In your 2013 audit of B. Industries, you found several issues tha.docx

  • No School
  • AA 1
  • 4

This preview shows page 1 - 3 out of 4 pages.

Image of page 1
In your 2013 audit of B. Industries, you found several issues that you think may indicate possible to the company's books. These issues are listed below. Management does not want to make any adjustment to the books, as they prefer not to revisits old records once a fiscal year has ended. Planning materiality for the company's audit was $100,000, determined by computing 5% of expected income before taxes. Prior to any adjustments, actual income before taxes on B Industrial financial statement is $1,652,867. Possible Adjustments : 1. Several credit memos that were processed and recorded after year-end relate to sales and Account Receivable for 2013. These total $ 23,529. 2. Inventory cutoff test indicate that $22,357 of inventory received on December30, 2013, was recorded as purchase and Account Payable 2014. These items were included in the inventory count at year end and were therefore included in ending inventory. 3. Inventory cutoff test also indicate that several sales invoices were recorded in 2013 for goods that were shipped in early 2014. The goods
Image of page 2
Image of page 3

You've reached the end of your free preview.

Want to read all 4 pages?

  • Fall '19

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Ask Expert Tutors You can ask You can ask ( soon) You can ask (will expire )
Answers in as fast as 15 minutes