delay in finalising the auditor’s report. It is involving the possibility of fraud in a financial audit engagement. On February 5 of 2006‚ Kencana & Associates had just been informed by his subordinates that there had been inconsistencies in the accounts of Flat Cargo Berhad (FCB)‚ and they cannot deal with another client scandal. The team has to report to the audit committee of FCB in two weeks. Thus in order to do so‚ Mr Chuah has to work through the company’s information to assess the possibility
Premium Generally Accepted Accounting Principles Balance sheet Accounts receivable
personnel administration‚ purchasing‚ maintaining accounts payable and managing office operations. The Finance Officer must work within the Financial Management Act‚ Municipal policies and procedures and in compliance with all Territorial Acts and Legislation. Failure to provide adequate services may result in lost or misused revenues‚ inaccurate financial statements and financial hardships for employees‚ contractors and suppliers if the payroll and/or accounts payables are not processed in an accurate and
Premium Accounting software Management Accounts payable
Region. The Eastern Region was a rural market while the Western region was partially a resort and partially an urban area. Each region was made the responsibility of an area supervisor who had worked for many years in the company’s lumber yards. A management committee consisting of the president‚ controller‚
Premium Balance sheet Accounts receivable Financial ratios
1. IntroductionPensonic Company Pensonic is one of the most successful trading companies in Penang‚ Malaysia that sells a wide variety of electrical appliances. In addition to its own brand “Pensonic”‚ the company also owns the German brand “Lebensstil Kollektion” and owns the sole-distribution rights for the Dutch brand “Princess” in Malaysia. Pensonic also established a mass production hub and international distribution network of electrical home mechanism and an international distribution network
Premium Balance sheet Accounts receivable Inventory
Biltrite Practice Case Module III: Control Testing – Sales Processing 1. The sampling plan in the design of controls does not provide tests about revenues and accounts receivables. The weakness that I could see is the fact that goods that were delivered to customers were not billed which result in bill of lading not being pre-numbered. Because of this‚ bills of lading do not count as an effective sampling unit. For a successful audit‚ auditors need to evaluate orders randomly and check to see
Premium Balance sheet Accounts receivable Sampling
incurred operating losses‚ which meant that generating cash from operations was at best limited or insufficient. The second major factor is the inefficient use or mismanagement of some of the current assets accounts‚ namely Accounts Receivable and Inventories. When it comes to Accounts Receivable‚ it can be seen that in 1985‚ which is the most recent full year of operation‚ the company’s Days Sales Outstanding is 70.9 days versus the industry’s average of 55.1 days. This indicates that customers are
Premium Inventory Balance sheet Accounts receivable
Problem Statement Recently the continued growth in sales has raised accounts receivable and inventories considerably. This decrease in inventory turnover has caused accounts payable to rise due to heavy reliance on credit from suppliers. There are many ways in which you can lower the size of the line of credit needed. Good management can lower the credit line needed by lowering the inventories and accounts receivables‚ which grew in 2005 and 2006 because Jones is trying to increase production
Premium Balance sheet Financial ratios Accounts receivable
Liquidity Ratio Analysis What It Measures Liquidity ratios are a set of ratios or figures that measure a company’s ability to pay off its short-term debt obligations. This is done by measuring a company’s liquid assets (including those that might easily be converted into cash) against its short-term liabilities. There are a number of different liquidity ratios‚ which each measure slightly different types of assets when calculating the ratio. More conservative measures will exclude assets that
Premium Balance sheet Asset Investment
Nelson Jones’s dedication to his work‚ the business has been able to show profits even in an extremely competitive market environment. Jones Electrical Distribution has been able to compete on the basis of competitive pricing‚ effective inventory management‚ and aggressive sales force. But even though the company seems to be operating successfully‚ its ineffective collections policy has drained the company’s cash leaving it in dire need of additional financing. In order to afford to continue taking
Premium Balance sheet Accounts receivable Debt
inefficiency in the procedures for processing and controlling delivery orders and sales invoices. Weaknesses in Internal Controls The first weakness in internal controls is related to the computerized function which included shipping‚ billing and accounts receivable are permanently assigned to a specific computer operator. Such arrangement showed the poor data center and network operations controls. As there is only one specific computer operator is assigned for a lot of major functions‚ he or she may potentially
Premium Accounts receivable Accounts payable Invoice