Maurice Tutor

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    Argosy University/ Phoniex University/
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    Oct-2001 - Nov-2016

Category > Management Posted 30 Dec 2017 My Price 8.00

National Bank of Dallas.

James Burrow is the loan officer for the National Bank of Dallas. National has a loan of $325,000 outstanding to Regional Delivery Service, a company specializing in delivering products of all types on behalf of smaller companies. National’s collateral on the loan consists of 25 small delivery trucks with an average original cost of $24,000. Burrow is concerned about the collectibility of the outstanding loan and whether the trucks still exist. He therefore engages Samantha Altman, CPA, to count the trucks, using registration information held by Burrow. She was engaged because she spends most of her time auditing used automobile and truck dealerships and has extensive specialized knowledge about used trucks. Burrow requests that Altman issue a report stating the following:

1. Which of the 25 trucks is parked in Regional’s parking lot on the night of June 30, 2013.

2. Whether all of the trucks are owned by Regional Delivery Service.

3. The condition of each truck, using the guidelines of poor, good, and excellent.

4. The fair market value of each truck, using the current “blue book” for trucks, which states the approximate wholesale prices of all used truck models, and also using the poor, good, and excellent condition guidelines.

a. For each of the following parts of the definition of auditing, state which part of the preceding narrative fits the definition:

(1) Information

(2) Established criteria

(3) Accumulating and evaluating evidence

(4) Competent, independent person

(5) Reporting results

b. Identify the greatest difficulties Altman is likely to have doing this audit.

 

 

Answers

Maurice Tutor
(5)
Status NEW Posted 30 Dec 2017 10:12 PM My Price 8.00

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