise from Fisherman’s Warehouse on October 12, Joe noticed that part of the merchandise was damaged. Truckee Boats returned the damaged merchandise, which had cost $130, and received a debit memorandum from Fisherman’s Warehouse. 16. Oct. 15 Art Jensen, a new customer, purchased fishing gear at a price of $335, paying cash. The merchandise was included in the October 12 purchase at a cost of $222. 17. Oct. 16 Joe was hopeful that his upcoming newspaper advertisement would bring in boat customers, so he purchased a 15-foot, Swellcraft fishing boat with a 25-housepower outboard motor. Truckee Boats received an invoice for $7,800 from Swellcraft and paid $310 cash for transportation. 18. Oct. 17 Truckee Boats’ advertisement in the morning paper paid off when Lance Layitover signed a sales contract to buy the Fast Glass Swellcraft ski boat for an “out-the-door” price of $18,999. 19. Oct 18 Truckee Boats had a booth in the Nevada State Boat Show to be held Sunday, October 21, paying the organizers of the event $300. 20. Oct. 19 Lance delivered the bank’s check for $17,000 and his own for the balance of $1,999 to fulfill the sales contract signed on Oct. 17th (transaction #18). Truckee Boats delivered the Fast Glass Swellcraft ski boat to Lance. 21. Oct. 20 Truckee Boats paid Swellcraft the $11,500 it owed on its purchase of the Swellcraft ski boat. 22. Oct. 20 Henry finished repairs and maintenance jobs on several boats. Cash receipts for this work amounted to $1,755. 23. Oct. 22 Truckee Boats’ advertisement was so successful that he paid another $500 for an advertisement in the October 24 morning edition of the Gazette. 24. Oct. 23 Truckee Boats purchased another Fast Glass Swellcraft ski boat with some additional options that weren’t included in the one he sold. The invoice cost was $12,100, which he agreed to pay on the same terms as his first purchase. Transportation cost, which Truckee Boats paid in cash, was $515. 25. Oct. 24 Ski accessory sales for cash totaled $704 for the day. The cost of these sales was $425. 26. Oct. 25 Frank Hammons, an avid skier, purchased a slalom ski from the manufacturer’s catalogue. He paid the entire $580 price and the ski was ordered because it was not in stock. 27. Oct. 25 Truckee Boats wrote a $730 check to pay Fisherman’s Warehouse for its October 12 purchase. 28. Oct. 26 Accessories costing $545 were sold to Vivian Ellis for a price of $770. Joe’s check of her credit qualified her for 30-day credit terms. 29. Oct. 26 Additional accessory merchandise costing $827 was purchased from Tackle and Line Shop. Shipping costs were paid for in cash ($23) by Truckee Boats. Payment terms are 30 days. 30. Oct. 26 James Murphy, a long-time associate of Joe Truckee, had major repairs to his boat performed during the last week of October. Henry finished the repairs on this date and Murphy was billed $2,329. Payment from James is due in 30 days. 31. Oct 26 Truckee Boats agreed to be a sponsor for the Health & Fitness Expo at the 2014 Rock ’n’ Roll Vegas Marathon Series held November 14th and 15th. The sponsorship will cost $450 which Truckee will pay in cash. 32. Oct. 27 Joe and his wife, Martha, who is the Vice-president of Truckee Boats, constitute the Board of Directors. They met and declared a $.30 per share cash dividend, to be paid on November 15, 2012. Adjusting Entries: additional information as of October 31, 2012 1. Joe was very conscientious in checking his customers’ credit history. However, while at the Nevada State Boat Show, he learned that it is customary within the pleasure boating industry for retail boat sales to suffer bad debt losses equal to 5% of credit sales. Joe decides that it is prudent to use the 5% industry-wide standard until he has more experience with his own business and customers. Round estimates to the nearest dollar. 2. As a control measure, Joe counts his inventory of skiing and fishing accessories at October 31, 2012. He determines that the cost of this merchandise on hand is $1,140. 3. Joe estimates that his office furniture and boat related equipment will last eight years with no salvage. Fixed assets purchased in the first half of the month are depreciated for the entire month, while fixed assets purchased in the last half of the month are not depreciated until the second month. The company uses the straight-line method. Depreciation is rounded to the nearest dollar. 