Auditing

Unit:  Auditing and Attestation (AUD)

Sun, 8/7/16

Numeric

125

0

500-1,000 words


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Assignment Details

 

The BakFirn Corporation, a publicly traded firm, has contracted with YOUCPA, your public accounting firm, for an audit. The BakFirn Corporation manufactures specialty construction tools. The tools are used in the unique construction of homes, warehouses, and multiunit dwellings. The prices range from $1,000 to $5,000 per unit.

During the audit, the audit team has determined the risk assessment of the client. Consequently, the audit has to respond to the assessed risks of material misstatement at the financial statement and assertion levels. The YOUCPA audit team has asked you, the auditor, to prepare a list of actions that you will take to assess the audit risk.

The following information is available in the year just finished:

  • The BakFirn Corporation end-of-year is 12/31/20XX.
  • Sales for the previous year were $10,000,000. Sales this year are coming in at $9,500,000.
  • The firm is in the construction machine industry, making specialty tools.
  • Account receivable days sales outstanding (DSO) has been averaging 90–120 days. The year before, it was 80–90 days.
  • Inventory turns have decreased from 3 to 2 per year.
  • Account receivable and inventory make up 80% of total assets.
  • Internal auditing has been reduced by one person to reduce costs.
  • An initial test of controls in cash receipt indicated a lack of following procedures.
  • The construction industry is in the third year of a downturn. It is forecasted to last two more years.
  • The audit team has defined materiality to be focused on account receivable and inventory with $3,000 being the initial threshold. Net income for last year was $1,000,000.
  • Inventory at the end of the year was $2,500,000.
  • Account receivable at the end of the year was $2,740,000, or 100 DSO.
  • The previous auditors did not disclose any fraud or any management issues at the meeting with BakFirn and YOUCPA. The reason for the auditor change was explained as a costs reduction program.

Assignment Guidelines:

  1. Audit Assessment Steps:
    1. What is the initial audit risk? High, medium or low?
    2. What factors made you decide on this level?
  2. Audit Plan Assertions
    1. What would you include in the audit plan, and why?
    2. Would you plan a test of controls or substantive tests? Why or why not?
    3. Would these tests make a difference in the nature, timing, and extent of audit procedures? If so, how?
  3. Audit Plan Evidence
    1. Would you plan to put reliance on prior-year evidence? Why, or why not?
    2. Would your evidence come from observation, analytical procedures, or other means? Explain your reasoning.
    3. Would the evidence prove or disprove an assertion on the reliance of a specific balance sheet account or financial statement account? Explain your reasoning.

 

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PRG/211 Individual: Programming Fundamentals Paper

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Explain if it is possible to implement and solve this problem programmatically. Think on the fact that computers can only do three things, Input Data, Process the Data and provide desired and needed Outputs.  Computers can not do human tasks or interact on their own with other systems that are not designed to be interfaced programmatically.

 

 

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Math, Calculus Questions

math homework problems ranging from algebra to calculus..need to see formulas written out with answers..thanks

 

 

What is three raised to the power of four? (34)

 

 

 

What is seven raised to the power of negative one fourth? (7-1/4)

 

 

 

 

 

What is the common log of 10,000?

 

 

 

 

 

What is the natural log of 10,000?

 

 

 

 

What is the anti-log (base 10) of 4?

 

 

 

 

 

What is the anti-log (base “e”) of 9.210340?

 

 

 

 

 

Consider the equation for a straight line Y = mx + b, where m is the slope and b is the intercept. If the slope is 3, x is 15, and the intercept is 5; what is Y?

 

 

 

 

 

 

Consider the equation Y = m(x + b). If m is 3, x is 15, and b is 5; what is Y?

 

 

 

 

 

 

 

Consider the equation for a straight line Y = mx + b, where m is the slope and b is the intercept. If the slope is negative 3, x is 15, and the intercept is 5; what is Y?

 

 

 

 

 

 

 

 

 

Consider the equation for calculating indirect rates – Rate (R) = Expense Pool (P) ÷ Allocation Base (B), R=P/B, you learned in a prior pricing course.  A contractor is proposing an engineering overhead rate of 175% using an allocation base of $145M in direct engineering labor cost (dollars). We want to find out the amount of engineering overhead expense pool that the contractor is contemplating.

