Some inventory errors are said to be “self-correcting,” in that the error has the opposite financial statement effectin the period following the error, thereby “correcting,” the original account balance errors.Required:Despite this self-correcting feature, discuss why these errors should not be ignored and describe the steps requiredto account for the error correction.

Q: Define days sales outstanding. What can be learned from it? Does ithave any deficiencies when used…

A: Days sales outstanding: It is the number of days a company takes to collect cash from its credit…

Q: Which of the following error will be called as an Error of Commission?

A: The error of principle states that it is a error when entries are posted correct for amount but in…

Q: A high average collection period may indicate:     a. Management's willingness to quickly write-off…

A: The average collection period(ACP) refers to the time gap between the credit sale date and the date…

Q: Imagine that you were auditing accounts receivable balances to confirm sales and found significant…

A: The objective of this question is to find an alternative approach to confirm sales revenue when…

Q: The revenue cycle requires regular review. Identify at least two types of misstatements found in the…

A: The objective of this question is to identify two types of misstatements that can occur in the…

Q: What two approaches can managers take to speed up sluggish collections of receivables? List one…

A: Accounts receivable: Accounts receivable refers to the amounts to be received within a short period…

Q: Which of the following automated application controls would offer reasonable assurancethat inventory…

A: Auditing is a gathering of information and evaluation of evidence as to report on the degree of…

Q: How can we protect inventroy from being reordered automatically each time the system detects a low…

A: Low inventory level is the level at which there is a need to order new inventory so that the…

Q: An example of a preventive control in the expenditure cycle is: A. Requiring management approval for…

A: There are mainly 3 types of controls in internal control system : 1. Preventive Controls : That…

Q: Explain why the ledger can still contain errors even through the trial balance is in balance. Give…

A: Trial balance: Trial balance is a summary of all the asset, liability, and equity accounts and their…

Q: Choose the term that is associated with estimating the uncollectible accounts balance existing in…

A: There is always some default risk associated with extending credit to the customers. When the…

Q: then, discuss the statement content, stating examples of substantive analytical procedures which…

A:

Q: Management and auditor are concerned about inventory control function in automated system? Why? How…

A: Inventory control function in automated system :                   In automated system, inventory is…

Q: You will have the opportunity in this discussion to recommend adequate internal controls over sales…

A: To address the issues described in the scenarios, here are some internal controls that can be…

Q: Name the error which was made under the following circumstances: during the accounting period the…

A: There are various errors in the journal book or T-accounts which may or may not effect the total of…

Q: what are the objectives of eliminating the receiving function. What accounting/audit problems need…

A: Receiving Department:   The receiving department is in obligation of inspection and the receiving…

Q: The revenue cycle requires regular review. Identify at least two types of misstatements found in the…

A: The revenue cycle is the process of providing customers with goods and services and obtaining…

Q: Which of the following manipulations would understate accounts payable on the financial statements?…

A: Account payable  means the amount owed by business to outsider for the goods received and services…

Q: Provide two inherent risk factors in the revenue cycle and identify the accounts that are likely to…

A: RCM (revenue cycle management) is a procedure used by healthcare systems in the United States and…

Q: Which of the following is a test of control relating to purchases? a. None of the options b. Give…

A: Test of controls refers to the audit procedure followed by the auditors while conducting an audit of…

Q: internal control system

A: Internal control system is a set of policies and procedures implemented at the operational level of…

Q: Please answer with reason for all why the option is correct and why the other options are…

A: ⁤Representative Personal Accounts are used to record the financial information of people, whether…

Q: During the taking of physical inventory, the controller intentionally withheld several inventory…

A: If the auditor had observed the physical inventory count, they would have seen that the controller…

Q: Financial reports of the lowest level of quality refl ect:A . fi ctitious events.B . biased…

A: Financial reports are reports issued by an organization in order to highlight their financial…

Q: Which of the following factors could contribute to mistreatments in the revenue cycle? (select all…

A: Revenue Cycle: The revenue cycle is a method for defining and maintaining the processes used for the…

Q: Describe the process of accounting for errors that have been corrected.

A: The process of accounting for errors that have been corrected will be explained:

Q: The following are numerous management assertions associated to sales and account receivable. Account…

A: Assertions are claims that are made by the management of the business entity that the information…

Q: Posting errors are identified in the following table. In column (1), enter the amount of the…

A: Description of Posting Error Difference between Debit and Credit Columns Column with the Larger…

Q: Which of the following is an advantage of using a perpetual inventory system A. It is effective with…

A: In this question, we have to find out that from the following options which one is the advantage of…

Q: 1. A threat in the expenditure cycle that involves unauthorized individuals making purchases is…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Which of the following substantive procedures would most likely help an auditor determine whether…

A: Substantive procedures are performed to detect the material misstatement or fraud at the assertion…

Q: Name the error which was made under the following circumstances: The purchase of the machinery on…

A: When machinery is purchased on credit . Machinery account is debited. It's wrongly debited to…

Q: Which error cannot be revealed on the preparation of the trial balance? Wrong Totalling of account…

A: We have the following question: Which error cannot be revealed on the preparation of the trial…

Fraud

Fraud in accounting is the planned manipulation of financial documents to make a false appearance of corporate financial health. Moreover, it includes an employee, accountant, or the company itself misleading investors and shareholders.