phase of the audit‚ you met with Pinnacle’s management team and performed other planning activities. You encounter the following situations that you believe may be relevant to the audit: 1. Your firm has an employee who reads and saves articles about issues that may affect key clients. You read an article in the file titled‚ “EPA Regulations Encouraging Solar-Powered Engines Postponed?” After reading the article‚ you realize that the regulations management is relying upon to increase sales of this
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lapping. b) One of the sales clerks has not been preparing charge slips for credit sales to family and friends. c) The EDP control clerk has been removing all sales invoices applicable to his account from the data file. d) The credit manager has misappropriated remittances from customers whose accounts have been written-off. 2. Customers having substantial year-end past due balances fail to reply after second request forms have been mailed directly to them. Which of the following is the most
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Effective Business Intelligence for SME As smaller firms face competition and grow‚ it’s imperative they make good decisions based on even better information When asked what business intelligence (BI) tools are used to measure their organizational performance‚ the common response by entrepreneurs might include Excel spreadsheets‚ report writers and canned reports. BI can be defined as the ability to extract actionable insight from data available to the organization‚ both internal and external‚
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Fine Foods hired a consulting firm to “assist in the selection and installation of a comprehensive Retail Enterprise Management System (REMS)”‚ according to the Kudler Fine Foods intranet. REMS is a modular system which contains a General Ledger‚ Accounts Payable‚ Point of Sale‚ Bank Reconciliation‚ and Asset Management and Accounting modules. To save money‚ the Asset Management and Accounting module was not purchased since the stores are all on long term leases and the remaining assets can be “controlled
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the ratio can be calculated for a number of years. Return on equity (ROE) is widely used to measure the overall profitability of the company from preference and common stockholders’ view point. The ratio also indicates the efficiency of the management in using the resources of the business. Higher ratio means high return on shareholders’ investment. Investors always search for the highest return on their investment and a company that has higher ROE ratio than others in the industry attracts
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for 1991: The balance sheet was created by disregarding the fact that butler lumber company needs additional loan. Cash‚ accounts receivables as well as net property plant were computed based on the average % of sales of the 3 previous years. The same idea was used to determine the projected accounts payables and accrued expenses. Net worth of Butler Lumber Company was net worth from the previous year and net income from the projected income statement
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Determine likely significant audit risks and key accounts at risk Audit risk: risk that auditor has not uncovered a material misstatement in the financial statements Potential accounts at risk: Provision for compensation claims/litigation Inventory Accounts receivable Accounts payable Brand name PRACTICE EXAM 2‚ QUESTION 3‚ PART 1 (PP.240-241) Identify 5 business factors and explain their impact on risk of material misstatement Also identify account balance most affected. Business factor (i)
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fair view accordance with approved accounting standards. To access the accounting system and internal controls starting point is Revenue Cycle. Sales cycle is the process businesses use to describe the financial progression of company’s accounts receivables from the beginning which the company acquire product to the end of cycle when the company received cash payments from customers in cash or within credit terms if there is credit sales of products. The sales accounting system of such an entity
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main topics. Deficiencies in Audits of Internal Controls The most significant deficiencies that I identified in auditing internal controls are the following: * The firm’s failure to sufficiently test the design and operating effectiveness of management review controls‚ such as their forecasts for revenues * The firm’s failure to test the system-generated data and reports that support vital controls * The firm’s failure to identify and thoroughly test controls that are intended to address
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still cannot ignore their employees. Woolworths provides quality goods and services to customer. At the same time Woolworths need to preserve the power of the staff. Therefore I think the Australian Labor law should be application. Q3 Account receivable Through view the annual
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