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An element X forms both a dichloride (XCl2) and a

Chemistry | 8th Edition | ISBN: 9780547125329 | Authors: Steven S. Zumdahl ISBN: 9780547125329 153

Solution for problem 161 Chapter 3

Chemistry | 8th Edition

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Chemistry | 8th Edition | ISBN: 9780547125329 | Authors: Steven S. Zumdahl

Chemistry | 8th Edition

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Problem 161

An element X forms both a dichloride (XCl2) and a tetrachloride (XCl4). Treatment of 10.00 g XCl2 with excess chlorine forms 12.55 g XCl4. Calculate the atomic mass of X, and identify X.

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CHAPTER 16—Auditing the Financing/Investing Process: Cash & Investments • Cash—currency on hand & cash on deposit in bank accounts, including certificates of deposits, time deposits, & savings accounts • Cash Equivalents—frequently combined w/ cash for presentation in the financial statements o Short-term, highly liquid investments that are readily convertible to cash or so near their maturity that there is little risk of change in their value o Examples: treasury bills & money market funds Types of Bank Accounts • General Cash Account • Imprest Cash Accounts • Branch Accounts • In order to optimize its cash flow, an entity implements procedures for accelerating the collection of cash receipts & delaying the payment of cash disbursements, to the extent delay is appropriate The Effects of Controls • The reliability of the client’s controls over cash affects the nature & extent of the auditor’s tests of details o Controls for cash receipts o Controls for cash disbursements o Completion of monthly bank reconciliation Substantive Analytical Procedures—Cash • Because of the residual nature of the cash account, the auditor’s use of substantive analytical procedures for auditing cash is limited to: o Comparisons w/ prior years’ cash balances o Comparisons w/ budgeted amounts • This limited applicability of substantive analytical procedures is normally offset by 1) extensive tests of controls and/or substantive tests of transactions for cash receipts & disbursements or 2) extensive tests of the entity’s bank reconciliations Auditing the General Cash Account • To audit a cash account, the auditor should obtain these items: o Copy of bank reconciliation o Standard bank reconciliation § Cross referencing—check amount from one work paper to another o Cutoff bank statement § Normally covers the 7- to 10-day period after the date on which the bank account is reconciled § For reconciliation purposes, any item should have cleared the client’s bank account during the 7- to 10-day period Tests of the Bank Reconciliation 1. Verify the mathematical accuracy & agree the balance per the books to the GLà footing 2. Agree the bank balance on the reconciliation w/ the balance shown on the standard bank confirmation 3. Trace the deposits in transit on the bank reconciliation to the cutoff bank statement 4. Compare the outstanding checks on the bank reconciliation w/ the canceled checks contained in the cutoff bank statement for proper payee, amount, & endorsement 5. Agree any charges included on the bank statement to the bank reconciliation 6. Agree the adjusted book balance to the cash account lead schedule Fraud-Related Audit Procedures • Extended bank reconciliation procedures o In some instances, the year-end bank reconciliation can be used to cover cash defalcations o This is usually accomplished by manipulating the reconciling items in the bank reconciliation o Example: A client employee was able to steal $5,000 from the client. The client’s cash balance at the bank would then be $5,000 less than reported on the client’s books. The employee could “hide” the $5,000 shortage in the bank reconciliation by including a fictitious deposit in transit o May be worries for fraud risk & how they’d cover it up § Put fake deposits in transit • Proof of cash o Reconciliation from prior month § Rolls forward reconciliation using cash receipts & cash receipts journal § Stronger to see all activities • Tests for kiting o Example: Stole $10,000—cover up by transferring money around & playing w/ timing § Write check out of one bank account & into another bank account in the company during the same period § Interbank transfers & capitalizing on delays Auditing a Payroll or Branch Imprest Account • The audit of any imprest cash account (payroll or a branch account) follows the same basic audit steps discussed under the audit of the general cash account Auditing Petty Cash • Usually not material • Potential for defalcation • Seldom perform substantive tests • Document controls Auditing Investments • Common Stock • Preferred Stock • Debt Securities • Hybrid Securities • Inherent Risk o How complex the investments are that are hard to value (higher IR) § Ex: mortgage-backed securities o Derivatives are harder to deal with o If it is hard to determine fair value, IR is higher • Control Risk o Occurrence & Authorization § Make sure every transaction actually occurred if they say they bought the certain shares of stock § Make sure it’s authorized—company may not allow you to get involved in high risk investments o Completeness § Make sure nothing is missing from the books o Accuracy & Classification § Classification—depending on investment, you may 1) hold it to maturity, 2) trade security, or 3) available for sale § Accuracy—did you record it at the right price • Tests of Details o Existence § Auditing standards state that the auditor should perform one of the following procedures when gathering evidence for existence: • Physical examination • Confirmation w/ the issuer • Confirmation w/ the custodian • Confirmation of unsettled transactions w/ the broker-dealer • Confirmation w/ the counterparty • Reading executed partnership or similar agreements o Valuation & Allocation § The auditor must determine if there has been any “other than temporary” or permanent decline in the value of an investment security § Auditing & accounting standards provide guidance for determining whether a decline in value below amortized cost is other than temporary o Disclosure Assertions § Marketable securities need to be properly classified as held-to- maturity, trading, & available-for-sale § Held-to-maturity securities & individual available-for-sale securities should be classified as current or non-current assets based on whether management expects to convert them to cash within 12 months § All trading securities should be classified as current assets

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Chapter 3, Problem 161 is Solved
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Textbook: Chemistry
Edition: 8
Author: Steven S. Zumdahl
ISBN: 9780547125329

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An element X forms both a dichloride (XCl2) and a