Question

For your last assignment, which will be due next Thursday, before the last day of class,...

For your last assignment, which will be due next Thursday, before the last day of class, please refer back to the massage parlor business statement, attached herein. Given the way I have described what to do below I do not think this should take you more than an hour or two. Further, it should allow you to see the big picture of the audit. Here is what I want you to do.

STEP 1: For the following balance sheet items, as of the second year statements in the attachment, clearly mention how you could easily audit the amount shown with one procedure that would give you a pretty good comfort level if the amount is right or wrong (you might say we are looking at the assertions of existence and accuracy). The procedure may need to be done multiple times, but that is understood so you don't have to mention it. For example, there may be many bank accounts that are part of Cash. Your procedure would apply to all of those. I am looking for your answer for each account to be no longer than one or two sentences. So if you are writing more than that - don't. Go back and condense what you wrote. For example, and again for Cash, you could simply say "get Bank Confirmations from the bank(s)". You do not have to describe the full procedure of getting a bank confirmation. NOTE: it is understood that in a real audit your answers here will not be the only procedure, but you are looking for your answer to be one of the quickest and easiest ways to know if the balance sheet amount is most likely correct. Although confirmation may be an answer for several of the ones listed below, it is not for all since not all are easily subjected to being confirmed. This assignment requires you to use your judgement, which suggests that there may be more than correct approach (but not likely).

Here are the balance sheet accounts to address:

Cash = (now every one should get this one right!)

Loan Payable Bank

Payroll Tax Payable

Sales Tax Payable

Long Term Loans Payable

Plant Property and Equipment

Homework Answers

Answer #1

Audit Procedures:

CASH : Obtain Balance Confirmation from Bank.

LOAN PAYABLE BANK : Obtain Balance Outstanding Confirmation from Bank.

PAYROLL TAX PAYABLE : Apply analytical procedure by multiplying Total Remuneration with Payroll Tax Rate to get Payroll Tax Payable and verify with Challan of Tax Paid.

SALES TAX PAYABLE : Apply analytical procedure by multiplying Total Sales with Sales Tax Rate to get Sales Tax Payable and verify with Challan of Tax Paid.

LONG TERM LOANS PAYABLE : Obtain Balance Confirmation from Creditors.

