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7 Discussion Questions- Auditing Class

Please answer the following 7??discussion questions inatleast??100 words??per question. Do not answer them as an essay. Please answer them under the question set.


1. List five asset accounts, three liability accounts, and five expense accounts included in the acquisition and payment cycle for a typical manufacturing company.


2. Explain the relationship between substantive tests of transactions for the acquisition and payment cycle and tests of details of balances for the verification of property, plant, and equipment. Which aspects of property, plant, and equipment are directly affected by the tests of controls and substantive tests of transactions and which are not?


3. Why are liability accounts included in the capital acquisition and repayment cycle audited differently from accounts payable?


4. What are the primary objectives in the audit of owners??? equity accounts?


5. What kinds of information can be confirmed with a transfer agent?


6. Which documents will be used to verify accrued property taxes and the related expense accounts?



7. It is less common to confirm accounts payable at an interim date than accounts receivable. Explain why.

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