...CHAPTER 4 AUDIT EVIDENCE AND AUDIT DOCUMENTATION Answers to Review Questions 4-1 Auditors typically divide the financial statements into components or segments in order to make the audit more manageable. A component can be a financial statement account or a business (transaction) process. This approach allows the auditor to gather evidence by examining the processing of related transactions through the accounting system from their origin to their ultimate disposition in the accounting journals and ledgers. Thus, the auditor can examine an accounting transaction from the time it is initiated by the entity until its final recording in the financial statement accounts. 4-2 The financial statements contain management's assertions about the various financial statement components. The auditor tests management’s assertions by conducting audit procedures that provide evidence on whether each relevant assertion is supported. The results from applying audit procedures provide the evidence that supports the fair presentation of management’s assertions and the auditor's report (see Figure 4-1). 4-3 Assertions about classes of transactions and events for the period under audit: Assertion Definition Occurrence Transactions and events that have been recorded have occurred and pertain to the entity (sometime referred to as validity). Completeness All transactions and events that should have been recorded have been recorded. Authorization All transactions and events have...
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...Audit Evidence of Grande Store Case Nancy Johnson Rasmussen College Author Note This paper is being submitted on January 23, 2015, for Gary Rosner, A340 Advanced Auditing Concepts and Standards course. Audit Evidence of Grande Store Case When it came to the audit of the Grande Store there was insufficient numbers (four out of 1,100) to be an exact for the confirmations that were made regarding what was spent by McClure Advertising Credits. With 114 pages, 1,100 vendors and $300,000 at least 1% should have been audited for each vendor. Getting information to confirm by an outsider who has the qualifications is reliable and acceptable but it should be in written form. The auditors of Grande Store used the phone. This alternative procedure might be acceptable but it should never be used. The auditors felt the differences in the audit were immaterial, but the auditors should have went further and found out the reason for these differences. If the auditors had kept track of the differences they might have found that there were many errors this causing them to find the reason why there were so many differences (Arens, Elder, & Beasley, 2012, pp. 175-206). When it came to testing the ad’s the auditors should never rely on just internal documentation. By trusting the internal documentation they did not have sufficient enough evidence to support the credits. Placing an ad is not sufficient enough evidences without quality supporting evidences from the vendor that it...
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...Advertisement Has WIRETIME, Inc., committed any torts? If so, explain. WIRETIME, Inc. might have committed written defamation, alongside BUGusa, Inc. by inserting an ad in a magazine saying that the corporations had defective and low quality merchandise. BUGusa must attest to four fundamentals to confirm a case against WIRETIME. Initially, BUGusa must prove that the announcements made in the advertisement are not factual. The ad was published in a magazine, proving the distribution to a third party component. The ad precisely cited BUGusa’s recording devices, me the criteria. The last part to show that BUGusa suffered harm is because of the advertisement. A substantial decrease in sales after the printing date of the advertisement is adequate evidence to prove the final element. Scenario: WIRETIME, Inc. (Janet) Has WIRETIME, Inc. committed any torts? If so, explain. In the situation between Janet and WIRETIME, Inc., Janet was called by the Human Resource manager for WIRETIME, Inc. and requested if she would come into work for them unknowing there is a contract between Janet and BUGusa, Inc. This contract states she is not permitted to be employed by any of BUGusa's competitors for the extent of the 2-year contract. Once she gave the manager a copy of the agreement, she was soon offered a 10% increase in her current salary, in addition a $5,000 bonus for signing. WIRETIME, Inc. did commit a tort. They committed a tortuous intrusion with existing contractual association...
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...Bus Radio Theft Investigation Case Joseph Hawley Sec/430 October 28, 2013 Damain Torres Bus Radio Theft Investigation Case In every crime discovered by the authorities, expect an investigation. It is done for the authorities to know more about the case at hand, to find out the responsible party, their reasons, why they chose the victims and so on. It is used to create a case and to give justice to what the victims has experienced. Although the main reason for investigating us take for example a case in Kelsey known as the “Bus Radio Theft Case”. It happened at one of the schools in Kelsey which is the Unified School District. The perpetrators choose to steal radios from school buses. Although the case happened a few years back, there are some aspects of investigations used in this case that we want to study and show you. In reviewing the said incident, we can simply learn one thing, how to solve the mystery involving radio bus thefts. We will take a look at how the investigators of the said case created and accumulated their documents, how they made observations and derive their resolutions from it. We will also take a look at some o the important and useful techniques they used to make the investigation a success including choosing the right people for questioning. The way these investigators compiled the information they gathered will be taken into consideration as well. The investigation about the bus radio theft incidents started after a report came in saying there...
