MGAD10 Shaosifa Case Assignment 2

As focusing on each of the five management assertions for the inventory account, we discovered that there are some risky areas that indicate the need for further attention during the audit. First of all, for existence or occurrence, all items in the inventory account must physically exist and be available for sale. Thus, the auditors should physically count finished goods, copper rod, and plastic inventories, and determine actual increase of inventories at year end. Also, they should select items from the inventory ledger and locate them and reconcile the quantity. Second, for completeness, the auditors should make sure that all existing inventories have been recorded completely , go around the warehouse and ensure all the inventories are recorded in the inventory ledger. Third, for valuation or allocation, the auditors should make sure that Laramie Wire manufacturing sticks with one valuation method(For inventory items, valuation is based on the lower of cost or market value, with several alternative methods for calculating cost), find out if there is any scrap inventory that needs to be recorded and written off ,and ask about obsolescence items. Fourth, for rights and obligations, the auditor should ask them if there is any consigned inventory at their warehouse. If there is, those inventories should not be recorded in the company's inventory ledger. Finally, for presentation and disclosure, the auditors should review the company's financial

When an error of overstatement like this one happens, the financial statements have to be restated in order(ed) to bring net income to the correct amount. The Cost of goods sold should’ve been increased by $8 million and the same

The process requires Peyton Approved to discover how much inventory is sold and what the cost of goods will result in. The process requires the business to review three forms of merchandise inventory to determine which summary benefits the business’s operational behavior. One will discover when assuming that first inventory purchased by the store is the first to be sold, it is determined that the FIFO method displays the best financial outcome for the business. During the process of updating journal entries, one must enter the information proved appropriately into the T-accounts to add the balance under each record. Once the T-accounts for transactions and adjusted transactions are balanced, the next step is to enter the information provided on the balance sheet. The balance sheet will list Peyton Approved assets, liabilities and stockholders equity after added during the T-account process (Nobles, 2014). Once the balance sheet is completed the income statement, statement of retained earnings, and closing entries can be filled with the information proved. This will give the business a full review from journal entry to closing entries of the business for the six month accounting

During 2010, management revised its estimate of the customer list economic life, and began assigning an amortization period of 15 years to newly acquired national customer lists. Amortization expense for the year ended December 31, 2010, was $3 million. To test the economic lives of the customer lists, the engagement team asked management what the reasoning was for the change in the assumed economic life this year. Management provided a memorandum that discussed the rationale for using the 25-year economic life to amortize the various customer lists, as well as the rationale for the current-year change in management’s estimate of the newly acquired national customer lists lives.

In this final paper for Managerial Finance I will attempt to show how the supply chain inventory management method can be affected depending on the situation of the retailer. Studying the control method for problems in inventory, which would include both, excesses in inventory as well as shortages, and hoping to minimize loss.

inventory or product samples (see instructions) . . . . . . . . . . . . . . . .

I would discuss with the supervisor and coworkers about how much percentage of the inventory should be valuated so that auditors can conclude that the inventory has no material discrepancies. And also, I will negotiate with the client in order to have a little more time to finish required valuation of inventory. Since I believe that providing unqualified and faithfully represented financial reports is an essential mission of an accounting firm, and that the investors and governmental authority consider CPAs and auditors should be responsible for the quality of financial reports (the punishment is quite harsh for not doing a good job), I would intend to sacrifice more time and costs for more accurate financial information.

|Inventory turnover |180,000/5000 |36 |N/A |Inventory turnover is calculated to determine how quickly the inventory is used based on the services rendered.|

------------------------------------------------------------------------------------------------------------------------------- ---------------Part C: Ending retail book value of inventory = on paper, how much is your inventory worth (at retail) = = Merchandise available for sale – Sales – Deductions $200,000 - $150,000 - $20,000 = $30,000

|3. Testing the clerical accuracy of the company’s physical |3. Match the quantities at different locations with a computer |

Inventory is one of the things that are important to determine his future business, which supplies very could affect corporate profits. On the other hand demand conditions in the market is very uncertain. Usually tend to be companies that are single-order where only one chance in the booking there is usually at the beginning or at the end of the period. In this case, PT. Dynaforce International, is a distribution company sport. The company's current condition is quite good, but the determination of inventory is still excessive and once upon a time there was a shortage of supplies so that the occurrence of hilanya opportunities. In this case, use the method that is used is the quantitative survey, which is proving a theory will be applied.

The fair value measurement of inventory is difficult to measure since it is based on the price that would be received to sell the inventory. This method creates the need for a hypothetical value to be assigned until the actual sell of the inventory occurs. (Robin

Inventory counts will allow you to better manage stock levels, anticipate demand and prevent loss and theft. When tracking inventory, be sure to include maintenance items, equipment, furniture and any rentals. Because physical inventory counts are monotonous and laborious, consider dividing up the project into different sections or stages. For example, you can count by area or department. This will allow you to perform one part every day and reduce the burden on your employees. Be sure to regularly perform the inventory every quarter and use identical methodology and documentation. After a few years, you will be able to digitize this information into a spreadsheet to analyze past trends and make future

Once they have their inventory under control, the purchasing department should complete a very detailed cost analysis to determine the total inventory cost, including all aspects and hidden fees. Once they have the

Transport plays a critical role in the supply chain and according to Bhattacharya et al. (2014) it is becoming one of the key components of the whole supply chain valuation for many organizations. Transportation is the movement of good from one location to another. Supply chain is a network of individuals, organizations, activities, resources and technology that is involved in formation and sale of a product, which is from the delivery of source materials from the supplier to the manufacturer, through to the end user. Hopkins (2007) states that supply chain professionals look at whole business procedures, which is from raw materials to manufacturing, wholesaling and retailing. And by