Grading Summary – Midterm exam questions and answers solution docs 2020 rading

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Grading Summary – Midterm exam questions and answers solution docs 2020 rading Summary These are the automatically computed results of your exam. Grades for essay questions, and comments from your ... instructor, are in the "Details" section below. Date Taken: 1/31/2016 Time Spent: 1 h , 40 min , 36 secs Points Received: 183 / 200 (91.5%) Question Type: # Of Questions: # Correct: Multiple Choice 11 8 Matching 1 1 Short 7 N/A Grade Details - All Questions Page: 1 2 Question 1. Question : (TCO A) Match the following definitions to the appropriate terms. Points Received: 5 of 5 Comments: Question 2. Question : (TCO B) The following is a portion of a qualified audit report issued for a private company. To the shareholders of Tamarak Corporation, We have audited the accompanying balance sheet of Tamarak Corporation as of October 31, 2009, and the related statements of income, retained earnings, and cash flows for the past year. These financial statements are the responsibility of the company's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. The company has included in property and debt in the accompanying balance sheet certain lease obligations that, in our opinion, should be expensed in order to conform with generally accepted accounting principles. If these lease obligations were capitalized, property would be decreased by $4,000,000, long-term debt by $2,000,000, and retained earnings by $180,000 as of October 31, 2009, and net income and earnings per share would be decreased by $180,000 and $0.62, respectively, for the past year. Required: Complete the above qualified audit report by preparing the opinion paragraph. Do not date or sign the report. Points Received: 20 of 20 Comments: Question 3. Question : (TCO C) The following situation involves a possible violation of the AICPA's code of professional conduct. For this situation, (1) determine the applicable rule number from the code, (2) decide whether or not the code has been violated, and (3) briefly explain how the situation violates (or does not violate) the code. Your answer should be set up something like this: Rule # _____ Violation? Yes or No. Provide a one- or two-line explanation. Auditor Tex Gato of the CPA firm Smackey and Smackey, CPAs, enjoyed auditing his favorite client, Super Pup Dog Food, because the client would allow him to take home to his dog a variety of dog food samples that amounted to a year's worth of dog food. Points Received: 10 of 10 Comments: Question 4. Question : (TCO C) The following situation involves a possible violation of the AICPA's code of professional conduct. For this situation, (1) determine the applicable rule number from the code, (2) decide whether or not the code has been violated, and (3) briefly explain how the situation violates (or does not violate) the code. Your answer should be set up something like this: Rule # _____ Violation? Yes or No. Provide a one- or two-line explanation. Howard Cunningham & Co., CPAs, designates its firm as Members of the American Institute of Certified Public Accountants. All of the partners of the firm are CPAs. However, one of the partners has recently chosen to allow her membership to lapse because of personal reasons. Points Received: 10 of 10 Comments: Question 5. Question : (TCO C) Under the provisions of the Sarbanes-Oxley Act of 2002 (SOX), the audit committee of a public company has specific guidelines to which employees must adhere. Discuss some of the mandated features of the audit committee of a public company under SOX. Points Received: 25 of 25 Comments: Question 6. Question : (TCO D) Discuss some of the steps the AICPA and the accounting profession as a whole can and are taking to reduce practitioners' exposure to lawsuits. You answer should provide at least five steps. Points Received: 25 of 25 Comments: Question 7. Question : (TCO F) Match nine of the terms (A–K) with the definitions provided below (1–9). A - Foot B - Compute C - Scan D - Inquire E - Count F - Trace G - Recompute H - Read I - Examine J - Observe K - Compare _____ 1: A calculation done by the auditor independent of the client _____ 2: Addition of a column of numbers to determine if the total is the same as the client's _____ 3: A comparison of information in two different locations _____ 4: A use of the senses to assess certain activities _____ 5: Following details of transactions from original documents to journals _____ 6: A less detailed examination of a document or record to determine if there is something unusual warranting further investigation _____ 7: Obtaining information from the client in response to specific questions _____ 8: A determination of assets on hand at a given time _____ 9: An examination of written information to determine facts pertinent to the audit Points Received: 23 of 25 Comments: Question 8. Question : (TCO G) Discuss the essential activities involved in the initial planning of an audit. Points Received: 25 of 25 Comments: [Show More]

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