ACC 490 Week 3 Individual Assignment Ch. 5, 6, & 7 Comprehensive Questions

need audit attention.

1.       The allowance for doubtful accounts is fairly presented in amount. Valuation or allocation



2.       All accounts payable owed as of the balance sheet date are included in the financial statements. Completeness



3.       All purchase returns recorded in the general ledger are valid. Existence or occurrence



4.       There is a risk that purchases made in the last week of the month might be recorded in the following period. Completeness



5.       The client may have factored accounts receivable. Rights and obligations



6.       The client has used special-purpose entities to finance a building. Neither the building nor the debt is included in the financial statements. Completeness



7.       A retail client values its inventory using the retail method of accounting. Valuation or allocation
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