Chat with us, powered by LiveChat answer the questions about auditing | Wridemy

answer the questions about auditing

Question Description
In 2020, Bill decides to refinance his mortgage and the balance on his small business loan in to one at a lower rate. The bank is willing to work with him as long as he can provide them with copies of audited financial statement. He isn’t sure what that means so he come to you and you explain the different types of audits that are performed and the different types of opinions that can be issued and agree to perform the audit.

In your audit of Bill’s Bagels Inc for 2019, you found a number of issues that you believe to represent possible adjustments to the company’s books. Bill’s attitude is that “once the books are closed, they’re closed”, and he doesn’t want to make any adjustments. Below are the issues that concern you.

Credit memos totaling $3,000 that were processed and recorded after year-end relate to sales and accounts receivable for 2019.
Inventory cutoff tests indicate that $23,000 of inventory received after December 31, 2019, was recorded as purchases and accounts payable in 2020. These items were included in the inventory count at year-end and therefore were included in ending inventory.
Inventory cutoff tests also indicate several sales in 2019 for goods that were shipped in early 2020. The goods were not included in inventory but were set -aside in a separate shipping area. The sales total of these shipments was $15,000 and the cost of sales for the shipments $10,000
The company wrote several checks totaling $48,000 at the end of 2019 for accounts payable that were held and not mailed until January 15, 2020.
The company has not established a reserve for expiring inventories. Your tests indicate that a reserve $20,000 is appropriate.
Your review of the allowance for uncollectible accounts indicates that it may be understated by between $2,000 and $3,000.

Determine the adjustments that you believe must be made for Bill’s Bagels financial statements to be fairly presented. Include the amounts and accounts affected by each adjustment. (Planning materiality for the engagement was determined to be 2% of expected income before taxes.) A trial balance is provided for your review.

A.Prepare the necessary adjustments and show how they would affect the financial statements-individually and in the aggregate (total)

B.Describe your responsibilities related to unadjusted misstatements that management has determined are immaterial individually and in the aggregate.

C.What type of opinion would be issued if the adjustments were made?

D.What type of opinion would be issued if Bill refuses to make the adjustments?

base the worksheet that i give u answer B.C.D. (A is done)

Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.

Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.

Do you need an answer to this or any other questions?

About Wridemy

We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.

How It Works

To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.

Are there Discounts?

All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.

Hire a tutor today CLICK HERE to make your first order

Related Tags

Academic APA Writing College Course Discussion Management English Finance General Graduate History Information Justify Literature MLA