ACC 410 Entire Course

For more course tutorials visit

www.acc410.com

ACC 410 Week 1 DQ 1 Internal vs. External Audit Staffs

ACC 410 Week 1 DQ 2 Audit Reports
ACC 410 Week 1 Assignment Generally Accepted Auditing Standards
ACC 410 Week 2 DQ 1 Balance Sheet Verification
ACC 410 Week 2 DQ 2 Accounting Principles
ACC 410 Week 2 Assignment Analytical Procedures
ACC 410 Week 3 DQ 1 Audit Programs
ACC 410 Week 3 DQ 2 Internal Control Procedures
ACC 410 Week 3 Assignment Internal Control Case
ACC 410 Week 4 DQ 1 Legal Case
ACC 410 Week 4 DQ 2 Ethics Case
ACC 410 Week 5 DQ 1 Audit Reporting
ACC 410 Week 5 DQ 2 Audit Reports
ACC 410 Week 5 Final Paper Audit Plan Keystone Computers
ACC 410 Week 5 Assignment Audit Report Modifications Paper

------------------------------------------------------------------------------------------------------

ACC 410 Entire Course

For more course tutorials visit

www.acc410.com

ACC 410 Week 1 DQ 1 Internal vs. External Audit Staffs

ACC 410 Week 1 DQ 2 Audit Reports
ACC 410 Week 1 Assignment Generally Accepted Auditing Standards
ACC 410 Week 2 DQ 1 Balance Sheet Verification
ACC 410 Week 2 DQ 2 Accounting Principles
ACC 410 Week 2 Assignment Analytical Procedures
ACC 410 Week 3 DQ 1 Audit Programs
ACC 410 Week 3 DQ 2 Internal Control Procedures
ACC 410 Week 3 Assignment Internal Control Case
ACC 410 Week 4 DQ 1 Legal Case
ACC 410 Week 4 DQ 2 Ethics Case
ACC 410 Week 5 DQ 1 Audit Reporting
ACC 410 Week 5 DQ 2 Audit Reports
ACC 410 Week 5 Final Paper Audit Plan Keystone Computers
ACC 410 Week 5 Assignment Audit Report Modifications Paper
-------------------------------------------------------------------

ACC 410 Week 1 Assignment Generally Accepted

Auditing Standards

For more course tutorials visit

www.acc410.com

Generally Accepted Auditing Standards. Complete problem below

and submit to your instructor. Write under the generally accepted
auditing standards column the specific standard that was violated and
how the action of Jones resulted in a failure to comply with each
standard. Organize your answer as shown below; specifically with a
column for the standard that was violated and a column for the required
action. Thepapershouldbe 2-3 pages.

Problem:

John Clinton, owner of Clinton Company, applied for a bank loan and
was informed by the banker that audited financial statements of the
business had to be submitted before the bank could consider the loan
application. Clinton then retained Arthur Jones, CPA, to perform an
audit. Clinton informed Jones that audited financial statements were
required by the bank and that the audit must be completed within three
weeks. Clinton also promised to pay Jones a fixed fee plus a bonus if the
bank approved the loan.

-------------------------------------------------------------------------------------------------------------------------

ACC 410 Week 1 DQ 1 Internal vs. External Audit Staffs

For more course tutorials visit

www.acc410.com

Internal vs. External Audit Staffs. Spacecraft, Inc., is a large

corporation that is audited regularly by a public accounting firm but also
maintains an internal auditing staff. Explain briefly how the relationship
of the public accounting firm to Spacecraft differs from the relationship
of the internal auditing staff to Spacecraft. Do not forget to show the
necessary steps and explain how you attained that outcome.
Respondtoatleasttwoofyourclassmates postings
-------------------------------------------------------------------------------

ACC 410 Week 1 DQ 2 Audit Reports

For more course tutorials visit

 www.acc410.com

Audit Reports. Evaluate the following question: If a CPA firm

completes a nonpublic company audit of Adam Companys financial
statements following IACPA generally accepted auditing standards and
is satisfied with the results of an audit, an unmodified report may be
issued. On the other hand, if no audit is performed of the current years
financial statements, but the CPA firm has performed satisfactory audits
in prior years, has confidence in the management of the company, and
makes a quick review of the current years financial statements, a
qualified report may be issued. Do you agree? Give reasons to support
your answer. Do not forget to show the necessary steps and explain how
you attained that outcome.

