PRELIMS

In addressing the valuation assertion for various liab acc, the auditor most likely to perform
Perform analytical procedures

In auditing Prep Ins, the auditor is most likely to perform which of the ff
Recompute ins exp for the year under audit

The aud selectects a sample from the vouchers pay reg and traces the items to underlying
Recorded oblig were occured

The aud normal primary concern with auditing liab is

The liab are not materially understated

Which of the ff proc related to pred ins is the auditor least likely to perf
Confirm premium rates with an independent ins broker

The audit proc used to verify accrued liab differ from thise used to verify acc pay bc
Accrued liab usually oertain to services of a cont nature, while acc pay are the result of
competed transactions

Which of the ff is likely to be included in a acc pay conf

An itemized state of amts owed at the balance sheet date

Which of the ff is NOT used when testing acc pay

Cash receipts records

In testing prep ins, controls over which of the ff are of the least concern to the aud
The dep, which has physical custody to the assets incurred

An exam of acc listed in the AP subs ledger is primarily not designed to

Locate unrec liab, which existed at the BSD

During the course of an audit, an auditor observes that the rec in exp seems exc in rel to the bal
in LTD. This obs could lead the auditor to suspect that
LTD is understated

Agamata Corp
Int Pay, Dec 31 2006
143,000

por NP-bank rep under CL, Dec 31 2006

300,000
TCL as of Dec 31 2006
3,938,000

TNCL as of Dec 31 2006

1,960,000

Everland Corporation
Adj Bal BP, Dec 31 2007
5,600,000

Unamort BP, Dec 31 2007

224,000

Total Bond Int Exo 2007

731,600

Gain or Loss on BRedemp

7,600 loss

CA of bonds, Dec 31 2007

5,824,000

Poe Company
Adj Bal BP, Dec 21 2002
4,000,000

Adj Bal TB, Dec 31 2002

540,000

Unamort Bal BP, Dec 31 2002

140,000

TB Int Exp, 2002

457,250

Loss is Acq TB
4,750

CV BP Dec 31 2002
3,640,000

RMV Finance Co.

1,400,000
56,000
1,900 loss

Horizon Company
51,600

MIDTERMS

The client declared a 3 for 1 stock split during the year. The aud should
Examine BOD minutes for auth

A cor may obtain treasury shares

Because they are needed for emp stock option plans

When no in

PREFINALS

Lifer Company (2008)

TCA- 17,510

TCL - 10,790

TL SHE - 125,190

Cash - 1,200

Land - 13,600

Gloria Corporation

TA (2005) - 30,000 Over

TL (2005) - 91,000 Under

WC (2006) - 14,600 Over

NCA (2006) - 42,000 Over

Correction (2005) - 54,000 deduction

Mary Company

Prepaid - 6,000 Over

Accrued Exp - 4,000 Over

All errors (2003) - 20,000 Under

All errors (2004) - 14,000 Over

All errors (2005) - 12,000 Over

Lacson Company

Adjusted Sales (2005) - 1,783,310

Net effect error COS (2005) - 4,300 Over

Errors Supplies (2004) - 70 Over

ANI (2004) - 115, 646

ANI (2005) - 90,399

PRTC Company

COGS - 307,000

Dep Exp. 27,600

Loss BP - 3,000

NI - 68,800