Explain the impact of each of these separate issues

Assignment Help Accounting Basics
Reference no: EM133175029

Question - You are an audit field senior at Bailey & Associates and have noted the following independent issues in relation to the audit of Sleek Ltd:

(i) The accounting system at Sleek Lid did not operate effectively during the first year of operations. Consequently, some general ledger accounts had to be based on estimates, as the actual data relating to these balances had been lost.

(ii) Due to increased competitive pressures, Sleek Lid has recently moved the manufacture of some of its clothing lines out of Melbourne into regional areas. While Sleek Lid saves around 20% in costs, the manufacturing process takes longer and on several occasions late delivery has resulted in lost sales.

Required - Explain the impact of each of these separate issues on your assessment of audit risk, the materiality level and the audit strategy that would be adopted.

Reference no: EM133175029

Questions Cloud

What are the relevant costs and benefits of expanding space : Joseph wants to expand the shop by leasing the space next door for $1,000 per month - What are the relevant costs and benefits of expanding space
What is meant by product diversification : 1) What is meant by product diversification? Explain with example. 2) what is the difference between mergers and acquisitions
What is the purpose of requiring insurers : a. What is the purpose of requiring insurers to meet risk-based capital requirements?
Distinction between primary and secondary research : What is the distinction between primary and secondary research? Identify some secondary research sources.
Explain the impact of each of these separate issues : Explain the impact of each of these separate issues on your assessment of audit risk, the materiality level and the audit strategy that would be adopted
Job analysis for the position of national site manager : Job Analysis for National Site Manager - role of National Human Resources Manager of CupNBake Café Company and complete a Job Analysis
External business environment : 1. Cite the relevant natural environment of a certain business.
Assess team-based compensation systems : you are an HR consultant who was recently hired by a cereal factory that is planning to implement team-based compensation for the first time.
Define the research objectives : Identify and define the research objectives, research questions and the hypotheses (quantitative) or assumptions/ proposition (Qualitative) as well as to DRAW t

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd