What action is required if the error is not discovered

Assignment Help Financial Accounting

Reference no: EM13144824

L Company discovered that a three-year insurance premium payment of $240,000 one year ago was debited to insurance expense.
Required:

1. What action is required? Ignore taxes.

2. What action is required if the error is not discovered until 4 years after it occurred?

Reference no: EM13144824

Questions Cloud

Discriminatory hiring practices : An audit client is being sued for $500,000 for discriminatory hiring practices.

Discuss two types of frauds companies face : Fraud is a very real issue in the business world. Discuss the two types of frauds companies face. Who usually commits each type of fraud, the fraud triangle, and how fraud is most commonly discovered?

Discuss why a company would devote such inappropriate amount : Discuss why a company would devote such an inappropriate amount of its security activities to the retention of cash and the prevention of its misappropriation?

How many grams of so3 are produced : SO3 can be produced in the following two-step process: FeS2 + O2 ---> Fe2O3 + SO2 , SO2 + O2 ----> SO3 Assuming that all the FeS2 reacts, how many grams of SO3 are produced when 20.0 g of the FeS2 reacts with 16.0 g of O2?

What action is required if the error is not discovered : What action is required? Ignore taxes. What action is required if the error is not discovered until 4 years after it occurred?

Different types of cells contain different sets : Different enzymes have different optimal temperature and pH requirements.

Find the pmf of the random variables : Uniformly distributed over the set of integers in the range [a, b], where a and b are integers with a

Explain what happens to both motor and autonomic : What is the physiological series of events associated with autonomic hyperreflexia, and why can autonomic hyperreflexia be life-threatening if not detected and treated right away?

General rules and accounting treatments for the parent : Explain the general rules and accounting treatments for the parent and subsidiary, including purchase price allocations; intangible assets, such as goodwill and impairment testing; intercompany transactions, such as payables, receivables, revenues..

User Account

All Pages