AC410-01_Unit 3_Project_Marjorie Bowden]

AC410-01_Unit 3_Project_Marjorie Bowden] - AC410-01 Unit 3...

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AC410-01 Unit 3 Project Marjorie Bowden 4-56 The following are the most commonly used ratio analysis: short term liquidity ratios, receivable ratios, inventory ratios, profitability measures, financial leverage ratios, and capital turnover ratios. The inventory turnover rate is likely to be a little higher in contrast to the current industry information. Another problem I would choose to address would be the variation in days’ sales in receivable given that there is a substantial variation from year to year. Under the one year previous column, there appears to be some fraudulent activities occurring since there was a vast increase in sales growth over the past year when compared to the other years that are comparable. Direct testing for misstatements would be beneficial in providing assurance to those who are making use of the information provided. 4-62 A.  After reviewing the discussion of Lincoln Federal Savings and Loan, the risk areas that should be identified in planning for the audit are the overstatement of the receivables because of a recording error and the allowance for uncollectible may
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This note was uploaded on 08/23/2011 for the course ACC 302 taught by Professor Peoples during the Spring '11 term at Kaplan University.

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AC410-01_Unit 3_Project_Marjorie Bowden] - AC410-01 Unit 3...

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