Golden Limited Case Study
Further adjustments and information:
Accumulated Depreciation - Building i-v-e ry Truck***
Collections: Accounts Receivable $21,000; Interest on Bonds $6,000; Cash Sales
Allcw--ance for Doubtful Debts
i. Bad debt expense is estimated at 1% of credit sales
ccumulated Depreciation - Delivew Truck
ii. Record straight-line depreciation on the building and trucks
iii. Accrued interest on investment in bonds is $1,500
r :es Payable
iv. Income tax expense for 2007 is $f17,065. Tax is not due until 2008
Income Taxes Payable
linary Shares (Par Value: $1)
a) Prepare journals for each of the transactions above of Golden Limited
b) Prepare a trial balance after posting the journal entries
c) Prepare income statement and balance sheet
OF ÿrating …show more content…
B. Communication with predecessor auditor
C. Auditor's engagement letter/Audit Notification.
There are three main stages of a typical audit engagement:
D. Report on Reportable Conditions/Management Letter
E. Auditor's communication with the audit committee.
1. Review documentation on the Mandate and Delegation of Authority for the
a. Name the three stages in chronological order
B. Describe three critical procedures that must be performed during the first stage
• and the sources of information for those procedures.
2. For investments in nonpublic entities, compare carrying value to information in the most recently available audited financial statements.
3. Management did not correct certain misstatements because it considered them
What are the key responsibilities of the assisting auditor during the second
immaterial to the financial statements.
4. Fees for our services are based on our regular per diem rates, plus travel and other out-of-pocket expenses.
5. The scope of the audit was financial and operational in nature and covered the period from 1999 through 2004.
6. We would be grateful if your. offices could communicate the above