PLANT PROPERTY AND EQUIPMENT : Physical Verification of the plant property and equipment so as to verify existence.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
We will take another Web Field Trip this week for your Assignment. Visit the following site:...
We will take another Web Field Trip this week for your Assignment. Visit the following site: bloomberg   .com /markets/rates You will find an amazing amount of information about GLOBAL interest rates. It will open to the United States. NOTE: For this link to operate properly, you may need to open it outside the classroom page, by opening a new browser window. Copy/paste the above address to a new page and go there outside of class. Explore, learn and really study...
Hi, I am forecasting balance sheet for one company. My tasks is find out if they...
Hi, I am forecasting balance sheet for one company. My tasks is find out if they can balance. If they don't, I have to find out what I can do to balance. For example, if there are more asset than liability, the company can pay dividends. This is the question: At this point, your forecast for the balance sheet will not balance. We now need to make financial policy decisions to balance based on how you have forecast the business...
Which of the following statements is true of vendor credits in QuickBooks Online? (select all that...
Which of the following statements is true of vendor credits in QuickBooks Online? (select all that apply) Vendor credits cannot be applied to a bill that has already been received Vendor credits post as a debit to decrease accounts payable Vendor credits post as a debit to increase accounts payable A vendor credit can be linked to a cash refund, when the cash is deposited 10 points    QUESTION 2 Before a client sets up a recurring monthly charge for...
Which is the better pet a cat or dog ?Well which is the better fruit ,...
Which is the better pet a cat or dog ?Well which is the better fruit , an apple or an orange? Down through the years , those Hary little entities have been part of my life . I have pre-dominantly fond thoughts every one of them , except possibly smoky, who used to get lost and had to be bailed out of the pound all the time . You can't lump your pets together by their species any more than...
Practice using EXCEL – Part of your Orientation Assignment to prepare for class on the first...
Practice using EXCEL – Part of your Orientation Assignment to prepare for class on the first day. Step by Step instructions on completing PR1-5B. BEFORE STARTING TO WORK THE PROBLEM YOU NEED TO WRITE ALL BALANCE FORMULAS. To do so do the following in order. Click on Cell D39. In D39 you will write a formula to add rows D37 and D38. To do so do the following: a)    Start in Cell D39 and press = sign b)    Highlight cell...
Submit a paper which is 2-3 pages in length (no more than 3-pages), In this paper,...
Submit a paper which is 2-3 pages in length (no more than 3-pages), In this paper, in addition to presenting the computed answers, please also discuss how you arrived at each answer the accounting problem asks. The accounting problem presents a company’s balance sheet, income statement, and statement of cash flows for a theoretical company, Polly’s Pet Products. Each of these statements has blank lines. Determine the values that would be appropriate for each blank line. Provide a narrative of...
Construct a C program which computes the minimum number of bills and coins needed to make...
Construct a C program which computes the minimum number of bills and coins needed to make change for a particular purchase. The cost of the item is $21.17 and the amount tendered is $100.00. These values should be built into your program using assignment statements rather than input into the program during program runtime. Your program should indicate how many bills and coins of each denomintaion are needed for the change. You should make use of the following denominations: Bills:...
Note: Do not use classes or any variables of type string to complete this assignment Write...
Note: Do not use classes or any variables of type string to complete this assignment Write a program that reads in a sequence of characters entered by the user and terminated by a period ('.'). Your program should allow the user to enter multiple lines of input by pressing the enter key at the end of each line. The program should print out a frequency table, sorted in decreasing order by number of occurences, listing each letter that ocurred along...
A. i) Choose a service type of business that you would like to start and write...
A. i) Choose a service type of business that you would like to start and write a brief description about it which includes the name of the company, place and type of business etc. ii) Further, list down 15 transactions done by your business in one month starting with the initial investment made by you in the firm. The transactions may include the following and may be made more than once: 1. Investment in business 2. Purchase of assets for...
The purpose of this discussion forum is to engage the class by sharing with your peers...
The purpose of this discussion forum is to engage the class by sharing with your peers the knowledge you have learned from this course. Therefore, this forum is structured to be similar to a "mini-research presentation forum." Each student shares with the class in their discussion posting the knowledge they have gained from their research. For your initial post: ACG 2021 Chapter 7 Learning Objective 6 - View before completing discussion assignment Cash Ratio ACG 2021Chapter 8 Learning Objective 5...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT
Active Questions
  • In a survey, 11 people were asked how much they spent on their child's last birthday...
    asked 14 minutes ago
  • Discussion 7.1: Practice Critical Thinking How well do you understand this material? Reading the material is...
    asked 15 minutes ago
  • A credit score measures a​ person's creditworthiness. Assume the average credit score for Americans is 709....
    asked 18 minutes ago
  • A Database Administrator (DBA) is play both managerial role and technical role in a modern organization;...
    asked 33 minutes ago
  • The Federal Election Commission collects information about campaign contributions and disbursements for candidates and political committees...
    asked 33 minutes ago
  • In the week before and the week after a​ holiday, there were 10,000 total​ deaths, and...
    asked 35 minutes ago
  • 1. Identify the vertex of the quadratic equation y=2x2+8x-10. using the formula 2. Write the equation...
    asked 51 minutes ago
  • How well do you understand this material? Reading the material is separate than understanding it; further,...
    asked 54 minutes ago
  • Analyze the behavior of capacitors under steady state direct current and high frequency AC current (500...
    asked 54 minutes ago
  • Traffic on the eastbound approach of a signalized intersection is traveling at 48 km/h, with a...
    asked 1 hour ago
  • Students in a chemistry class convince their teacher to use the following "group grading" scenario. Students...
    asked 1 hour ago
  • The letters of the word "REARRANGE" are randomly rearranged. What is the probability that this rearrangement...
    asked 1 hour ago