Auditing 12th canadian edition

By Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. Intermediate Accounting, 12th Edition , continues to be the number one intermediate accounting resource in the Canadian market. Viewed as the most reliable resource by accounting students, faculty, and professionals, this course helps students understand, prepare, and use financial information by linking education with the real-world accounting environment.

This new edition now incorporates new data analytics content and up-to-date coverage of leases and revenue recognition. The next generation of WileyPLUS for Intermediate Accounting gives instructors the freedom and flexibility to tailor content and easily manage their course in order to keep students engaged and on track.

MaxSold Auctions. Books MaxSold Auctions. Beasley, Joanne Jones Doesn't come with the card, but solutions and testbank should make up for the amount of material that's there and more. Got one report for that class, get it with the book purchase. It was barely used as our professor was relying on slides mostly.

No highlights at all, none! It also has textbook solutions and exam bank, ask me about them. The course was not hard. Categories : Solution manuals , TestBank. Download Free Sample. Good auditing is based on both art and science. Integrated current international standards, improved readability and real-world applications offer a practical and theoretical approach to auditing. Manual solutions provide electronic and soft downloadable products for the selected Textbooks and not the actual hard copy Materials.

There is no need to provide us with your own physical shipping address, instead, we will need only your own email address in which we are going to attach the files for you. We sell potential questions and answers that instructors and teachers based on when making exams and tests. These efforts have resulted in gradually increasing market share for the company. All sales are recorded in the accounting software package used by the company.

The accounting manager reports directly to one of the owners, and there are two other employees in the accounting department. Password controls are used to limit functions that are accessible by employees. For example, only the controller can implement wage rate increases or product price increases which are reviewed and approved by the owner responsible for marketing. Two owners are required to sign cheques, and do so with source documents attached.

Similarly, two owners are required to approve new employees. All manufacturing is outsourced to local producers who work with different materials. For example, a different supplier handles steel mugs versus plastics or glass. Ceramics is rarely used as it is quite breakable, whereas some forms of glass are very durable.

MBL does not hold any inventory, as manufacturing is all done to order. However, as there have been some collection problems from customers, the company has had to go to the maximum of its line of credit, and has no additional borrowing capacity available. It is waiting for the results of the audited financial statements to approach the bank for an increase in its line of credit. Internet sales are prepared via credit card , while sales to distributors are net thirty.

The company has an April year end. Note: Base cannot be calculated using total assets or shareholders equity. If students state the assumption that they have all of the assets, or show the amounts that they have included in the calculation, then they could do a calculation based upon total assets, shown below, but they do not have retained earnings so could not do a base using shareholders equity.

However, they do have a bias towards wanting to understate their income to lower income taxes. How would this bias be implemented in the audit risk model? What is the effect of this on the risks associated with recording of revenue? It increases. How would this fact be dealt with in the audit risk model? The first and second concepts are that a material misstatement should be considered in the context of knowledgeable users and the effect on decision making and that material is relative to circumstances surrounding the decision and nature of the information.

The third concept is. Primarily, it helps businesses select plants and manage the plants. It also has regular maintenance contracts such as watering, weeding, and mowing. In the winter, it has some contracts for managing the indoor plants of shopping malls, and does snow clearing to help boost that low income season. Joey, the majority shareholder of GreenGrow is ecstatic. He has managed to come in as the low bidder for a new type of contract.

He bid on the construction of a track for the track and field area of a local university. A piece of land on the north end of the university is being cleared and GreenGrow will be leveling the land and placing a bed of crushed stone for the track. Joey has just the right person to be in charge.

Jack has previous experience working as an assistant on a road crew and knows how to use the surveying equipment needed to keep the track level. This is a big contract, and will increase revenues by one third!

The company generally does its own programming, although some software was acquired as a software package. In addition, a software package was purchased for customer relationship management, which will be modified by the programming staff.

Procedures for implementing programs vary by department. All major changes are approved by the Management Information Systems steering committee. The committee is also given a list of the maintenance changes that are planned in the coming year. Some departments request that the data processing department handle testing, while other users are rather picky and want to do their own testing. Requirements are generally prepared in writing, although small maintenance changes may be handled verbally.

Answer: Inherent risks for programming errors are high. This means that there could be incorrect or unauthorized program changes, particularly for those departments where the information systems department handles all of the testing. During the audit, Silka decided to change materiality. A valid reason for this would be.

Normally, the most important base for deciding what is material, because it is regarded as a critical item of current period information for users, is. Which one of the following errors would be considered more important by the auditors?

