Advance Auditing Concepts and Standards

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  • Topic: Auditing, Commercial bank, Bond
  • Pages : 1 (254 words )
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  • Published : February 3, 2013
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Audit Evidence
Jennifer Kline
Rasmussen College

Advanced Auditing Concepts & Standards
1. First Commercial Bank: Calculation of accrued interest on 12/31/11 is not right this change will be effected by a journal entry so that change is reflected in working balance too. 2. Lender’s Capital Corp.: The balance of 12/31/10 is $100,000 and additional borrowing of $ 50,000 so the yearend balance should have been $ 150,000 but actual figure is $ 200,000 confirmed from the lender. This is not correct. Need $150,000 to be confirmed by lender. 3. J.Lott majority shareholder: The $100,000 was taken on 1/7/12 stated in the comments should be included in balance and a journal entry has to be made to rectify mistake. No interest has been paid and no accrued interest so this interest amount on total $400,000 ( $100,000 reduction has occurred on 12/31) should be included by journal entry on 31st Dec and accounts and this statement corrected. Interest amount calculated is $36,000. 4. Five year maturity for disclosure:

a. 12/31/2011:-
i. Total amount of Gigantic Building & Loan Association:$ 600,000 apart from $5,000 P.M. from Jan.11 to Dec.11 ii. Total amount borrowed from majority shareholder J. Lott is $ 400,00 b. 12/31/14:

iii. $ 250,000 borrowed from First Commercial Bank is due 1-1-15 c. 3/5/13:
iv. $ 200,000 borrowed from Lender’s Capital Corp. is due 3/5/13.
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