-------------------------------------------------------------------------------

ACC 410 Week 2 Assignment Analytical Procedures

For more course tutorials visit

www.acc410.com
Analytical Procedures. In a 2-3 page paper, complete the case below and
submit to instructor. Review the income statement for Uden Supply
Company and answer the following:
a. Describe the purpose of analytical procedures performed in the
planning stage of the audit.
b. Uden Supply has projected its 2004 gross profit at 31% of sales
despite expectation for some shrinkage in margins. On the basis of
Uden's operating performance in years 2001 - 2003 project your best
guess for 2004. Project 2004 based on the incremental changes for each
line item over the last three years.
c. Udens unaudited financial statements for the current year show a 31
percent gross profit rate. Assuming that this represents a misstatement
from the amount that you developed as an expectation, calculate the
estimated effect of this misstatement on net income before taxes for
20X4.
d. Indicate whether you believe that the difference calculated in part (c)
is material. Explainyouranswer. (50-100 words).
Comparative income statement information for Uden Supply Company
is presented in the accompanying table. UDEN SUPPLY COMPANY
ComparativeIncomeStatement
Years Ended December 20X1, 20X2, and 20X3
(Thousands)
20X1 Audited 20X2 Audited 20X3 Audited 20X4 Expected
Sales 8,700 9,400 10,100
Costofgoodssold 6,000 6,500 7,000
Grossprofit 2,700 2,900 3,100
SalesCommissions 610 660 710
Advertising 175 190 202
Salaries 1,061 1,082 1,103
Payrolltaxes 184 192 199
Employeebenefits 167 174 181
Rent 60 61 62
Depreciation 60 63 66
Supplies 26 28 30
Utilities 21 22 23
Legalandaccounting 34 37 40
Miscellaneous 12 13 14
Interestexpense 210 228 240
Netincomebeforetaxes80 150 230
Incomestaxes 18 33 50
Netincome 62 117 180

-------------------------------------------------------------------------------

ACC 410 Week 2 DQ 1 Balance Sheet Verification

For more course tutorials visit

 www.acc410.com

Balance Sheet Verification. The best means of verification of cash,

inventory, office equipment, and nearly all other assets is a physical
count of the units; only a physical count gives the auditors complete
assurance as to the accuracy of the amounts listed on the balance sheet.
Evaluate this statement. Remember to complete all parts of the
problems. Do not forget to show the necessary steps and explain how
you attained that outcome. Respond to at least two of your classmates
postings

-------------------------------------------------------------------------------

ACC 410 Week 2 DQ 2 Accounting Principles

For more course tutorials visit

www.acc410.com

Accounting Principles. Discuss what is meant by the phrase shopping

for accounting principles. What mechanisms have served to prevent
this practice by management? Remember to complete all parts of the
problems. Do not forget to show the necessary steps and explain how
you attained that outcome
-------------------------------------------------------------------------------

ACC 410 Week 3 Assignment Internal Control Case

For more course tutorials visit

www.acc410.com

Internal Control Case. Complete Case 18-37 (p. 724-725) and submit
to instructor. For each of the following independent cases state the
highest level of deficiency that you believe the circumstances represent--
a control deficiency, a significant deficiency, or a material weakness
-------------------------------------------------------------------------------

ACC 410 Week 3 DQ 1 Audit Programs

For more course tutorials visit

www.acc410.com

Audit Programs. All experienced auditors would design exactly the

same audit program for a particular audit engagement. Do you agree?
Explain. Remember to complete all parts of the problems. Do not forget
to show the necessary steps and explain how you attained that outcome

-------------------------------------------------------------------------------
 ACC 410 Week 3 DQ 2 Internal Control Procedures

For more course tutorials visit

www.acc410.com

Internal Control Procedures. Describe what is meant by a walk-

through. Must walk-throughs be performed during audits of internal
control over financial reporting? May the client perform a walk-through
and the auditors then review the clients work? Remember to complete
all parts of the problems. Do not forget to show the necessary steps and
explain how you attained that outcome

-------------------------------------------------------------------------------

ACC 410 Week 4 Critical Thinking Quiz

For more course tutorials visit
www.acc410.com
ACC 410 Week 4 Critical Thinking Quiz
-------------------------------------------------------------------------------

