Essay about Zoom SnowBoards: Audit Planning Document

Snowboarding is one of the most enjoyed international pastimes. It presents you with this feeling of freedom and raw power as the cold air hits your face while you carve down the almost vertical mountain face dropping over steep clips and carving trough trees. These are just a few reasons why so many people internationally flock to the mountains to partake in this sport. Snowboarding provides people an escape from there comfort zone by pushing them to take on risks they would never have thought off before.

The risk of management fraud needs to be considered when determining tolerable misstatement because the risk of fraud directly affects the risk of misstatement. Smith & Jones has a percentage that tolerable misstatement thresholds should not exceed, which is adjusted tolerable misstatement guidelines, with low risk of management fraud misstatements should balance each other out. However, when high risk of management fraud is likely misstatements will likely skew the company’s numbers to overstate the company’s income (ex. overstating income and understating expenses). If numbers are fraudulently misstated with the goal of increasing income, the chance of highly material misstatements drastically increases.

Throughout time, the progression and evolution of snowboarding has increased greatly. It has gone from non existence in the late 1970’s, to one of the most watched action sports in a matter of thirty-five years. The upward takeoff and popularity of snowboarding relies on two people, Jake Burton and Shaun White. Jake Burton back in 1977 had the vision for what snowboarding would be, but Shaun White had what it took to manifest that vision. Evidence has shown that time brings change in sports, history has repeated itself with snowboarding, this history reflects the time & changes that has occurred in America.

Because the case is nondirected, there is ample opportunity for students to be creative in their solution approaches. Thus, it is impossible to provide a single solution here that is applicable to every student's work. As a starting point in evaluating students' solutions, we provide a solution that is based on the questions contained in online Case Questions section. It is important, however, to recognize that this solution is merely a starting point, and student work should be graded at least as much on the

The next step is to inspect the accounting estimates made by the company. It is another area in which misstatements can easily be occurred. In this area, we will also identify any potential trends that may be offsetting the financial

New accounting rules will affect the company’s revenue recognition in the upcoming year. Many companies such as Rolls-Royce Holdings will be affected by this change. Rolls-Royce Holdings books its revenues even before its services performed. For instance, they sell large engines and maintenance service, and Rolls-Royce Holdings booked the revenue even 1.5 years in advance. They will no longer able to book this unperformed revenues for the upcoming year. The investors will have a better picture on the firm’s revenues based on the new revenue recognition. Some sectors, such as telecommunications, media and pharmaceuticals, are expected to be affected more than others, because the firms recognize revenues before they perform the services. Moreover,

We believe that each set of data has its strengths and weakness. The balance sheet data available for Pinnacle Manufacturing is extremely helpful in evaluating whether certain income statement items could be misstated. As an example, to know the trend in the asset Accounts Receivable: Trade made evaluating the income statement item Bad Debt expense easier. As a result, the financial data for the parent Pinnacle could be cross-referenced more easily.

1.The Days Receivables increase, again effectively removing millions in cash from the facility and leaving it in the hands of the payers. Due to the accounting method used at the hospital (Provision for Doubtful Accounts is shown as an “expense” and does not directly reduce “Net Patient Revenue”), the effect of the $4,224 audit adjustment was not as apparent in this ratio.

1. The implication of this factor is there may be an increased risk of misstatement of bad debt expense and the allowance for bad debts. The auditors may decide to assign a more experienced auditor to this audit area. In addition, the auditors will decide to increase the evidence related to the adequacy of the

| Implication: Increased risk of misstatement of bad debt expense and allowance for bad debts. Response: Assign more experienced auditors to this area. Increase evidence.

The profits have increased for the company with the custom line accounting for 60% of volume and 75% of dollar sales according to this case study. The standard line has seen a continued increase in sales as well. What comes with the increased profit due to the increased manufacturing is the need to put higher amounts of capital into storing the higher inventory. With the company being at capacity, the lead times may not be meeting consumer demands either. The expansion that is needed would initially cost Chad’s Creative Concepts greatly. Without some type of expansion (which would most likely require a new plant), soaring inventory costs will need to be attended to.

It can also be explained why the accountant will choose lower assets, lower profits and higher liability value. It can be explained as it is better to be able to pay off all losses and earn no profit than pay an interest on profit you haven’t earned.

to be the same as the division’s existing business. However, to enter the clothing industry could be a

Accounting transactions are professional occasion that has either a positive or negative budgetary impact on the financial statements. One impact of transactions in a financial statement will increase or decrease the accounts contingent on the transaction that has taken place. The history of revenue that has come or gone from the business will be shown on both financial statements and accounting transactions. Many businesses make several transactions daily. Errors can have a negative impact on financial statements, because the facts come from the accounting transactions

A management dashboard developed with the help of SAP shows how smoothly a critical process is running at a certain point in time. Information from the dashboard helps Burtons users identify inconsistencies a problems that should be monitored more closely.