LSU ACCT 3222 Chpt 12 & 13 - Final Exam with complete solutions |Latest 2024/2025
8 views 0 purchase
Course
LSU ACCT 3222
Institution
LSU ACCT 3222
LSU ACCT 3222 Chpt 12 & 13 - Final
Exam with complete solutions.
What assertion is most important in auditing payables and liabilities? ️
completeness
What assertion is tested when performing initial procedures for A/P
balances? ️ valuation
4 initial procedures for A/P ️ 1. agree BB to ...
LSU ACCT 3222 Chp t 12 & 13 - Final Exam with complete solutions. What assertion is most important in auditing payables and liabilities? ✔️ completeness What assertion is tested when performing initial procedures for A/P balances? ✔️ valuation 4 initial procedures for A/P ✔️ 1. agree BB to PY 2. obtain A/P TB 3. scan for unusual transactions 4. agree sub ledger to GL In auditing which accounts are substantive procedures optional? ✔️ payables/ liabilities CASH (not meaningful bc of high fluctuation) 3 test of details of transactions of transactions for A/P ✔️ 1. Vouch 2. Perform cutoff tests 3. Perform search for unrecorded liabilities Which of the test of details of transactions for A/P is more powerful in testing completeness? ✔️ Perform search for unrecorded liabilities During cutoff testing for A/P, which transactions regarding shipment should the client record if they are the purchaser? What if they are the seller? ✔️ Purchaser: if FOB shipping point, anything shipped before or on YE if FOB destination, client should record anything received before or on YE Seller: if FOB shipping point, ownership transfers if shipped before/on YE if FOB destination, client still owns anything still in transit on YE 3 procedures done when performing the search for unrecorded liabilites during the test of details of transactions? ✔️ 1. inspect subsequent cash disbursements 2. inspect recently recorded liabilities after YE 3. inspect outstanding/unmatched receiving reports/PO at YE or early Jan What assertion does the test of details of balances test? ✔️ existence - not commonly done (completeness is most important) When should the test of details of balances to confirm A/P be performed? (2) ✔️ - if concerned abt overstatement of liabilities - if client has weak IC over A/P and purchasing During test of details of balances of A/P , what type of confirmations should be used? ✔️ positive confirmations & leave amount blank During test of details of balances of A/P, which clients should confirm? ✔️ send to small or zero acct balances to check for understatement 3 ways of auditing other accrued liabilities (warranties, payroll, etc) ✔️ - recalc mngmt's estimates to check if reasonable - inspect supporting documentation - confirmation (if applicable) 5 initial procedures when auditing CASH: ✔️ 1. agree BB to PY 2. obtain cash TB / schedules 3. scan for unusual items 4. check mathematical accuracy 5. agree sub ledger to GL 2 procedures in test of details of transcations when auditing CASH ✔️ - cutoff testing -bank transfer schedules (kiting)
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller AcademiaExpert. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.99. You're not tied to anything after your purchase.