ACC 410 Week 4 DQ 1 Legal Case

For more course tutorials visit

www.acc410.com
Legal Case. Compare the rights of plaintiffs under common law with
the rights of persons who purchase securities registered under the
Securities Act of 1933 and sustain losses. In your answer, emphasize the
issue of who must bear the burden of proof. Remember to complete all
parts of the problems. Do not forget to show the necessary steps and
explain how you attained that outcome.
-------------------------------------------------------------------------------

ACC 410 Week 4 DQ 2 Ethics Case

For more course tutorials visit

www.acc410.com

Ethics Case. Harris Fell, CPA and member of the AICPA, was engaged
to audit the financial statements of Wilson Corporation. Fell had half-
completed the audit when he had a dispute with the management of
Wilson Corporation and was discharged. Hal Compton, CPA, was
promptly engaged to replace Fell. Wilson Corporation did not
compensate Fell for his work to date; therefore, Fell refused to allow
Wilson Corporations management to examine his working papers.
Some of the working papers consisted of adjusting journal entries and
supporting analysis. Wilson Corporations management had no other
source for this information. Did Fell violate the AICPA Code of
Professional Conduct? Explain fully. Remember to complete all parts of
the problems. Do not forget to show the necessary steps and explain how
you attained that outcome
-------------------------------------------------------------------------------

ACC 410 Week 5 Assignment Audit Report

Modifications Paper

For more course tutorials visit

www.acc410.com

Audit Report Modifications. Complete problem below. List a represents

the types of opinions the auditor ordinarily would issue and List B
represents the report modifications [if any] that would be necessary.
Select as the best answer for each situation [items 1 to 6] the type of
opinion and modifications, if any, the auditor would normally select.
The types of opinions in List A and the report modifications in List B
may be selected once, more than once, or not at all. The paper should be
2-3 pages.
Problem:
Items 1 through 6 present various independent factual situations an
auditor might encounter in conducting an audit. For each situation
assume:
Assume:
The auditor is independent.
The auditor previously expressed an unqualified opinion on the prior
years financial statements.
Only single-year (not comparative) statements are presented for the
current year.
The conditions for an unqualified opinion exist unless contradicted in
the factual situations.
The conditions stated in the factual situations are material.

No report modifications are to be made except in response to the

factual situation.
Situations:
1. In auditing the long-term investments account, an auditor is unable to
obtain audited financial statements for an investee located in a foreign
country. The auditor concludes that sufficient appropriate audit evidence
regarding this investment cannot be obtained.
2. Due to recurring operating losses and working capital deficiencies, an
auditor has substantial doubt about an entitys ability to continue as a
going concern for a reasonable period of time. However, the financial
statement disclosures concerning these matters are adequate.
3. A principal auditor decides to take responsibility for the work of
another CPA who audited a wholly owned subsidiary of the entity and
issued an unqualified opinion. The total assets and revenues of the
subsidiary represent 17 percent and 18 percent, respectively, for the total
assets and revenues of the entity being audited.
4. An entity issues financial statements that present financial position
and results of operations but omits the related statement of cash flows.
Management discloses in the notes to the financial statements that it
does not believe that statement of cash flows to be a useful financial
statement.
5. An entity changes its depreciation method for production equipment
from straight-line to a units-of-production method based on hours of
utilization. The auditor concurs with the change, although it has a
material effect on the comparability of the entitys financial statements.
6. An entity discloses certain lease obligations in the notes to the
financial statements. The auditor believes that the failure to capitalize
these leases is a departure from generally accepted accounting
principles.

