Auditing standards require that the engagement team members engage in discussion about the susceptibility of the financial statements to the risk of fraud. How does this discussion relate to the required discussion about the risk of material misstatement?
Recurring and Adjusting Entries
Following are Butler Realty Corporation’s accounts, identified by number. The company has been
in the real estate business for ten years and prepares financial statements monthly. Following the
list of accounts is a series of transactions entered into by Butler. For each transaction, enter the
number(s) of the account(s) to be debited and credited.
Discuss the following in the light of Adelphia Communication Case: Dearlove and Deloitte had identified the audit as posing much greater risk than normal. Describe the risk factors in the case that most likely would have led to this conclusion. Classify each of the accounting issues in the case into the financial shenanigans identified by Schilit in Chapter 7. Are there any accounting procedures that do not fit into one of the shenanigans? If not, make up a category to describe such procedures in a general way as did Schilit. Describe each of the auditing standards and procedures the auditors failed to adhere to given the facts of the case. How did the failure of the auditors to follow them violate Deloitte s ethical standards as evidenced by the deficiencies in the work of Dearlove and other members of the audit engagement team? Analyze the actions of Deloitte and Dearlove from an ethical reasoning perspective.
Which of the following documents contains rules and regulations for internal management of the company?A) Memorandum of AssociationB) Articles of Association C) Prospectus D) Statutory Declaration
Financial Statements Project You are required to prepare the following financial statements using Excel. USE EXCEL EFFICIENTLY AND EFFECTIVELY TO COMPLETE THIS PROJECT (cell references, formulas, etc.). (1) Using the data for Brady and Co. provided in the sheet labeled "Trial Balance" prepare: Balance Sheet – comparative, classifiedin proper format for fiscal years 2015 and 2016 Income Statement – multiple-stepfor fiscal years 2015 and 2016. Include earnings per share data. Statement of Retained Earnings for fiscal year 2016. Use separate sheets, appropriately named, for each financial statement in good form. List 5 notes that would be required if you were also preparing the notes to these financial statements. Do not prepare the notes, just briefly list the accounts that would requiredisclosure according to GAAP based on Brady's financial statements. (2) Using the data for Gronk, Inc. provided in the sheet labeled "Cash Flows" prepare: Statement of Cash Flows for fiscal year 2016 in proper format. Use a separate sheet, appropriately named, for the Statement of Cash Flows. (3) No consolidating — all acounts and subtotals must be listed ex. You cannot take multiple current assets accounts and create "other current assets." (4) Accounts must be in correct order – illustrated in your textbook (5) Place your name in cell A1 of the first sheet you create and on all sheets to be printed out. FILENAME: Name your file FSlastname. For example, my file would be named: FSRichard (6) Neatness counts. Make sure the pages break in appropriate places for printing. For instance, make sure the entire balance sheet prints out on one page. Look in your textbook as well as at the annual report of your favorite company for help with appropriate formatting, account ordering, subtotalling, underlining, grouping, etc. THIS IS A PROJECT TO BE COMPLETED TOTALLY BY EACH STUDENT. DO NOT POST QUESTIONS TO THE DISCUSSION BOARD. STUDENTS ARE TO RESEARCH ANY QUESTIONS ON THEIR OWN OR ASK ME THROUGH EMAIL
Performance reports _____.
a. are quantitative expressions ofaction plans
b. provide feedback by comparingresults with plans and by highlighting deviations from plans
c. are deviationsfrom a plan
d. ignore areas that are presumed tobe running smoothly QUESTION TITLE :- Performance reports
Orbach Company sells its product for $40 per unit. During 2005, it produced 60,000 units and sold 50,000 units (there was no beginning inventory). Costs per unit are: direct materials $10, direct labor $6, and variable overhead $2. Fixed costs are: $480,000 manufacturing overhead, and $60,000 selling and administrative expenses. The per unit manufacturing cost under absorption costing is
Madras Clothiers sells hand-sewn shirts for $40 per shirt. It incurs monthly fixed costs of $5,000. The contribution margin ratio is calculated to be 20%. What is the variable cost per shirt?
Activity 2: Gibson Company
Gibson Company manufactures a single product on an assembly-line basis. The units are started in Department Y
and then are moved to Department Z for the next process in the assembly line.
On January 1, the Work-in-Process inventory of Department Y consisted of 400 units, 20% complete as to
conversion. During the month, 800 units were started and 600 units were completed and transferred out. The
Work-in-Process on January 31 was 40% complete as to conversion. Materials are added evenly throughout the
Department Y costs in process at the beginning of the period amounted to $125,000 for materials and $35,000 for
conversion. Costs added during the period were materials costs of $190,000 and conversion costs of $133,000.
On January 1, the Work-in-Process inventory of Department Z consisted of 550 units, 50% complete as to
conversion. During the month, ___[?]___ units were completed and transferred out. The Work-in-Process on
January 31 was 250 units and was 60% complete as to conversion. Materials are added at the end of the process.
Department Z costs in process at the beginning of the period amounted to $230,000 for costs transferred in, $0
for materials, and $65,700 for conversion. In addition to the current period costs transferred into Department Z
from Department Y, costs added in Department Z during the period included materials costs of $108,000 and
conversion costs of $102,300.
Prepare a production cost report for Department Y using the weighted-average method and the FIFO method.
ACC 290 week 2 dq 2
What is the revenue recognition principle? What is the expense recognition principle? Why are they important to financial reporting?