PINNACLE MANUFACTURING―PART V ACCT444 Group Project Part 5 S 15-35 a. (Debbie‚ Anhchi‚ and Rachel) Client: Pinnacle Manufacturing Audit Area: Tests of Controls and Substantive Test of Transactions―Acquisitions. Define the Objective(s): What is the objective? Define the population precisely (including stratification‚ if any): What is the population? Define the sampling unit‚ organization of population items‚ and random selection procedures: What is the sampling organization?
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statements External users rely heavily on the financial statement of Pinnacle Manufacturing. Although‚ Pinnacle manufacturing is a privately held company it incurs a large amount of debt. As a result potential users rely heavily on financial statements. Pinnacle is selling the machine tech division to focus on engine manufacturing‚ the company’s core operations. This causes buyers to also rely heavily on financial statements. In No. 6 the board chooses to finance the construction project mentioned
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Original Work please INTEGRATED CASE APPLICATION –PINNACLE MANUFACTURING: PART II 9-37 (Objectives 9-7‚ 9-8) In Part I of the case‚ you performed preliminary analytical procedures for Pinnacle (pp. 245–247). The purpose of Part II is to identify factors influencing risks and the relationship of risks to audit evidence. During the planning phase of the audit‚ you met with Pinnacle’s management team and performed other planning activities. You encounter the following situations that you believe
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Part A - Acceptable Audit Risk and Engagement Risk Issues: External users’ reliance on financial statements: Pinnacle Manufacturing Company is a privately owned‚ however it relays on loans and has a substantial amount of debt. For that reason‚ the financial statements are extremely useful to investors. Pinnacle management is planning to sell their Machine – Tech division if profits don’t increase in the coming years. If Pinnacle sells‚ the financial statements will be extremely important
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with supporting references I identify manufacturing costs when buying and making the product in this case study. Then‚ based on the manufacturing costs‚ I calculate the differential cost and the differential profit and decide whether to buy or make the product. The process of each calculation is described in as follows. Firstly‚ in case of buying the product‚ subassembly costs are $128‚000 ($ 16 × 8‚000 Units). Fixed factory overhead applied are $48‚000 ($ 6 × 8‚000 Units). Through these studies
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Part I.c – Summary of Observations Including Assessment of Business Risk Based on the financial ratios calculated‚ it appears that Pinnacle Manufacturing (the “Company”) is both using up cash assets and increasing its debt. The Cash Ratio has declined each of the past three years indicating that the Company has a decreasing ability to pay its current liabilities from cash and will be required to liquidate assets to pay off current liabilities. The Current Ratio has also declined each of the
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14-34 ( Objectives 14-3‚ 14-5 ) In Part III of this case study‚ you obtained an understanding of internal control and made an initial assessment of control risk for each transaction-related audit objective for acquisition and cash disbursement transactions. The purpose of Part IV is to continue the assessment of control risk by determining the appropriate tests of controls and substantive tests of transactions. In order to do this‚ you must complete the steps needed to prepare a high-quality performance
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Healing Scriptures King James Version Exodus 15:26 King James Version (KJV) 26 And said‚ If thou wilt diligently hearken to the voice of the Lord thy God‚ and wilt do that which is right in his sight‚ and wilt give ear to his commandments‚ and keep all his statutes‚ I will put none of these diseases upon thee‚ which I have brought upon the Egyptians: for I am the Lord that healeth thee. Exodus 23:25 King James Version (KJV) 25 And ye shall serve the Lord your God‚ and he shall bless thy bread
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analysis. CLIENT NAME: | Pinnacle Manufacturing Company | DATE OF FINANCIAL STATEMENTS: | For Period/Dates Ending December 31‚ 2009‚ 2008‚ 2007 | LIQUIDITY RATIOS 2009 | 2008 | 2007 | | | | | Current Assets | 44‚497‚169 | 36‚195‚745 | 36‚005‚390 | Current Liabilities | 25‚926‚158 | 17‚605‚301 | 16‚340‚517 | 1. Current ratio = | 1.72 | 2.06 | 2.20 | Comments: Current Ratio is greater than one‚ suggests that Pinnacle can pay of their current |
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After reviewing the information about the asset‚ debt‚ and equity it does not appear that the company has improved for the given two years. The assets all together are in fact lower than the prior year. The company earned a lesser amount of money in 2004 than in 2003. The majority of the assets seem to be inventory that has not been sold. In my opinion one should truly see more assets from sales instead of it coming from inventory. The long-term debt essentially has risen between the two years‚ which
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