Required:
List A represents the types of opinions the auditor ordinarily would issue
and List B represents the report modifications (if any) that would be
necessary. Select as the best answer for each situation (items 1 through
6) the type of opinion and modifications, if any, the auditor would
normally select. The types of opinions in List A and the report
modifications in List B may be selected once, more than once, or not at
all.
(AICPA, adapted) List A List B
TypesofOpinions ReportModifications
A. An "except for" qualified opinion H. Describe the circumstances in
a explanatory paragraph preceding the opinion paragraph without
modifying the three standard paragraphs.
B. Anunqualifiedopinion I. Describe the circumstances in an
explanatory paragraph following the opinion paragraph without
modifying the three standard paragraphs.
C. Anadverseopinion J. Describe the circumstances in an explanatory
paragraph preceding the opinion paragraph, and modify the opinion
paragraph.
D. A disclaimer of opinion K. Describe the circumstances in an
explanatory paragraph following the opinion paragraph, and modify the
opinion paragraph.
E. Either an "except for" qualified opinion or an adverse opinion. L.
Describe the circumstances in an explanatory paragraph preceding the
opinion paragraph, and modify the scope and opinion paragraphs.
F. Either a disclaimer of opinion or an "except for" qualified opinion.
M. Describe the circumstances in an explanatory paragraph
following the opinion paragraph, and modify the scope and opinion
paragraphs.
G. Either an adverse opinion or a disclaimer of opinion N. Describe the
circumstances within the scope paragraph without adding an explanatory
paragraph.
O. Describe the circumstances within the opinion paragraph without
adding an explanatory paragraph.
P. Describe the circumstances within the scope and opinion paragraphs
without adding an explanatory paragraph.
-------------------------------------------------------------------------------

ACC 410 Week 5 DQ 1 Audit Reporting

 For more course tutorials visit
www.acc410.com

Audit Reporting. Wade Corporation has been your audit client for
several years. At the beginning of the current year, the company changed
its method of inventory valuation from average cost to last in, first out
(LIFO). The change, which had been under consideration for some time,
was in your opinion a logical and proper step for the company to take.
What effect, if any, will this situation have on your audit report for the
current year? Remember to complete all parts of the problems. Do not
forget to show the necessary steps and explain how you attained that
outcome

----------------------------------------------------------------------------------------------

ACC 410 Week 5 DQ 2 Audit Reports

For more course tutorials visit

www.acc410.com

Audit Reports. The auditors do not believe that certain lease obligations
have been reflected in conformity with generally accepted accounting
principles in the clients financial statements. What type of opinion
should the auditors issue if they decide that the exceptions are
immaterial? Material?Very material? Remember to complete all parts of
the problems. Do not forget to show the necessary steps and explain how
you attained that outcome
----------------------------------------------------------------------------------------------

ACC 410 Week 5 Final Paper Audit Plan Keystone

Computers

For more course tutorials visit

www.acc410.com

The final paper will be based on Appendix 6C Illustrative Audit Case:

Keystone Computers at pages 237-244 in your text. Write, in outline
format but in complete sentences, a 6 to 10 page audit plan. It is
recommended that you look at Figure 18.8 on page 708, which shows
the control objectives related to accounts receivable.

In your audit plan cover the steps necessary to determine if you should
select the client, the internal control procedures which need to be
reviewed, the substantive tests [using accounts receivable a guide], and
the final reporting steps. Based on the actual facts in the case determine
the emphasis you want to place on various accounts. Also reflect back
over your entire accounting program and think about how the accounts
are interrelated. For example, when allowance for doubtful accounts is
credited the offset is to bad debt expense. Therefore one of the steps
should be to trace the debit side of the entry to the balance for bad debt
expense.

Make your comments as specific as possible. Rather than say look for
unusual entries, say look for entries from unusual sources and rounded
amounts with focus on those near an accounting cut off. Use precise
language. Rather than saying you vouched accounts payable, say that
you looked at the item to determine that it was a bona fide business
expense. Remember to focus on the key audit objectives and support
needed after applying the audit risk model.

Remember, the purpose of the Final Paper is for you to culminate the
learning achieved in the course by describing your understanding and
application of knowledge in the field of accounting.

The Final Paper should focus on real life, real time application of topics
covered in this course; the uses you have seen and the uses you can
envision. The paper must be submitted to your instructor no later than
the last day of class.

----------------------------------------------------------------------------------------------

ACC 410 Week 1 Assignment Generally Accepted

Auditing Standards

For more course tutorials visit

 www.acc410.com

Generally Accepted Auditing Standards. Complete problem below

and submit to your instructor. Write under the generally accepted
auditing standards column the specific standard that was violated and
how the action of Jones resulted in a failure to comply with each
standard. Organize your answer as shown below; specifically with a
column for the standard that was violated and a column for the required
action. Thepapershouldbe 2-3 pages.

Problem:

John Clinton, owner of Clinton Company, applied for a bank loan and
was informed by the banker that audited financial statements of the
business had to be submitted before the bank could consider the loan
application. Clinton then retained Arthur Jones, CPA, to perform an
audit. Clinton informed Jones that audited financial statements were
required by the bank and that the audit must be completed within three
weeks. Clinton also promised to pay Jones a fixed fee plus a bonus if the
bank approved the loan.