 

Our formula R=P÷B is set up to solve for Rate (R), but we want to solve for the Pool (P)!

 

ANSWER CHOICES

 

Subtract both sides of the equality by B.

 

 Add B to both sides of the equality.

 

 Divide both sides of the equality by B.

 

 Multiply both sides of the equality by B

 

 

 

Consider the equation for calculating indirect rates – Rate (R) = Expense Pool (P) ÷ Allocation Base (B), R=P/B, you learned in a prior pricing course. A contractor is proposing an engineering overhead rate of 175% using an allocation base of $145M in direct engineering labor cost (dollars). We want to find out the amount of engineering overhead expense pool that the contractor is contemplating. What is the amount of engineering overhead in millions of dollars ($M) the contractor should be contemplating?  

 

 

 

 

 

 

 

 

 

Consider the Learning Curve, Unit Formulation, formula: YX = A(X)B, where YX is the cost of Unit “X”, A represents the cost of the first production unit, X is the unit’s number (serial) since the start of production, and B is an exponent corresponding to the Learning Curve percentage. You have been asked to estimate the cost of the 26th unit (Y26) on an 80% Learning Curve where B = -0.321928. You have been told that data does not exist regarding the cost of the first unit (A), but it is known that the 25th unit (Y25) cost $7,500 to produce on this same 80% curve.  

 

The basic formula, YX = A(X)B, set up to solve for the 26th unit, becomes  Y26 = A(26)-0.321928. You immediately find you first REALLY need the value for A. But the general equation is set up to solve for YX, not A; and the A on the right side of the equality is being multiplied by (X)B. Do you recall how to rearrange any formula to solve for another variable? In this case, to undo the multiplication on the right side of the equality, would you (add, subtract, multiply, or divide) both sides by XB to find an equation that solves for A? Once you have rearranged this formula to solve for A, also recall you have been given the cost of another unit (the cost of the 25th unit, Y25=$7,500). Using this information you should next be able to solve for A, and then solve for the cost of the 26th unit.

 

With these additional instructions, what is your estimate, rounded to whole dollars, for the cost of the 26th unit on an 80% curve, where B=-0.321928, and the cost of the 25th unit is $7,500?

 

 

 

 

 

Given a series of values, the “central tendency” of the data can be described by the:

 

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Mean, variance, and standard deviation.

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Mean, median, and mode.

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Median, absolute deviation, and the MAD.

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Variance, standard deviation, and coefficient of variation.

 

 

 

Consider this series of historically observed prices properly normalized for quantity and economics, ranked from smallest to largest: $100; $100; $104; $110; $120; and $132. In the following order, what are the values for the mean, median, and mode?

 

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$100; $107; $111.

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$107; $100; $100.

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$111; $107; $100.

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$100; $100; $107.

 

 

 

There are various measures used to describe the variability or dispersion in a data series.  What is the range of the following prices: $100; $100; $104; $110; $120; and $132?

 

 

 

 

 

 

 

What is the variance for the following prices: $100; $100; $104; $110; $120; and $132?

 

 

 

 

 

What is the standard deviation for the following prices: $100; $100; $104; $110; $120; and $132?  (Round your answer to two decimal places.)

 

 

 

 

 

What is the coefficient of variation (CV) for the following prices: $100; $100; $104; $110; $120; and $132?  (Enter your answer as a percentage, without the percentage symbol, and rounded to two decimal places.)

 

 

 

 

 

Consider yourself to be an estimator working for a contractor. You are informed that your fixed cost is $1.2M, variable cost is $0.125M/unit, and projected sales/production is 120 units. Assuming sales of all 120 units, what is the minimum price per unit you can charge without suffering a loss (i.e. that price where you would break even to cover your total cost and not make any profit)? (Round and express in whole dollars, not millions, using the $ sign.)

 

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Consider yourself to be a buyer. The contractor is reluctant to bear the expense of producing (or making up) detailed data. They have, however, submitted their total cost to produce 120 units last year was $20M, and the year before their total cost to produce 100 units was $17.5M. What is the contractor’s fixed cost? (Express in dollars million, using the $ sign and a capital “M”, rounding to three decimal places – e.g. $6.275M.)

 

 

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the measure of the angles of a triangle are in the ratio 3:4:5 find the measuremnt of each angle

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