4. Henry worked 20 days during October and did not work any overtime. Joe gets a monthly salary of $3,000. 5. On November 4, Trucker Boats received a $357 invoice from Desert Gas and Electric Company for utilities consumed during October. ? Required: All numbers should be rounded to whole dollars. Part 3 8. Journalize and post the closing entries for October 2012. 9. Prepare post-closing trial balance. 10. Prepare the following statements: a. Multiple-step income statement for the month ended October 31, 2012. b. Statement of Retained Earnings dated October 31, 2012 c. Classified balance sheet dated October 31, 2012. I need part 3 to be done On the Excel that I attachedTruckee Boats Inc. GJ Trans. # Date Account Titles and Explanation Ref. Debit Credit 1 OCT 1 Cash 101 $100,470 Common stock 301 $100,470 2 OCT 1 No entry needed 3 OCT 1 Prepaid Insurance 132 $2,196 Cash 101 $2,196 4 OCT 1 Prepaid Rent 133 $2,400 Cash 101 $2,400 5 OCT 3 Organization Cost Expense 610 $900 Cash 101 $900 6 OCT 4 Store, office, and boat equipment 141 $26,880 Cash 101 $6,880 Long-term notes payable 210 $20,000 7 OCT 6 Boat inventory-Fast Glass 1 120 $12,050 Accounts payable 201 $11,500 Cash 101 $550 8 OCT 6 Boat accessory inventory 121 $1,330 Accounts payable 201 $1,330 9 OCT 7 Boat accessory inventory 121 $900 Cash 101 $900 10 OCT 9 Cost of goods sold: accessory sales 502 $350 Boat accessory inventory 121 $350 Cash 101 $490 Accessory sales revenue 402 $490 11 OCT 10 Accounts receivable 111 $250 Boat repair revenue 403 $250 12 OCT 12 Cost of goods sold: accessory sales 502 $225 Boat accessory inventory 121 $225 Accounts receivable 111 $410 Accessory sales revenue 402 $410 13 OCT 12 Boat accessory inventory 121 $900 Accounts payable 201 $860 Cash 101 $40 14 OCT 13 Advertising expense 607 $180 Cash 101 $180 15 OCT 14 Accounts payable 201 $130 Boat accessory inventory 121 $130 16 OCT 15 Cost of goods sold: accessory sales 502 $222 Boat accessory inventory 121 $222 Cash 101 $335 Accessory sales revenue 402 $335 17 OCT 16 Boat inventory-15-foot 120 $8,110 Accounts payable 201 $7,800 Cash 101 $310 18 OCT 17 No entry needed 19 OCT 18 Advertising expense 607 $300 Cash 101 $300 20 OCT 19 Cost of goods sold: Boat sales-Fast Glass 1 501 $12,050 Boat inventory 120 $12,050 Cash 101 $18,999 Boat sales revenue 401 $18,999 21 OCT 20 Accounts payable 201 $11,500 Cash 101 $11,500 22 OCT 20 Cash 101 $1,755 Boat repair revenue 403 $1,755 23 OCT 22 Advertising expense 607 $500 Cash 101 $500 24 OCT 23 Boat inventory-Fast Glass 2 120 $12,615 Accounts payable 201 $12,100 Cash 101 $515 25 OCT 24 Cost of goods sold: accessory sales 502 $425 Boat accessory inventory 121 $425 Cash 101 $704 Accessory sales revenue 402 $704 26 OCT 25 Cash 101 $580 Unearned revenue 204 $580 27 OCT Accounts payable 201 $730 Cash 101 $730 28 OCT 26 Cost of goods sold: accessory sales 502 $545 Boat accessory inventory 121 $545 Accounts receivable 111 $770 Accessory sales revenue 402 $770 29 OCT 26 Boat accessory inventory 121 $850 Accounts payable 201 $827 Cash 101 $23 30 OCT 26 Accounts receivable 111 $2,329 Boat repair revenue 403 $2,329 31 OCT 26 No entry needed 32 OCT 27 Retained earnings 311 $1,275 Cash dividends payable 205 $1,275 $224,655 $224,655 https://www.coursehero.com/tutors-problems/Business/8689587 8689587 IDENTIFY THE MAJOR NEEDS AND MAJOR STAKEHOLDERS FOR COMPUTER NETWORKS AND NETWORK APPLICATIONS IDENTIFY THE MAJOR NEEDS AND MAJOR STAKEHOLDERS FOR COMPUTER NETWORKS AND NETWORK APPLICATIONS https://www.coursehero.com/tutors-problems/Business/8689589 8689589 Write a rewards program you believe would be especially effective at your current (or future) place of work. Provide evidence that supports that your... Write a rewards program you believe would be especially effective at your current (or future) place of work. Provide evidence that supports that your program would likely be effective (successful). Need a 1,000 word. https://www.coursehero.com/tutors-problems/Business/8689591 8689591 Course Goal/Objective Describe how concepts such as RISC, pipelining, cache memory, and virtual memory