ACC 410 Week 1 DQ 1 Internal vs. External Audit Staffs

 For more course tutorials visit
www.acc410.com

Internal vs. External Audit Staffs. Spacecraft, Inc., is a large

corporation that is audited regularly by a public accounting firm but also
maintains an internal auditing staff. Explain briefly how the relationship
of the public accounting firm to Spacecraft differs from the relationship
of the internal auditing staff to Spacecraft. Do not forget to show the
necessary steps and explain how you attained that outcome.
Respondtoatleasttwoofyourclassmates postings

ACC 410 Week 1 DQ 2 Audit Reports

For more course tutorials visit

www.acc410.com

Audit Reports. Evaluate the following question: If a CPA firm

completes a nonpublic company audit of Adam Companys financial
statements following IACPA generally accepted auditing standards and
is satisfied with the results of an audit, an unmodified report may be
issued. On the other hand, if no audit is performed of the current years
financial statements, but the CPA firm has performed satisfactory audits
in prior years, has confidence in the management of the company, and
makes a quick review of the current years financial statements, a
qualified report may be issued. Do you agree? Give reasons to support
your answer. Do not forget to show the necessary steps and explain how
you attained that outcome.

ACC 410 Week 2 Assignment Analytical Procedures

For more course tutorials visit

www.acc410.com

Analytical Procedures. In a 2-3 page paper, complete the case below and
submit to instructor. Review the income statement for Uden Supply
Company and answer the following:
a. Describe the purpose of analytical procedures performed in the
planning stage of the audit.
b. Uden Supply has projected its 2004 gross profit at 31% of sales
despite expectation for some shrinkage in margins. On the basis of
Uden's operating performance in years 2001 - 2003 project your best
guess for 2004. Project 2004 based on the incremental changes for each
line item over the last three years.
c. Udens unaudited financial statements for the current year show a 31
percent gross profit rate. Assuming that this represents a misstatement
from the amount that you developed as an expectation, calculate the
estimated effect of this misstatement on net income before taxes for
20X4.
d. Indicate whether you believe that the difference calculated in part (c)
is material. Explainyouranswer. (50-100 words).
Comparative income statement information for Uden Supply Company
is presented in the accompanying table. UDEN SUPPLY COMPANY
ComparativeIncomeStatement
Years Ended December 20X1, 20X2, and 20X3
(Thousands)
20X1 Audited 20X2 Audited 20X3 Audited 20X4 Expected
Sales 8,700 9,400 10,100
Costofgoodssold 6,000 6,500 7,000
Grossprofit 2,700 2,900 3,100
SalesCommissions 610 660 710
Advertising 175 190 202
Salaries 1,061 1,082 1,103
Payrolltaxes 184 192 199
Employeebenefits 167 174 181
Rent 60 61 62
Depreciation 60 63 66
Supplies 26 28 30
Utilities 21 22 23
Legalandaccounting 34 37 40
Miscellaneous 12 13 14
Interestexpense 210 228 240
Netincomebeforetaxes80 150 230
Incomestaxes 18 33 50
Netincome 62 117 180

ACC 410 Week 2 DQ 1 Balance Sheet Verification

For more course tutorials visit

www.acc410.com

Balance Sheet Verification. The best means of verification of cash,

inventory, office equipment, and nearly all other assets is a physical
count of the units; only a physical count gives the auditors complete
assurance as to the accuracy of the amounts listed on the balance sheet.
Evaluate this statement. Remember to complete all parts of the
problems. Do not forget to show the necessary steps and explain how
you attained that outcome. Respond to at least two of your classmates
postings

ACC 410 Week 2 DQ 2 Accounting Principles

For more course tutorials visit

www.acc410.com

Accounting Principles. Discuss what is meant by the phrase shopping

for accounting principles. What mechanisms have served to prevent
this practice by management? Remember to complete all parts of the
problems. Do not forget to show the necessary steps and explain how
you attained that outcome

ACC 410 Week 3 Assignment Internal Control Case

For more course tutorials visit

 www.acc410.com

Internal Control Case. Complete Case 18-37 (p. 724-725) and submit
to instructor. For each of the following independent cases state the
highest level of deficiency that you believe the circumstances represent--
a control deficiency, a significant deficiency, or a material weakness

