Audit Program

Gabe's Auto produces and sells an auto part for $30.00 per unit. In 2010, 100,000 parts were

Qantas has strict rules for suppliers, outlined in the Qantas Supplier Requirements, the terms and conditions that are binding on contractors engaged with Qantas(QAL, 2010, p.45). Qantas pay high attention

ii. There was also no information that Holt Renfrew received about whether the merchandise shipped by the suppliers was of the right quality or quantity.

In order to maintain an effective supply chain, Air Canada must evaluate suppliers by analysing qualifications and competencies. These suppliers must demonstrate best practices, maintain a strong financial position, demonstrate a respect for the environment and meet applicable legal, regulatory, safety, security and operational requirements. These suppliers must share same vision and mission in achieving growth and increasing product value. Establishing a win/win relationship to attain objectives and goals. PEST analysis allows Air Canada to discover new technological advancements within suppliers such as new products and IT systems. On the

The main source used in planning the audit is the WesFarmer’s annual financial report together with the relevant

Absorption costing is used for all outside reports. All non-direct fixed costs are allocated using various allocation bases as indicated throughout the project. The Company does not use a full ABC costing system; however, it does employee some of the ABC concepts in the budgeting process.

1. If the company had dropped product 103 as of January 1, 1993, what effect would

This paper contains the summary of the details and results of the audit tests on

The chief executive of the company was closely working with the vendors whose confirmations were vital in the auditing work and hence they could have submitted false confirmations. The auditing firm established a national risk management program for its clients and so national reviews were done to identify the high risk items in the financial statement. The vendor allowances were particularly high but they were not documented. As such, the auditors were supposed to demand for the documentations and compare them with the real figures. It is however noted that most of the documentations received were non-standard and this could have led to a different audit report given that vendor allowances were earlier identified as a high risk area. Inventory management was found to be poor especially in the allowances for inventory reserves. The audit firm was therefore obliged to carry out a thorough evaluation of the inventory reserves and determine whether it was reasonable. The valuation was also supposed to include all classes of inventory but for the case of the company, the evaluation excluded instances where no sales had been made. Hence, this evaluation could not accurately represent the position of the inventory reserve in the company. (Waters,2003)

o The auditors should have done further testing should have been performed to discover the

The Australian company Bellamy’s organic formula has huge demand as per various news articles and reports published all over the news. Compared to its competitors, cost of Bellamy’s formula has been reasonable and also known to be the best in quality. These two factors have made Bellamy’s, the most competitive and the largest supplier of baby formula in Australia. There weren’t any allegations against the company regarding the quality of the product supplied, the price at which the product retailed or even the company’s relations with its customers.

It is no doubt that the ultimate problem rising in the case is miscommunication. Communication is utmost vital for both parties – purchasers and suppliers- to interact effectively, hence, to conduct business smoothly. On the other hand, it is also a lack of competency of Avion, Inc.’s procurement managers as they were unaware of such obvious changes in volume and delivery time required for operation though they deal with the flow of material on a day-to-day basis. They could not identify the problem, but also did not even bother initiating inquiries with

When engaged in auditing a public firm, such as Apollo Shoe Inc., an auditor must determine when to trust in the company’s internal controls and when to ascertain auxiliary testing methods are obligatory to analyze control risks. The sales and collection cycle is rather a substantial fraction of the audit because this unique segment employs a multitude of documentation and records ranging anywhere from customer and sales orders, shipping documents, credit memos, and general journal entries; therefore, a working

A review does not give a premise to the express of opinion in light of the fact that a review does not include acquiring an internal control structure or evaluate control risks, tests of bookkeeping records and of reactions to request by getting

| * David should keep a straightforward and honest relationship with MAL. * David integrity will be compromised if these errors are discovered.