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...Oregon v. Alvarez A139512 Facts: Maximilliano Alvarez is the Defendant in this case and Eric Johansen argued the versus the State of Oregon. The defendant appealed from conviction that was a gang-related assault. The defendant hit and beat a 16 year old with a metal baseball bat, and also his friend used a metal rod. The jury gave him guilty verdicts on two counts of first degree assault, and 3 counts of unlawful use of a weapon. The defendant pointed out an error on the first degree assault stating that the state did not prove that his assault caused the victim “serious physical injury” the defendant did not think that his actions did not cause damage to a point where the victim was at risk of dying. The court didn’t show evidence that when Mr. Alvarez hit the victim with the metal baseball bat that his hits created a “substantial risk of death”. Questions presented: 1. Was the beating that Mr. Alvarez gave to the victim enough to cause a substantial risk of death? 2. Should the defendant be able to get rid of the first degree assault to a lowered charge because the prosecutor didn’t show how his actions made the risk of death? 3. What is enough to cause “serious physical injury?” Answers/holding: We conclude, the court decided that because a blow to the victims head hard enough to make a “ding” sound, to have a wound where it exposed the skull, to have to need four stables and, cause the victim to be unconscious it still was a substantial risk of death. Also the...
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...considered how many different types of chemicals are on the food you are eating for dinner? That is exactly what Rachel Carson writes about in her novel Silent Spring. Pesticides are all around us, they are in the air we breathe, the water we drink and the ground we walk on. Their effects on our bodies and the environment are unknown, but chances are that they are not going to be good. Rachel Carson dedicates an entire novel to try to prove her point of how horrible they are for the world. She argues constantly that we need to find an alternative before it is too late. Within her arguments, Carson uses several different methods and types of evidence while trying to convey her point. Throughout the entire novel, Carson is constantly putting down the use of pesticides. However, everything she says would be useless if she did not have evidence. She uses qualitative and quantitative data several times throughout the book. Her use of qualitative data begins with her first paragraph. She describes the beauty of nature and how much life is abundant in it. Then as her fictional story continues, she begins to start explaining how none of this would be with the continuous use of pesticides. Carson also goes into detail describing the disastrous effects that it could leave on the environment as a whole. Her realistic descriptions of the possible harms of the pesticides can really appeal to the reader. With the vivid descriptions that she has, the reader can imagine the world as she describes...
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...Introduction Fresh Direct describes itself as the “new way to shop for food” on it’s about us page. As I watched more and more of the trucks make the rounds throughout New York since 2002 I thought to myself that this sounds like a pretty cool service. As a southerner who moved to New York in 1998, I used to buy in bulk and cook every meal upon arrival. At that time I was a 23-year-old grad student who would quickly realize: 1. with no family there was no need to buy in bulk and 2. my studies would win my time not cooking. I would soon eat out every single meal. When I did shop for groceries, it was in bulk for summer barbeques at specialty stores. I used specific Canal Street fishmongers for seafood. This experience in becoming a “time poor” New Yorker taught me how to survive on the services and specialty stores available. On October 10, 2008 I decided to try Fresh Direct and I’ve been a customer ever since. "After fresh and direct, the retailer's third most important consideration is convenience, critical in a market where restaurant competition is as significant as supermarket."1 At its most basic level, the company offers customers the convience of on demand fresh food for less than (or the same as) the supermarket. My first hand observations with how the company fulfills their promise are where I will start this exploration. I attempted to gain insight into the back-room activities and systems that make their offering possible through ordering, complaining, returning and...
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...The Value Of Our Actions. Sometimes is easier for people to understand what you mean by our own actions. The act of talking and not proving what you say might annoy people or disappoint them. In fact, showing what you mean when you’re teaching something is very helpful for society to understand better. And, also, words sometimes nowadays don’t mean the most understandable thing for people, you need to show it if you want to say it, or they will not believe you. Talking about if they will believe you or not, it depends on what you’re talking. For example, if you want to impress somebody, you need to show how impressive you are and tell always the truth before telling him or her lies. Because of that type of issues, people are starting to reject words that people (such as magazines) say without proof. Years ago, things were different because when someone said something, real or unreal, people used to believe in it. Of course, some kinds of things are still believed without proof, but that’s just because people want it to be real but the truth is that they aren’t. Truth or lie, people nowadays must show what they mean by actions that sometimes make people annoyed. In our society, things are getting very complicated because nobody agrees in what to believe in. Also, people say something but they don’t have any actions to show what they’re saying. In fact, there’s an action for everything you want to say, but finding the action is the hardest part. But, when people start finding...
