Posted: December 16th, 2022

ACT480 Section : O1 Homework

Homework (15%)
Semester : Summer-II Year : 2019/2020
Course Title : Auditing
Course Code : ACT480 Section : O1
Instructor : Dr. Gökberk Can
Instructions Submit your assessment answers online through Moodle (with a cover
page that incudes your name, ID, and the Section.)
Due Date September 6, 2020 – 23:59
To be completed by the student
Students Name : Student ID:
Grading Scheme
Question Earned Points Max. Points Question Earned Points Max. Points
1 28
2 72
3
Total Earned Points Total Available Points Instructor Signature
100
ACT480: Auditing Homework Spring-2 2020
Question 1 – 28 Points
Account Name Cycle Account Name Cycle
Accounts Receivable Sales Revenue
Accrued Income Tax Salaries Payable
Advertising Expense Retained Earnings
Bad Debt Expense Prepaid Expenses
Buildings Notes Payable
Cost of goods sold Dividends
Dividends Payable Allowance for Doubtful Accounts
Income Tax Accumulated Depreciation
Land Accrued Payroll Tax
Raw Materials Accrued Interest
Required
1. Listed below are several accounts listed from a company’s trial balance. Next to each account
put the letter corresponding to the transaction cycle used to audit the account. (1 point per cell)
A = Acquisition and payment cycle
C = Capital acquisition and repayment cycle
I = Inventory and warehousing cycle
P = Payroll and personnel cycle
S = Sales and collection cycle
2. Choose three accounts from the table and explain why they are on the same cycle? (8 points)
ACT480: Auditing Homework Summer-II 2020 2 | P a g e
Question 2 – 72 Points
Please choose the appropriate “General Audit Objectives” for given the assertions and provide
an example for specific audit objectives for “Payroll Transactions” and “Accounts
Receivable”.
TERD is for “Transaction and Events and Related Disclosures” and ABRD for “ A ccount
B alances and Related D isclosures”
If there are multiple audit objective for an assertion, all must be mentioned with general
and specific audit objectives.
# Assertion
General Audit
Objectives
Specific Audit
Objective
1 TERD – Classification
2 ABRD – Rights & Obligations
3 ABRD – Completeness
4 TERD – Accuracy
5 TERD – Cutoff
6 ABRD – Accuracy, Valuation, and Allocation
7 ABRD – Classification
8 TERD – Completeness
9 ABRD – Existence
10 TERD – Occurence
ACT480: Auditing Homework Summer-II 2020 3 | P a g e

Check Price Discount

Study Notes & Homework Samples: Aquifer assignment »Tracing the historical justification for the evolution of the multiple use management approach as a response to the UN Convention on the Law of the Seas (UNCLOS)