14 Aug Please do not use the solution manual to the book as my professor is noticing this with previous assignments. Please use proper APA format for both in-text citation and reference page. Please see attached. 1.This week we begin to analyze special funds
Please do not use the solution manual to the book as my professor is noticing this with previous assignments. Please use proper APA format for both in-text citation and reference page. Please see attached.
1. This week we begin to analyze special funds for special purposes. The capital projects fund is one such fund. For what is the fund used?
2. Why do you think the idea of "funds developed in the government and nonprofit sectors? What does having separate funds add to the control process? Could for-profit accounting benefit from using funds?
3. The auditing profession has struggled with the concept of materiality for a long time. Do you think that auditors would be better off if auditing standards set a specific percentage of a specific base (e.g., 1% of total assets) to provide auditors guidance on setting materiality for a specific audit or is it better to leave the determination to auditor judgment? Discuss the pros and cons of this policy change for both auditors and users.
4. Briefly describe how each of the following factors might affect the strength of an auditee's control environment:
a) Perceived value of controls by management
b) Clearly defined lines of authority
c) Formal policies and procedures
d) Adequate personnel with proper incentives
e) Documentation
f) Adequacy of control procedures and control monitoring
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