Auditing Principle & Procedur /Acct401

College of Administration and Finance Sciences

Assignment (2)
Deadline: 27/11/2025 @ 23:59
Course Name: Auditing Principle &
Procedur

Student’s Name:

Course Code: ACCT 401

Student’s ID Number:

Semester: 1st

CRN:
Academic Year: 1447 H (2025-2026)

For Instructor’s Use only
Instructor’s Name:
Students’ Grade:

/15

Level of Marks: High/Middle/Low

Instructions – PLEASE READ THEM CAREFULLY
• The Assignment must be submitted on Blackboard (WORD format only) via allocated
folder.
• Assignments submitted through email will not be accepted.
• Students are advised to make their work clear and well presented, marks may be
reduced for poor presentation. This includes filling your information on the cover page.
• Students must mention question number clearly in their answer.
• Late submission will NOT be accepted.
• Avoid plagiarism, the work should be in your own words, copying from students or
other resources without proper referencing will result in ZERO marks. No exceptions.
• All answers must be typed using Times New Roman (size 12, double-spaced) font. No
pictures containing text will be accepted and will be considered plagiarism.
• Submissions without this cover page will NOT be accepted.

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College of Administration and Finance Sciences

Assignment Question(s):
1. Ahad Abdullah is a staff accountant and has been assigned to the audit of
Worldwide Enterprises, Inc. Subsequent to the completion of fieldwork, Ahad was
assigned to draft the audit report. The content of one of the paragraphs he has
drafted reads as follows:
As explained in Note 2 to the financial statements, Worldwide Enterprises has
charged goodwill and certain other intangible assets acquired in two separate
acquisitions directly to shareholders’ equity. Under generally accepted accounting
principles, these intangibles should have been recorded as assets and amortized to
income over future periods. Had these intangibles been capitalized, total assets
would have increased by $400,000 as of December 31, 2011 and net income and
earnings per share would be increased by $380,000 and $2.25, respectively
(assuming a 20-year amortization period)
.
a. Based on the contents of the paragraph above, which condition requiring a
departure from a standard unqualified/unmodified opinion exists in the
engagement?
b. Assuming that the engagement partner agrees with the paragraph Ahad has
prepared above, where in the auditor’s report should the paragraph be placed?
c. How would the materiality of the condition above affect the final choice of
opinion? (4 Marks)

Answer
2 You are auditing cash for Moonbeam, Inc. In meeting with the CFO

during the planning stages of the audit, she indicated that there was a
high risk of misstatement due to fraud in the cash account, given the lack
of proper segregation of duties. As the auditor, what tests could you
perform to detect fraudulent activities in the cash account?
(4 Marks)
Answer

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College of Administration and Finance Sciences

3. Identify the types of transactions that occur in the property

management process.

(3 Marks)

ANSWER:
4 State the six functions that make up the inventory management

process. For each function, identify the related documents and/or
records that would be used by a manufacturing company.
(4Marks)
ANSWER:

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