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...Case 10-10 An Offer You Can’t Refuse Fast Eddie, a publicly held company, manufactures and installs refrigeration systems for governmental and commercial applications. Fast Eddie is being investigated by a governmental agency for overpricing on government sales during the period from 2003 through 2005 as well as allegations of misrepresentations by one of Fast Eddie’s former officers, Sweet Lou. The criminal and civil investigations began in late 2005. In the prior fiscal year, the company’s auditors, CPAs-R-Us, obtained management’s representation and a letter from Fast Eddie’s independent legal counsel that indicated that the ultimate outcome of the investigation could not be determined and that any potential payment for the alleged breaches would not have a material effect on the financial statements. Accordingly, no accrual was recorded in the financial statements, and CPAsR-Us issued a standard unqualified opinion on Fast Eddie’s 2006 financial statements. Fast Eddie’s fiscal year-end is March 31. The government commenced its investigation into the allegations in late 2005 by obtaining a subpoena for all of Fast Eddie’s corporate records (both hard copy documents and computer files) related to government sales during the period in question. In 2006, the government provided Sweet Lou with a report detailing the allegations of defective pricing. At that time, Sweet Lou alerted the other officers at Fast Eddie of the manner in which he had prepared the documents in question...
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...Research Strategy for Weight Loss Emily Fioramonti GEN/200 Foundations for General Education and Professional Success May 9, 2010 Monica Griffin Everyone encounters tough problems and decisions in life, from day-to-day or life-altering choices. The ease with which we solve these problems is an indication of the development stage of our critical and creative thinking abilities. Virtually every problem can be solved by implementing the same process, which we will disect into easy to follow steps. First, we must define our purpose, by asking “Why do I want to research?”. Next, we will gather information, by discovering “Where can I find the desired information?”. Finally, we will evaluate this information, through examining evidence, perspective, validity, and assumptions (Bishop, et al., 2007, p. 78). Devloping a research strategy for successful weight loss can be a great lifelong resource, following those simple steps. Through mastering the art of research, we will become better real-life problem solvers, as well as more exceptional students. Before beginning the process of research and evaluation, one must define their purpose, or figure out why he or she wishes to analyze a particular topic. In my case, losing twenty pounds is a problem I feel strongly about solving because it is important to be healthy and feel good. Boosting confidence is only a peripheral side effect of weight loss. Upon making the decision to lose twenty pounds, I can analyze my diet and lifestyle...
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...The Claims of Elaine E. Whitaker Whitaker makes several interesting claims about the characters in Why I Live at the P.O. The three claims I found most insightful were that “Throughout the narrative, Sister views her own efforts as undervalued”(115), “Like her furnishings, Sister appears incomplete” (Whitaker 115), and “ Why I Live at the P.O. also bottles up knowledge itself through its deliberate repression by various characters” (115). Each of these claims allows the reader to contemplate different aspects of the story so they can gain a better understanding of the characters. I will examine theses three claims and try to find evidence in the story to support or disprove them. When reading Why I Live at the P.O. it is easy to see why Whitaker would make the claim that “Throughout the narrative, Sister views her own efforts as undervalued” (115) From the very start of the story sister expresses a sense of feeling unappreciated with her comment “There I was over the hot stove, trying to stretch two chickens over five people and a completely unexpected child into the bargain without one moment’s notice” (Welty 415). This comment shows that Sister believes no body cared enough about the effort she puts into making dinner for the family to inform her that there would be more people to feed. As the family sits down to eat the dinner Sister has prepared no one thanks her or even acknowledges the fact that she alone made dinner for everyone. Sister later tells how she was...