have evolved over the past 25 years to improve... Course Goal/Objective Describe how concepts such as RISC, pipelining, cache memory, and virtual memory have evolved over the past 25 years to improve system performance. Instructions In this six pages research paper, you will investigate the evolution of and current trends in improving system performance with concepts such as RISC, pipelining, cache memory, and virtual memory. In this paper you must, as part of your conclusion, explicitly state the concept or approach that seems most important to you and explain your selection. A minimum of two references is required for this paper. At least one article should be from a peer-reviewed journal. If you use Web sites other than the article databases provided by the UMUC Library in your research, be sure to evaluate the content you find there for authority, accuracy, coverage, and currency. https://www.coursehero.com/tutors-problems/Business/8689593 8689593 Suppose that there are two independent economic factors, F1 and F2. The risk-free rate is 9%, and all stocks have independent firm-specific... Suppose that there are two independent economic factors, F1 and F2. The risk-free rate is 9%, and all stocks have independent firm-specific components with a standard deviation of 49%. The following are well-diversified portfolios: Portfolio Beta on F1 Beta on F2 Expected Return A 2.4 2.6 27% B 3.0 –0.26 22% What is the expected return–beta relationship in this economy? E(rP) = 9 % + (?P1 × ? %) + (?P2 × ? %) https://www.coursehero.com/tutors-problems/Business/8689595 8689595 urope benefited from its location and its major physical features and Do you think the European Union could eventually lead to one large supra-Europe?... How has Europe benefited from its location and its major physical features and Do you think the European Union could eventually lead to one large supra-Europe? Be sure to, analyze whether or not fractionalization (such as the breakup of the Balkans and the dissolution of the Soviet Union) will continue to threaten the possibility of one large supra-Europe. https://www.coursehero.com/tutors-problems/Business/8689599 8689599 How to code class level or global variables (fields) that can be accessed by all the methods in a class. Lab Exercise 5.1 Instructions: Name the... Help. Please following instructions accordingly.How to code class level or global variables (fields) that can be accessed by all the methods in a class. Lab Exercise 5.1 Instructions: Name the program LE51.java In the program create 6 methods in addition to the main(). Code these methods after the main(). Refer to the sample output for details about the prompts and final output. Name and code the methods as follows: 1. setEmployee() : This method prompts for the employee's first and last name. The names are captured into separate variables through one prompt. Use next() for the first name and nextLine() for the last name. Then ask about the employee's status. NOTE: next() captures through the first space. 2. setCurrentSalary() : This method prompts for the employee's current annual salary. 3. setRaise(): This method prompts for the employee's annual raise as a percent. 4. calcNewSalary() : This method calculates the employee's new salary by adding 1 to the raise divided by 100 and multiplying by the current salary. 5. createReport(): This method adds the current employee's information to a String variable called report . Use a switch statement to determine the employee's status which figures out what is to be added to report. Terminated employees only have their names and "TERMINATED" as their status in the report whereas active employees have their names, current salary, raise, and new salary in the report. 6. printReport() : This method prints the report. The year in the report header must come from the computer. It cannot be hardcoded. 7. main(): The main() will call the above methods in the order listed for as many salaries as needed; therefore, you'll need a repetition

 

structure. Use a switch statement to only call setCurrentSalary(),

 

setRaise() and calcNewSalary() when the employee status is 1. Don't

 

forget to exit the main().

 


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