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Chapter 1-7 – Tugas Kelompok Kelas B

Soal Chapter 7
The following are examples of audit procedures:
1. Obtain information about internal control by requesting the client to fill out questionnaire.
2. Trace postings from cash disbursements journal to the general ledger.
3. Watch employees count inventory to determine whether company procedures are being
4. Examine a piece of equipment to make sure that a major acquisition was actually received
and is in operation.
5. Calculate the ratio of sales commission expense to sales as a test of sales commissions.
6. Examine corporate minutes to determine the authorization of the issue of bonds.
7. Obtain a letter from management stating that there are no unrecorded liabilities.
8. Review the total of repairs and maintenance for each month to determine whether any
month’s total was unusually large.
9. Obtain a written statement from a bank stating that the client has $15,671 on deposit and
liabilities of $500,000 on a demand note.
Classify each of the preceding items according to the eight types of audit evidence:
(1) physical examination, (2) confirmation, (3) documentation, (4) analytical procedures,
(5) inquiries of the client, (6) recalculation, (7) reperformance, and (8) observation.
Soal Chapter 5
Barbara Whitley had great expectations about her future as she sat in her graduation ceremony in May
2010. She was about to receive her Master of Accountancy degree, and next week she would begin her
career on the audit staff of Green, Thresher & Co., CPAs.
Things looked a little different to Barbara in February 2011. She was working on the audit of Delancey
Fabrics, a textile manufacturer with a calendar year-end. The pressure was enormous. Everyone on the
audit team was putting in 70-hour weeks, and it still looked as if the audit wouldn’t be done on time.
Barbara was doing work in the property area, vouching additions for the year. The audit program
indicated that a sample of all items over $20,000 should be selected, plus a judgmental sample of smaller
items. When Barbara went to take the sample, Jack Bean, the senior, had left the client’s office and
couldn’t answer her questions about the appropriate size of the judgmental sample. Barbara forged
ahead with her own judgment and selected 50 smaller items. Her basis for doing this was that there were
about 250 such items, so 50 was a reasonably good proportion of such additions.
Barbara audited the additions with the following results: The items over $20,000 contained
no misstatements; however, the 50 small items contained a large number of misstatements. In fact, when
Barbara projected them to all such additions, the amount seemed quite significant.
A couple of days later, Jack Bean returned to the client’s office. Barbara brought her work to Jack in order
to apprise him of the problems she found and got the following response:
“Gosh, Barbara, why did you do this? You were only supposed to look at the items over $20,000 plus 5 or
10 little ones. You’ve wasted a whole day on that work, and we can’t afford to spend any more time on it. I
want you to throw away the schedules where you tested the last 40 small items and forget you ever did
When Barbara asked about the possibility audit adjustment regarding the small items, none of which
arose from the first 10 items, Jack responded, “ Don’t worry, it’s not material anyway. You just forget it;
it’s may concern, not yours.”
a. In what way is this ethical dilemma for Barbara
b. Use the six-step approach discussed in the book to resolve the ethical dilemma.

Soal Chapter 3

including assessing whether the firm has the technical competence to complete the engagement. and the results of its operations for the year then ended in conformity with generally accepted auditing standards. We conducted our audit in accordance with generally accepted accounting standards. Bellamy declined to disclose this essential data in the footnotes to the financial statements. 2018. Each office of the firm shall be visited at least annually by review persons selected by the director of accounting and auditing. c. has completed the audit of the financial statements of Bellamy Corporation as of and for the year ended December 31.Bellamy issued debentures on January 31. The review includes consultation with predecessor auditors. Patel. . We believe that our audits provide a reasonable basis for our opinion. 2014. . The change is discussed in footnote 12. In our opinion.Patel was unable to perform normal accounts receivable confirmation procedures. Patel also audited and reported on the Bellamy financial statements for the prior year. This is to provice adequate technical reference material to conduct appropriate accounting and auditng research regarding the audit client. Bellamy will be required to pay a substantial amount of cash. All new clients are approved by the firm management committee. and other technical information. which might require the sale of certain fixed assets. All potential new clients are reviewed before acceptance. Patel drafted the following report for 2014. Indicate what kind of audit report that Patel is drafted and whether it is appropriate. SEC. We have audited the balance sheet and statements of income and retained earnings of Bellamy Corporation as of December 31. . Patel is satisfied with Bellamy’s justification for making the change. 2014. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of misstatement. tax. but alternative procedures satisfied Patel as to the existence of the receivables. 2014. b. CPA (Signed) Other Information . including industry data. Identify the underlying applicable element of quality control from Table 2-4 Each firm professional has online password access through the firm’s Internet Web site to electronic reference materials on accounting. 2013. auditing.Bellamy does not wish to present a statement of cash flows for either year. The funds obtained from the issuance were used to finance the expansion of plant facilities. a. and background checks. CPA. Indicate part of audit component and the defficiencies on Patel’s draft (to answer part b. organize your answer as follows: Part of Audit Report Patel’s Draft Deficiencies Soal Chapter 2 For each of the following action and procedurestaken from the quality control manual of a CPA firm. The litigation and the possible effects have been properly disclosed in footnote 11. Procedures to be undertaken by the reviewers are illustrated by the office review program. If the case is settled in favor of the plaintiff. Describe your reason.Patel. in the amount of $10 million.Bellamy Corporation is the defendant in a litigation. Bellamy changed its method of accounting for long-term construction contracts and properly reflected the effect of the change in the current year’s financial statements and restated the prior year’s statements. applied on a basis consistent with those of the preceding year.Bellamy is presenting comparative financial statements. . . b. The debenture agreement restricts the payment of future cash dividends to earnings after December 31. the financial statements referred to above present fairly the financial position of Bellamy Corporation as of December 31. . the outcome of which is highly uncertain.During 2014. Required: a.

an effort is made to involve professional staff at appropriate levels in the accounting and auditing decisions. e. The firm’s mission statement indicates its commitment to quality. At the end of the audit engagement. Individual partners submit the nominations of those persons whom they wish to be considered for partner. a close relative serving a client in a decision-making capacity) not otherwise disclosed that might be adverse to the firm’s best interest. and judgment. an individual must have exhibited a high degree of technical competence. At the conclusion of practice office reviews. apparent accounting and auditing deficiencies are summarized and reported to the firm’s director of personnel. i. the engagement management software will not allow archiving of the engagement file until all audit program steps have been electronically signed. Through our continuing employee evaluation and counseling program and through the quality control review procedures as established by the firm. and must have a desire to help the firm progress through the efficient dispatch of the job responsibilities to which he or she is assigned. association. g. At all stages of any engagement. Each audit engagement must include a concurring partner review of critical auditdecisions. No employee will have any direct or indirect financial interest.d. Various approvals of the manager or senior accountant are obtained throughout the audit. educational needs are reviewed and formal staff training programs modified to accommodate changing needs. Audit engagement team members enter their electronic signatures in the firm’s engagement management software to indicate the completion of specific audit program steps. To become a partner. h. and this commit ment is emphasized in all staff training programs j. must possess integrity. or rela tionship (for example. motivation. . f.