Chapter 7 Solutions 7.3 Raven Assets taken over Plant and machinery Furniture and fittings Inventories Trade receivables Brand Liabilities Identifiable net tangible assets Consideration transferred Goodwill RM 340‚000 40‚000 60‚000 60‚000 100‚000 600‚000 (22‚000) 578‚000 650‚000 72‚000 Debit RM To record the purchase price Gimmick Realisation account (Being the agreed purchase price.) Assets taken over Realisation account Trade payable Accumulated depreciation
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NATURE of AUDITING‚ ATTESTATION AND ASSURANCE SERVICES Let us understand a few terminologies before going further in the discussion of the details of auditing and assurance since these terms will be used often throughout the text. Auditing‚ attestation and assurance services are often used interchangeably because they encompass the same decision-process: defining the decision problem‚ defining the alternative choices‚ identifying and obtaining information relevant to the decision problem‚ evaluating
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Auditing – acc546 (3 credits) In this course‚ students focus on the auditing practice performed by public accountants. Topics include the CPA profession and the auditor’s role‚ planning the audit‚ audit reporting and required communications‚ evaluating internal controls‚ audit programs for current assets and liabilities‚ and audit programs for other business cycles. This graduate-level course is 6 weeks. To enroll‚ speak with an Enrollment Advisor. Topics and Objectives The CPA Profession
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Contents Executive Summary 2 Methodology 3 Introduction 4 Findings 5 A. Inventory balances and purchases transactions 5 B. Trade receivables and credit sales system 5 C. Property‚ Plant and equipment (PPE) 6 D. Trade payables transactions and balances 6 Implications 8 A. Inventory balances and purchases transactions 8 B. Trade receivables and credit sales system. 10 C. Property‚ Plant and equipment (PPE) 12 D. Trade payables transactions and balances 15 Conclusion The following conclusions
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be straightforward and honest in all the professional and business relationships. In this case‚ an auditor has to be integrity to present their honest and fair to the client. Even Game’s Limited’s managing director is unhappy with the existing auditing firm has been changed. Objective An auditor has to be objective and fair. Auditor has to be fairness and objective to provide financial report. The client’s point of view must not affect auditor’s objective. In this case‚ Games Ltd has been
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would stratify a population into meaningful groups if A. Probability-proportional-to-size (PPS) sampling is used. B. The population has highly variable recorded amounts. C. The auditor’s estimated tolerable misstatement is extremely small. D. The standard deviation of recorded amounts is relatively small. 6. An auditor is preparing to sample a client’s customer receivables for overstatement. A statistical sampling method that automatically provides stratification when using systematic selection
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Student: 1. Auditors may be independent in fact but not independent in appearance. True False 2. Auditing Standards issued by the PCAOB are the sole source of guidance for audits of public entities. True False 3. Attestation standards provide guidance for a wide variety of engagements different in scope than an audit. True False 4. Generally accepted auditing standards must be followed on all audit engagements. True False 5. The reporting principle relates to a firm’s system
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Week One Discussion Questions • How would you describe the entries to record the disposition of accounts receivables? What is their function? • How are bad debts accounted for under the direct write-off method? What are the disadvantages of this method? • Pendergrass Company hires an accounting intern who says that intangible assets should always be amortized over their legal lives. Is the intern correct? Explain. • What are the basic issues related to accounting for intangible
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equation. 2. What are the two components of stockholder’s equity? 3. What is the formula for current ratio‚ quick ratio‚ debt ratio‚ and working capital? 4. What is the group that presently creates accounting standards? 5. What gives the board of directors the right to change a company’s CEO? 6. What three things do you need to recognize revenue according to the revenue recognition concept? 7. What is the purpose of adjusting entries
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Name________________________ Student #_____________________ MGT 181 L. Jean Dunn‚ Jr. MIDTERM EXAMINATION 1. Describe the following finance career opportunities. (5 points) Hedge Fund Manager Manage funds for high net worth individuals‚ family trusts and pension funds. Investment Banker: An intermediary who arranges the sale of stock and bonds to raise capital for corporations. Also involved in arranging mergers and acquisitions of companies. 2. Draw a typical
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