203349718-Auditing-problem-reviewer DOCX

Title 203349718-Auditing-problem-reviewer
Author Jossette Jarabeho
Pages 10
File Size 63.3 KB
File Type DOCX
Total Downloads 181
Total Views 978
Summary

Auditing Problems Final Term Exam 3.14.2013 Name: __________________ Score: ________ Expected Grade: _________ Additional Points/Incentive: DIRECTION: Encircle your final answer. Erasures are not allowed. PROBLEM NO. 1 You obtained the following information from the balance sheet of Caloocan Company...

Description

Auditing Problems Final Term Exam 3.14.2013 Name: __________________ Score: ________ Expected Grade: _________ Additional Points/Incentive: DIRECTION: Encircle your final answer. Erasures are not allowed. PROBLEM NO. 1 You obtained the following information from the balance sheet of Caloocan Company in connection with your audit of the Company's financial statements for the year 2012: Dec 31, 2012 Dec.31.2011 P706,600 ? All operating expenses are paid by Caloocan with cash and all purchases of inventory are made on account. Caloocan sells only one product. All sales are cash sales which are made for P100 per unit. Caloocan purchases 1,500 units of inventory per month and values its inventory using periodic FIFO. The unit cost of inventory during January 2012 was P65.20 and an increased of P0.20 per month during the year. During 2012, payments to suppliers totaled P943,400 and operating expenses totaled P440,000. The ending inventory for 2011 was valued at P65.00 per unit. QUESTIONS: Based on the above and the result of your audit, determine the following: 1. Number of units sold during 2012 a. 18,900 c. 8,268 b. 18,400 d. 8,768 2. Accounts payable balance at December 31, 2012 a. P400,000 c. P150,000 b. P380,200 d. P383,500 3. Inventory amount at December 31, 2012 a. P 385,900 c. P 352,500 b. P 1,055,183 d. P 1,022,483 4. Which of the following audit procedures would provide the least reliable evidence that the client has legal title to inventories? a. Confirmation of inventories at locations outside the client's facilities. b. Observation of physical inventory counts. c. Examination of paid vendors' invoices. d. Analytical review of inventory balances compared to purchasing and sales activities. 5. An auditor generally tests physical security controls over inventory by a. Test counts and cutoff procedures. b. Examination and reconciliation. c. Inquiry and observation. d. Inspection and recomputation. PROBLEM NO. 2 You are engaged to examine the financial statements of the Olive Manufacturing Corp. for the year ended December 31, 2012. The following schedules for property, plant, and equipment and related accumulated depreciation accounts have been prepared by your client. The opening balances agree-with your prior year's audit working papers. Olive Manufacturing Co. Analysis of Property, Plant, and Equipment and Related Accumulated Depreciation Accounts Year Ended December 31, 2012 Prepared by: Dave Ritz J. Peria, CPA Page 1 Cash Notes receivable Inventory Accounts payable P200,000 50,000 399,750 150,000...

Similar Free PDFs
Popular Institutions