Analytical procedures What is the purpose of using analytical review procedures in the final review stages of the audit?
Analytical review procedures are required in the concluding stages of the audit to serve as an analysis of last resort for potential misstatements in the financial statements. The reading of financial statements while considering the adequacy of evidence gathered in response to unusual or unexpected balances or relationships identified in planning the audit or during the course of the audit is an important reason for the final review stage. It is also possible that unusual or unexpected balances or relationships may not appear until the audit has been performed and proposed adjusting entries have been made.
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Gilligan Corporation was established on February 15, Year 1. Gilligan is authorized to issue 500,000 shares of $6.00 par value common stock. As of December 30, Year 1, Gilligan's stockholders' equity accounts report the following balances: Common stock, $6 par, 500,000 shares authorized 55,000 shares issued and outstanding$330,000 Paid-in capital in excess of par - Common 440,000 $770,000 Retained earnings 1,400,000 Total Stockholders' Equity $2,170,000 On December 31, Year 1, Gilligan decides to issue a 5% stock dividend. At the time of issue, the market price of the stock was $22 per share.How will the issuance of the stock dividend affect the financial statements?
A. Decrease the common stock account by $60,500, increase the retained earnings account by $16,500, and increase the paid-in capital in excess of par-Common B. Decrease the retained earnings account and increase the common stock account by $16,500. C. Decrease the retained earnings account by $60,500, increase the common stock account by $16,500, and increase the paid-in capital in excess of par-Common account by $44,000. D. Increase the dividends account and decrease the cash account by $108,500.
A support salesperson who usually advises customers on product characteristics and application, system design, and installation procedures is a(n)
A. trade salesperson. B. new-business salesperson. C. tech support worker. D. missionary salesperson. E. technical salesperson.
Discrete Discs Inc manufactures hard disk drives for personal computers. Discrete is an all equity firm. At the end of the current year, the CFO expects EBIT to be $10M and the same earnings are expected annually in perpetuity
The company is not growing so CAPEX and investments in net working capital are zero. The cost of equity for Discrete is 8%. Solid State Storage Inc is identical to Discrete except that it has $3M of long term debt outstanding. What is the value of Solid State's equity? The corporate tax rate is 30%. A) $84.5M B) $85.4M C) $87.5M D) $88.4M E) $122.9M
What is a money market hedge? How is it constructed?
What will be an ideal response?