Class Notes (810,488)
Canada (494,139)
Accounting (108)
ACCTG456 (12)

Chapter 9 In Class Question_solution.pdf

2 Pages
Unlock Document

University of Alberta
Trish Stringer

In Class #9.1 – Persuasiveness of evidence from analytical procedures Matthieu has the task of reviewing the evidence from analytical procedures conducted by the audit juniors on the audit of Soleil Services Ltd. The audit juniors have reported the results of these analytical procedures: 1. Comparison of depreciation expense with the closing balance of each depreciable asset class in property, plant, and equipment. 2. Recalculation of sales commission expenses using the standard sales commission rate and total sales. 3. Comparison of payroll expense with previous year payroll. Required 1: What information would you want to know or have access to as part of performing these analytical procedures (i.e. would you ask questions of the client and if so, what questions)? Questions Mathieu could ask include: (1) What acquisitions and disposals have occurred for each depreciable asset class? (These would affect the balance of assets at the end of the period although depreciation expense is for all assets held during the period.) Are the same rates and depreciation methods used for each asset in the asset class? Have the closing balances for the assets been verified? Are there any other changes in the business suggesting that asset balances should be different? Are there any significant changes from last year? (2) Are sales commissions ever give n at non-standard rates? If so, to which salespeople or for which products? Are all sales subject to sales commission? Has total sales been verified? Are there any significant changes from last year? (3) What chan
More Less

Related notes for ACCTG456

Log In


Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.