ACC 410 Week 3 DQ 1 Audit Programs

For more course tutorials visit

www.acc410.com

Audit Programs. All experienced auditors would design exactly the

same audit program for a particular audit engagement. Do you agree?
Explain. Remember to complete all parts of the problems. Do not forget
to show the necessary steps and explain how you attained that outcome

ACC 410 Week 3 DQ 2 Internal Control Procedures

 For more course tutorials visit
www.acc410.com

Internal Control Procedures. Describe what is meant by a walk-

through. Must walk-throughs be performed during audits of internal
control over financial reporting? May the client perform a walk-through
and the auditors then review the clients work? Remember to complete
all parts of the problems. Do not forget to show the necessary steps and
explain how you attained that outcome

ACC 410 Week 4 Critical Thinking Quiz

For more course tutorials visit

www.acc410.com
ACC 410 Week 4 Critical Thinking Quiz

ACC 410 Week 4 DQ 1 Legal Case

For more course tutorials visit

www.acc410.com
Legal Case. Compare the rights of plaintiffs under common law with
the rights of persons who purchase securities registered under the
Securities Act of 1933 and sustain losses. In your answer, emphasize the
issue of who must bear the burden of proof. Remember to complete all
parts of the problems. Do not forget to show the necessary steps and
explain how you attained that outcome.

ACC 410 Week 4 DQ 2 Ethics Case

For more course tutorials visit

www.acc410.com

Ethics Case. Harris Fell, CPA and member of the AICPA, was engaged
to audit the financial statements of Wilson Corporation. Fell had half-
completed the audit when he had a dispute with the management of
Wilson Corporation and was discharged. Hal Compton, CPA, was
promptly engaged to replace Fell. Wilson Corporation did not
compensate Fell for his work to date; therefore, Fell refused to allow
Wilson Corporations management to examine his working papers.
Some of the working papers consisted of adjusting journal entries and
supporting analysis. Wilson Corporations management had no other
source for this information. Did Fell violate the AICPA Code of
Professional Conduct? Explain fully. Remember to complete all parts of
the problems. Do not forget to show the necessary steps and explain how
you attained that outcome

ACC 410 Week 5 Assignment Audit Report

Modifications Paper

For more course tutorials visit

www.acc410.com

Audit Report Modifications. Complete problem below. List a represents

the types of opinions the auditor ordinarily would issue and List B
represents the report modifications [if any] that would be necessary.
Select as the best answer for each situation [items 1 to 6] the type of
opinion and modifications, if any, the auditor would normally select.
The types of opinions in List A and the report modifications in List B
may be selected once, more than once, or not at all. The paper should be
2-3 pages.
Problem:
Items 1 through 6 present various independent factual situations an
auditor might encounter in conducting an audit. For each situation
assume:
Assume:
The auditor is independent.
The auditor previously expressed an unqualified opinion on the prior
years financial statements.
Only single-year (not comparative) statements are presented for the
current year.
The conditions for an unqualified opinion exist unless contradicted in
the factual situations.
The conditions stated in the factual situations are material.

No report modifications are to be made except in response to the

factual situation.
Situations:
1. In auditing the long-term investments account, an auditor is unable to
obtain audited financial statements for an investee located in a foreign
country. The auditor concludes that sufficient appropriate audit evidence
regarding this investment cannot be obtained.
2. Due to recurring operating losses and working capital deficiencies, an
auditor has substantial doubt about an entitys ability to continue as a
going concern for a reasonable period of time. However, the financial
statement disclosures concerning these matters are adequate.
3. A principal auditor decides to take responsibility for the work of
another CPA who audited a wholly owned subsidiary of the entity and
issued an unqualified opinion. The total assets and revenues of the
subsidiary represent 17 percent and 18 percent, respectively, for the total
assets and revenues of the entity being audited.
4. An entity issues financial statements that present financial position
and results of operations but omits the related statement of cash flows.
Management discloses in the notes to the financial statements that it
does not believe that statement of cash flows to be a useful financial
statement.
5. An entity changes its depreciation method for production equipment
from straight-line to a units-of-production method based on hours of
utilization. The auditor concurs with the change, although it has a
material effect on the comparability of the entitys financial statements.
6. An entity discloses certain lease obligations in the notes to the
financial statements. The auditor believes that the failure to capitalize
these leases is a departure from generally accepted accounting
principles.

