Half_emplty_half_full_ - HALF FULL OR HALF EMPTY As with...

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HALF FULL OR HALF EMPTY As with many of his audit staff counterparts across the country, Bill Turner spent the last day of the year performing inventory observation procedures. His assignment that December 31 included taking test measurements at a client’s grain elevator in a small prairie community. Bill had measured grain inventories on two previous audits and was the in-charge accountant on this audit. Bill’s observations of the quantity of grain in the elevator fell ten percent below the client’s records. Bill’s attention was drawn to the discrepancy in the two measurements of what was in the elevator because, in his judgment, such a gap was significant enough to be material. The resulting difference between the inventory as reported by the client and the audited amount was enough to cause a significant drop in net income. Bill documented his findings in the working papers and proposed an adjusting entry for the difference.
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This note was uploaded on 11/23/2009 for the course AFM 480 taught by Professor Gb during the Spring '09 term at Waterloo.

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