What is the performance materiality? Step 1. Set materiality. This is the combined amount of misstatements in the financial statements that would be considered material. This decision is made in the planning stage of the audit. Step 2. Establish performance materiality. Materiality is adjusted for the effect of net anticipated misstatements to determine materiality available for unanticipated misstatements. This is done during the planning stage. Step 3. Allocate planning materiality to segments not commonly done.

In this step, some auditors allocate the preliminary judgment about materiality to the balance sheet accounts. This allocation is performed in the audit planning stage. Step 4. Estimate total misstatement in segment. In this step, the auditor projects the sample results to the population. An allowance for sampling risk is also calculated. This would be performed after the substantive tests for each account are completed.

Step 5. Estimate the combined misstatement. In this step, the projected errors for each account are added, along with total sampling error, to calculate the combined misstatement. This would be performed after all substantive tests have been completed. Step 6. Compare combined estimated misstatement with materiality. If the combined estimated misstatement is less than or equal to materiality, then the auditor concludes the financial statements are fairly presented.

This would be performed after all substantive tests have been completed, in the final review stage of the audit. It is now run by Mr. LLL owns a small building downtown, where the offices of the business are located. Unused office space is rented out to other commercial tenants. Betsy was a classmate of yours at York University, and you have kept loosely in touch over the years.

LLL has a small loan that is used to cover blips in working capital. The company has two salespeople. Most loans are received from stores throughout the city, with whom LLL has standing agreements. If customers require financing, they fill in an application at the store, which is faxed to LLL for approval. LLL will reply within two business days. The company has been profitable for many years. Log in. Click to enlarge. Next product. SKU: dc82dc9fc Category: Uncategorized.

B ensures that there are no errors contained in the financial statements. D is completed on time and within budget. B increase detection risk to a satisfactory level. C detect errors in internal controls so that control risk can be set higher. D detect material misstatements to the targeted level of assurance. When A the auditor has finished documenting internal controls. B the client risk profile has been completed. C risk assessments are complete.

D inherent risk information has been gathered. B enable the auditor to obtain sufficient appropriate audit evidence. C properly design the contents of the engagement letter. D keep audit risk as low as possible. B audit risk. C statistical risk. D financial risk. C locating related parties that need to be disclosed. D deciding whether fraud or illegal acts have taken place.

A information technology connects these organizations, so that they affect each other B information technology provides rapid information about organizations C there is increased importance of human capital and other intangible assets D joint ventures and strategic alliances affect client business risks Answer: A Diff: 3 Type: MC Page Ref: Learning Obj.

A client that A is a small manufacturer of metal and plastic parts, with steady profits, in business for 15 years.

B is developing a computer game, expected to be ready in three years, and has no other products. C has fifteen retail outlets in the clothing industry, with mid-range pricing, appealing to a large population sector.

D consists of a partnership of ten lawyers, operating out of three different cities in one province. If the auditor is looking at a client in the fashion clothing industry, a risk specific to the industry would be A the high risk of poor governance and management oversight.

B the high risk of defective products. C the high risk of obsolescence of their inventory. D the volatility in the stock market with regards to common stock.

C detection risk must be set in accordance with the needs of the industry as well as of the individual client. D organizations like city governments have unique accounting requirements that could be complex. A custom-designed operational or strategic information systems B use of packaged software to process sales both locally and across Canada C use of customer relationship management systems to manage sales information D numerically-controlled equipment used in the manufacturing process Answer: A Diff: 3 Type: MC Page Ref: Learning Obj.

A use of data communications such as the Internet to transfer transaction data B use of packaged software to process sales both locally and across Canada C use of customer relationship management systems to manage sales information D numerically-controlled equipment used in the manufacturing process Answer: A Diff: 3 Type: MC Page Ref: Learning Obj.

A electronic data interchange systems for purchase orders, sales invoices and payments B use of packaged software to process sales both locally and across Canada C use of customer relationship management systems to manage sales information D numerically-controlled equipment used in the manufacturing process Answer: A Diff: 3 Type: MC Page Ref: Learning Obj.

By doing the tour, Steve will A be better able to identify control risks. C be able to gather audit evidence on operational efficiencies. D Steve should not be taking a tour alone with the owner as this could compromise his independence. With regards to this transaction, the auditors should A request a confirmation from Simonique that the transaction took place. B inspect the textile received in the warehouse to ensure that the amount sent equals the amount ordered.

D verify that the business relationship is disclosed in the financial statements. Brandon should A inform the audit committee. B qualify the audit report. C discuss this issue with the management of Michum. D reduce materiality to increase the likelihood of discovering other undisclosed related party transactions.