Which of the following circumstances most likely would require an auditor to apply an omitted procedure after the audit report issuance date?
Which of the following circumstances most likely would require an auditor to apply an omitted procedure after the audit report issuance date? The auditor’s report is unsupported as a result of the omitted procedure.
What does the auditor need to document when there is substantial doubt that a client will continue as a going concern multiple choice the conditions or events that suggest there is a going concern uncertainty management’s plan or lack thereof to mitigate the conditions and to continue as a going concern the auditor’s conclusion?
If the auditor determines that substantial doubt exists about the client’s ability to continue as a going concern, standards require that the auditor obtain information about client’s legal counsel and their prediction of whether the company will go bankrupt.
Under which of the following circumstances might an auditor disclaim an opinion?
Under which of the following set of circumstances might the auditors disclaim an opinion? There has been a material change between periods in the method of application of accounting principles. There are significant scope limitations on the audit. There are significant scope limitations on the audit.
Which of the following is not a purpose of the review of audit documentation by a supervisor during fieldwork?
Which of the following is not a purpose of the review of audit documentation by a supervisor during fieldwork? To ensure that the overall scope of the audit is appropriate.
Which of the following is the best example of a corroborating evidence?
The best example of the corroborating evidence is Purchase Orders, which are helpful in obtaining the information. c . The sales invoice can be used as a supporting document from which relationship between accounts receivable and credit sales are established which in turn throws highest level of evidence.
Which of the following best describes the primary purpose of audit procedures?
The main purpose of audit programme is that every material area has been audited appropriately and sufficient appropriate audit evidence has been obtained in respect of every important areas of audit.
What is the primary purpose of audit?
The purpose of an audit is for an independent third party to examine the financial statements of an entity.
Which of the following best describes the primary purpose of the balance sheet?
which of the following describes the primary objective of the balance sheet? to report the financial position of the reporting entity at a particular point in time.
Which of the following best describes the balance sheet?
The correct answer is option b) The balance sheet reports the assets, liabilities, and stockholders’ equity at a specific date.
Which of the following best describes a company balance sheet?
It includes a listing of assets at their market values. It includes a listing of assets, liabilities, and stockholders’ equity at their market values. It provides information pertaining to a company’s assets and the claims against sources of financing for those assets.
Which of the following are the components of stockholders equity on the balance sheet?
Four components that are included in the shareholders’ equity calculation are outstanding shares, additional paid-in capital, retained earnings, and treasury stock.
What are the two components of equity?
The shareholders’ equity section of a corporate balance sheet consists of two major components: (1) contributed capital, which primarily reflects contributions of capital from shareholders and includes preferred stock, common stock, and additional paid-in capital3 less treasury stock, and (2) earned capital, which …
What are the three components of retained earnings?
The three components of retained earnings include the beginning period retained earnings, net profit/net loss made during the accounting period, and cash and stock dividends paid during the accounting period.
Which of the following best describes equity?
Answer Expert Verified Best describes owner’s equity: The owner’s interest or worth in the business. Owner’s equity is equal to the business assets less the business liabilities.
Which of the following best describes depreciation?
Depreciation: Depreciation is the writing off the value of assets due wear and tear and obsolesce and other reasons. The amount is written off over the useful life of the asset. Hence option b is the correct.
Which of the following are the three basic elements of the balance sheet quizlet?
reports the amount of revenues earned and expenses incurred during the period. Which of the following are the three basic elements of the balance sheet? assets, liabilities, and stockholders’ equity.
What best describes owner’s equity?
Owner’s Equity is defined as the proportion of the total value of a company’s assets that can be claimed by its owners (sole proprietorship or partnership. It is calculated by deducting all liabilities from the total value of an asset (Equity = Assets – Liabilities).
What is the purpose of the statement of owner’s equity?
What is the Statement of Owner’s Equity? The statement of owner’s equity portrays changes in the capital balance of a business over a reporting period. The concept is usually applied to a sole proprietorship, where income earned during the period is added to the beginning capital balance and owner draws are subtracted.
Why owner’s equity is credit?
Since the normal balance for owner’s equity is a credit balance, revenues must be recorded as a credit. At the end of the accounting year, the credit balances in the revenue accounts will be closed and transferred to the owner’s capital account, thereby increasing owner’s equity.
What creates owners equity?
Owner’s equity is essentially the owner’s rights to the assets of the business. It’s what’s left over for the owner after you’ve subtracted all the liabilities from the assets. If you look at your company’s balance sheet, it follows a basic accounting equation: Assets – Liabilities = Owner’s Equity.
What are equity examples?
Definition and examples. Equity is the ownership of any asset after any liabilities associated with the asset are cleared. For example, if you own a car worth $25,000, but you owe $10,000 on that vehicle, the car represents $15,000 equity.
Why is owner’s equity not an asset?
Owner’s equity represents the owner’s investment in the business minus the owner’s draws or withdrawals from the business plus the net income (or minus the net loss) since the business began. Owner’s equity is viewed as a residual claim on the business assets because liabilities have a higher claim.
How is equity calculated?
You can figure out how much equity you have in your home by subtracting the amount you owe on all loans secured by your house from its appraised value. For example, homeowner Caroline owes $140,000 on a mortgage for her home, which was recently appraised at $400,000. Her home equity is $260,000.
How much equity can I cash out?
How much equity can I take out of my home? Although the amount of equity you can take out of your home varies from lender to lender, most allow you to borrow 80 percent to 85 percent of your home’s appraised value.
What does it mean to have 20% equity?
When you made the purchase, you put down 20 percent as your down payment. In order to pay for the rest, you got a loan from a mortgage lender. This means that from the start of your purchase, you have 20 percent equity in the home’s value. Equity can also increase if your home’s value increases.
How much equity do I need to refinance?
20 percent equity
Do you lose equity when you refinance?
A refinance can simply mean trading for a new loan, or cashing out some of the equity you already have in the property. If you do a “cash-out” refinance, however, your equity will drop.
How much does my house need to appraise for to refinance?
20 percent
Should I refinance if my home value has increased?
But if you’ve owned your home for a while, the value has increased, and your credit history is pretty good, then you stand a fair shot at a refinance. That’s because your house is worth more than you owe, and refinancing what you owe for a better deal is less of a risk for the bank.