Required:
List A represents the types of opinions the auditor ordinarily would issue
and List B represents the report modifications (if any) that would be
necessary. Select as the best answer for each situation (items 1 through
6) the type of opinion and modifications, if any, the auditor would
normally select. The types of opinions in List A and the report
modifications in List B may be selected once, more than once, or not at
all.
(AICPA, adapted) List A List B
TypesofOpinions ReportModifications
A. An "except for" qualified opinion H. Describe the circumstances in
a explanatory paragraph preceding the opinion paragraph without
modifying the three standard paragraphs.
B. Anunqualifiedopinion I. Describe the circumstances in an
explanatory paragraph following the opinion paragraph without
modifying the three standard paragraphs.
C. Anadverseopinion J. Describe the circumstances in an explanatory
paragraph preceding the opinion paragraph, and modify the opinion
paragraph.
D. A disclaimer of opinion K. Describe the circumstances in an
explanatory paragraph following the opinion paragraph, and modify the
opinion paragraph.
E. Either an "except for" qualified opinion or an adverse opinion. L.
Describe the circumstances in an explanatory paragraph preceding the
opinion paragraph, and modify the scope and opinion paragraphs.
F. Either a disclaimer of opinion or an "except for" qualified opinion.
M. Describe the circumstances in an explanatory paragraph
following the opinion paragraph, and modify the scope and opinion
paragraphs.
G. Either an adverse opinion or a disclaimer of opinion N. Describe the
circumstances within the scope paragraph without adding an explanatory
paragraph.
O. Describe the circumstances within the opinion paragraph without
adding an explanatory paragraph.
P. Describe the circumstances within the scope and opinion paragraphs
without adding an explanatory paragraph.

ACC 410 Week 5 DQ 1 Audit Reporting

For more course tutorials visit

www.acc410.com

Audit Reporting. Wade Corporation has been your audit client for
several years. At the beginning of the current year, the company changed
its method of inventory valuation from average cost to last in, first out
(LIFO). The change, which had been under consideration for some time,
was in your opinion a logical and proper step for the company to take.
What effect, if any, will this situation have on your audit report for the
current year? Remember to complete all parts of the problems. Do not
forget to show the necessary steps and explain how you attained that
outcome

ACC 410 Week 5 DQ 2 Audit Reports

 For more course tutorials visit
www.acc410.com

Audit Reports. The auditors do not believe that certain lease obligations
have been reflected in conformity with generally accepted accounting
principles in the clients financial statements. What type of opinion
should the auditors issue if they decide that the exceptions are
immaterial? Material?Very material? Remember to complete all parts of
the problems. Do not forget to show the necessary steps and explain how
you attained that outcome

ACC 410 Week 5 Final Paper Audit Plan Keystone

Computers

For more course tutorials visit

www.acc410.com
The final paper will be based on Appendix 6C Illustrative Audit Case:
Keystone Computers at pages 237-244 in your text. Write, in outline
format but in complete sentences, a 6 to 10 page audit plan. It is
recommended that you look at Figure 18.8 on page 708, which shows
the control objectives related to accounts receivable.

In your audit plan cover the steps necessary to determine if you should
select the client, the internal control procedures which need to be
reviewed, the substantive tests [using accounts receivable a guide], and
the final reporting steps. Based on the actual facts in the case determine
the emphasis you want to place on various accounts. Also reflect back
over your entire accounting program and think about how the accounts
are interrelated. For example, when allowance for doubtful accounts is
credited the offset is to bad debt expense. Therefore one of the steps
should be to trace the debit side of the entry to the balance for bad debt
expense.

Make your comments as specific as possible. Rather than say look for
unusual entries, say look for entries from unusual sources and rounded
amounts with focus on those near an accounting cut off. Use precise
language. Rather than saying you vouched accounts payable, say that
you looked at the item to determine that it was a bona fide business
expense. Remember to focus on the key audit objectives and support
needed after applying the audit risk model.

Remember, the purpose of the Final Paper is for you to culminate the
learning achieved in the course by describing your understanding and
application of knowledge in the field of accounting.

The Final Paper should focus on real life, real time application of topics
covered in this course; the uses you have seen and the uses you can
envision. The paper must be submitted to your instructor no later than
the last day of class.