ACCT 444 Week 7 Homework Problems

ACCT 444 Week 7 Homework Problems

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3-27 (Objectives 3-1, 3-2, 3-4, 3-6, 3-7)Patel, CPA, has completed the audit of the financial statements of Bellamy Corporation as of and for the year ended December 31, 2011. Patel also audited and reported on the Bellamy financial statements for the prior year. Patel drafted the following report for 2011.

3-32 (Objectives 3-1, 3-2, 3-4) The following tentative auditor’s report was drafted by a staff accountant and submitted to a partner in the accounting firm of Better & Best, CPAs:

24-26 (Objective 24-1, 24-2) Elizabeth Johnson, CPA, has completed the audit of notes payable and other liabilities for Valley River Electrical Services and now plans to audit contingent liabilities and commitments.

24-28 (Objective 24-3) In analyzing legal expense for the Boastman Bottle Company, Mary Little, CPA, observes that the company has paid legal fees to three different law firms during the current year. In accordance with her CPA firm’s normal operating practice, Little requests standard attorney letters as of the balance sheet date from each of the three law firms.

25-22 (Objective 25-1) You are doing a review services and related tax work engagement for Murphy Construction Company. You have made extensive inquiries of management about their financial statements and have concluded that management has an excellent understanding of its business and is honest, but lacking in knowledge of technical accounting issues. In doing the review you determine the following:

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