INVENTORY OBSERVATION MEMO 1. Before commencement of verification‚ the management should issue appropriate instructions to stock taking personnel. Such instruction should cover all phases of physical verification and preferably be in writing Auditor should examine these instructions to assess their efficacy In the given Case; Manager‚ Andrew Jacobs issue said instructions to count team. But‚ while issuing instructions‚ no consideration was made to: • Stock held by company
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Apollo Shoes Case Assignment Apollo Shoes Inc.‚ Anderson‚ Olds‚ and Watershed has enjoyed working with your company this year‚ and look forward for more to come. Enclosed are the item that your company has requested of us‚ while there are some improvements to be made‚ your staff has done a fantastic job in assisting us with our audit. We hope that we have assisted your company and answered any questions about improvements to be made. Team C Sales Internal Control Questionnaire for Apollo
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+0000 From: "Darlene Wardlaw" Subject: Understanding the Revenue Cycle Attachment: I’ve attached a Sales internal control questionnaire from another engagement that I think you can use for Apollo. You may want to talk to Karina Ramirez to get answers to the questions. 1. Complete the ICQ for Apollo. For “yes” answers‚ add a comment stating which department and clerk performs the function. For “no” answers‚ describe the possible “errors” or “frauds” that could occur because of the control
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) Based on what Bradley found‚ there looks to be some serious problems in Sales and A/R. You need to write a memo identifying and explaining the significance of the qualitative features indicated by these deviations. Some things you may want to think about: * If the control performance were uniform for the year‚ the deviations would be evenly distributed by month. * Apollo Shoes faced financial problems in the fourth quarter of the year. * Sales transactions with missing bills
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49‚780‚259.98 | | | | 11400 | Other Recievables | | | 1‚000‚000.00 | | | | 11500 | Allowance for Doubt. Accts | | (1‚262‚819.88) | (1‚254‚009.75) | | | | 12000 | Inventory-Spotlight | | 18‚825‚205.24 | 67‚424‚527.50 | | | | 12300 | Reserve for Inventory Obsolescence | | (3‚012‚000.00) | (867‚000.00) | | | | 14100 | Prepaid Insurance | | 743‚314.38 | 3‚374‚213.78 | | | | 14200 | Prepaid Rent | | 200‚000.00
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controls are not emplaced our lack of them will cause a greater liability for collection. Will need to verify all the charges to the customer because there is many overcharge and undercharge amounts. The overcharge delay from invoice date and credit memo averages 24 days to correct the mistake. Apollo’s controls are un-reliable and we will need to follow up on all Revenue and Accounts Receivable. Also positive confirmations need to be sent to customers with accounts greater than 1‚000‚000 and
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000 Warranty Liability $2‚000‚000 To record the estimated warranty liability. To mark down the loss on the inventory that is now obsolete‚ one first has to figure out the Net Realizable Value‚ which is the lower of cost of market. Since they can sell the products for $8 million minus the selling cost of 20% of the sales revenue ($1.6 million) and the cost to rebuild the inventory of $2 million‚ the ceiling is then $4.4 million and the floor is $4 million ($4.4 million minus the 5% normal profit
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ICC-Memo Apollo Date 10/14/12 Initials While working on some of the sales transactions 51 deviations were discovered. The majority 31 out of 51 were missing credit approval notations. Also 10 of these are still unpaid. This could indicate weak controls in the credit department which could leave the company with
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Relevant Information-Apollo Shoe GA-3 Information Relevant to 2011 Audit Audit Action Recommended Pressure to meet sales targets GA 3-1 Increase procedures related to existence of sales and valuation of receivables‚ as well as cutoff Purchase of equipment GA 3-1 Verify through invoices and receiving reports if equipment purchased during the year Verify terms of refinancing for accuracy as well as interest payments. Line of credit refinanced GA 3-1 Did they pay note on Jan. 1‚ 2012 or refinance
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During my observation in Mrs. Prieto’s class I had the chance to administer the basic reading inventory to a student. Before I administered the assessment‚ I took some steps in order to prepare myself for it. One of the first and crucial steps I did was researching. I first had to research how to grade and analyze the assessment. I also saw some videos on the Internet of teachers administering the assessment to their students with step by step instructions. I wanted to make sure I was well prepared
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