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...Accelerated Accompanied Accomplished Accumulated Achieved Acquired Acted Adapted Addressed Adjusted Administered Admitted Adopted Advanced Advertised Advised Advocated Aided Allocated Allowed Analyzed Answered Anticipated Applied Appointed Appraised Approved Arbitrated Arranged Assembled Assessed Assigned Assisted Assumed Assured Attained Attended Audited Authored Authorized Awarded Balanced Bargained Billed Bought Briefed Budgeted Built Calculated Canceled Catalogued Chaired Changed Charged Charted Checked Cited Clarified Classified Cleared Closed Coached Coded Collaborated Collated Collected Combined Commanded Commended Commissioned Committed Communicated Compared Compiled Composed Compounded Computed Conceived Concluded Condensed Conducted Conferred Conserved Considered Consolidated Constructed Consulted Contacted Contracted Contributed Controlled Converted Convinced Cooperated Coordinated Copied Corrected Corresponded Counseled Created Credited Critiqued Decided Decreased Defined Delegated Delivered Demonstrated Deposited Described Designated Designed Detailed Detected Determined Developed Devised Diagnosed Directed Disapproved Disbursed Discovered Discussed Dismantled Dispatched Dispensed Dispersed Displayed Disproved Dissolved Distributed Diversified Documented Doubled Drafted Drew Earned Edited Educated Effected Elected Eliminated ...
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...its claims, evidence, and the presentation of the claims and evidence. The author’s main claim is that post-1965 immigration is threatening the American Culture. It is clearly stated fairy early in this essay because the author makes a clear introduction, lists many examples of the negative influence of outside culture on American society, and then stresses the thesis. In terms of his subsidiary claims, he proposes the reason why American people allow the negative impact of immigration take place and even feel helpless about the issue. They are not very related claim because he focuses on criticizing the law makers’instead of explaining why immigration threatens American culture. Besides, his claim is very partial because he ignores all positive influence of immigration. As for the evidence in this paper, the author adopts various types of evidence including the facts, examples, expert testimony and analogy. The number of the evidences is a bit over sufficient. The author uses so many simple examples and facts in each section of the essay especially the first paragraph. The evidences are relatively very specific, because the author writes down the examples or facts with very detailed information. For instance, the name, location, story, process and result. However, the author does not explain the drawbacks of the 1965 Immigration Act very clearly, thus readers would feel confused if they are not familiar with this law. Some of the evidences are not quite...
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...The first piece of evidence that shows reasonable doubt is the uniqueness of the knife. In the play, the storekeeper identified the knife and said it was the only one of its kind he had in stock. Also, one juror stated, “it’s a very strange knife. I’ve never seen one like it before in my life. Neither had the storekeeper who sold it to him.” (Pg. 23-24). Later, juror 8 reaches into his pocket and takes out a knife and states, “Look at it! It’s the same knife!”…”I hot it in a little junk shop around the corner from the boy’s house. It costs two dollars.” (Pg. 24) After discussing the uniqueness of the knife, the jurors decided there was reasonable doubt when the old man’s testimony came into the question. In this play, the second piece of evidence that shows reasonable doubt is the old man’s testimony. An old man lived right underneath the room where the murder took place. He heard loud noises at 12:10 from upstairs. It sounded like a fight to him and he heard the boy say, “I’m gonna kill you.” He heard a body fall a second later, and he saw the boy run out of the apartment. The old man called the police and they found a knife in the father’s chest. The old man states that he took 15 seconds to get out of bed and see the boy run down the stairs. However, juror 8 proves that the old man’s timing was off because it is impossible for an old man, who carries two canes, to walk and see the boy run out of the building in 15 seconds. Also, the jurors prove that the old...
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...of a group of interconnected skills to analyze, creatively integrate, and evaluate what you read and hear. To become a critical thinker you must be able to decide whether an author’s opinions are true or false, whether he or she has adequately defended those ideas, whether certain recommendations are practical, as well as whether particular solutions will be effective. The characteristics of that kind of thinking are: Knowledge, Comprehension, Application, Analysis, Synthesis, and Evaluation. Within that movie, there were three points raised in the trial that juror #8 believed argument analysis: 1- The knife that was the murder weapon was unique and the boy was seen with it, although he said he had lost it. 2- The old man gave evidence that he heard the boy say “I’ll kill you” from his apartment below and he saw the boy running from the down stairs of the apartment after rising from bedroom. 3- That the old lady saw the boy kill his father through her window, while a train was passing. In that trial most of the jurors are content to use deductive reasoning. Juror #3 gives his reasons for reaching the conclusion that “it is quite clear that the boy never went to the movie that night, returned home and killed his father with the knife as...
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