Maurice Tutor

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Category > Management Posted 26 Oct 2017 My Price 7.00

eneral Department Stores, Inc.

Cook, CPA, has been engaged to audit the financial statements of General Department Stores, Inc., a continuing audit entity, which is a chain of medium-sized retail stores. General’s fiscal year will end on June 30, 2015, and General’s management has asked Cook to issue the auditor’s report by August 1, 2015. Cook will not have sufficient time to perform all of the necessary fieldwork in July 2015 but will have time to perform most of the fieldwork as of an interim date, April 30, 2015.

 

After the accounts are tested at the interim date, Cook will also perform substantive procedures covering the transactions of the final two months of the year. This will be necessary to extend Cook’s conclusions to the balance sheet date.

 

Required:

 

a. Describe the factors Cook should consider before applying substantive procedures to General’s balance sheet accounts at April 30, 2015.

b. For accounts tested at April 30, 2015, describe how Cook should design the substantive procedures covering the balances as of June 30, 2015, and the transactions of the final two months of the year

Answers

Maurice Tutor
(5)
Status NEW Posted 26 Oct 2017 10:10 AM My Price 7.00

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