Business, 16.07.2021 22:30 mariamalakozay603
A CPA is engaged in the audit of the financial statements of a large manufacturing company with branch offices in many widely separated cities. The CPA was not able to count the substantial undeposited cash receipts at the close of business on the last day of the fiscal year at all branch offices.     As an alternative to this auditing procedure used to verify the accurate cutoff of cash​ receipts, the CPA observed that deposits in transit as shown on the​ year-end bank reconciliation appeared as credits on the bank statement on the first business day of the new year. He was satisfied as to the cutoff of cash receipts by the use of the alternative procedure. a. State the condition (either change in accounting principle, failure to follow GAAP, none, reporting involving other auditors, or scope of the audit has been restricted)b. State the materiality level (either Material, immaterial, highly material, material or highly material, or not applicable)c. List any additional information needed (either amount of loss, auditor's preliminary judgement, client explanation in a memo, or the size of the misstatement)
Answers: 2
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A CPA is engaged in the audit of the financial statements of a large manufacturing company with bran...
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