Biltrite case Module I through X Essay

I would discuss with the supervisor and coworkers about how much percentage of the inventory should be valuated so that auditors can conclude that the inventory has no material discrepancies. And also, I will negotiate with the client in order to have a little more time to finish required valuation of inventory. Since I believe that providing unqualified and faithfully represented financial reports is an essential mission of an accounting firm, and that the investors and governmental authority consider CPAs and auditors should be responsible for the quality of financial reports (the punishment is quite harsh for not doing a good job), I would intend to sacrifice more time and costs for more accurate financial information.

Also he may conduct bank reconciliations on pertinent accounts to make sure no discrepancies or misstatements are found. The auditor should also perform vertical and horizontal analysis for the income statements and balance sheets by the use of ratios.

E. Why does the auditor not use the same tolerable misstatement or percentage of account balance for all financial statement accounts?

Moreover, from the analyse tab and the function “Age”, an aging of the Accounts Receivable was performed.

of the orders placed and 20% of the delivery expense. Your activity-based approach suggests that

As focusing on each of the five management assertions for the inventory account, we discovered that there are some risky areas that indicate the need for further attention during the audit. First of all, for existence or occurrence, all items in the inventory account must physically exist and be available for sale. Thus, the auditors should physically count finished goods, copper rod, and plastic inventories, and determine actual increase of inventories at year end. Also, they should select items from the inventory ledger and locate them and reconcile the quantity. Second, for completeness, the auditors should make sure that all existing inventories have been recorded completely , go around the warehouse and ensure all the inventories are recorded in the inventory ledger. Third, for valuation or allocation, the auditors should make sure that Laramie Wire manufacturing sticks with one valuation method(For inventory items, valuation is based on the lower of cost or market value, with several alternative methods for calculating cost), find out if there is any scrap inventory that needs to be recorded and written off ,and ask about obsolescence items. Fourth, for rights and obligations, the auditor should ask them if there is any consigned inventory at their warehouse. If there is, those inventories should not be recorded in the company's inventory ledger. Finally, for presentation and disclosure, the auditors should review the company's financial

The Module 3 Case assignment is about a young nurse named Christy and her interactions between two different Romani patients. The case study highlights the differences in perception of a culture, and how that impacts the attitude of the provider staff and the health care the patients receive. Additionally, the case study shows how Jacqueline, the Clinical Nurse Manager, is trying to fix the overall cultural competence with the hospital staff to better accommodate the influx of Romani patients in what has always been a blue collar Irish Catholic neighborhood.

a ratio of 19.45 designates that receivables are turning over 19.45 times per period or every 18.77 days (if the period of Sales in question is one year or 365 days).

The amounts and all the data pertaining to revenue recorded and money receipt statements and events are recorded properly in their correct accounting period. Assessment and allocation disclosure to examine the results of confirmations and review the adequacy of allowance for uncollectible accounts are necessary to review financial records for appropriate awarding and disclosure of account receivables. A positive confirmation is required to show whether customers indicate their agreement with the quantity payable to the client. Negative confirmation requests show that the customers react simply once they disagree with the quantity due to the client, (Berry, 2011).

However, sales only grew 12.10% for the same period. (See Appendix A) The case indicates that National recognizes sales at the point of shipment. A more conservative approach would be to delay revenue recognition. In 2002, the receivables turnover ratio was 4.36 down from 5.01 in 2001. This indicates the company is slower on A/R collection from the previous year. (See Appendix B)

The purpose of this memo is to communicate to you the results and findings from our team’s assessment of the Accounts Receivable balances for Key West Company as of 20X1. Our team has already completed a thorough evaluation of the company’s internal control and we believe they are excellent. Therefore, the

While the auditor engaged a business valuation specialist to gather evidence about the fair value of the investment, the auditor would issue an unqualified opinion given he or she was able to conclude that the valuation specialist’s work provides sufficient appropriate evidence.

e. It’s not the auditor’s duty to check out whether the financial statements are without mistake, they only perform to see if they’re fairly presented.

The receivable turnover ratio decreased slightly from 2013 to 2014 due to the increase of 67 million in receivables compared to the increase of $245 million in Sales. This ratio for Macy’s implicates that they collect on what customers, vendors, and suppliers owe to them quite often throughout the year.

The overall objective of the audit of the revenue account is to evaluate the business process to ensure that revenue is adequately supported and authorized, transaction processing controls are adequate, segregation of duties throughout the revenue cycle is appropriate and internal controls are satisfactory. The auditor has to evaluate adherence to proper business practices; however, the primary emphasis is on reviewing internal controls for effectiveness and utilization, and examining standards and procedures for policy compliance.