How to improve upon the next year

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Assume you are the auditor of Abel Web Design Company. Select four (4) expense accounts  and suggest possible scenarios that could account for the variance between the actual and budgeted expenses. Where applicable, make recommendations to management for controlling the expenses.

Consider the following information when explaining to management possible reasons for the variance between the actual and budget income statement expenses:

The company has a December 31, 2015 fiscal year end.
Sales staff is paid a 6% commission on sales.
The insurance company increased the monthly insurance in October to $230.00 per month.

Problem 1: Mr. Abel is very disappointed that his actual expenses were more than $12,000 off what was forecasted. Can you make two recommendations as to how to improve upon this next year?

Reference no: EM132696500

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