L20 Notes_Part_14 - prices would be increased 10 percent....

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
GAAP Departures Is the departure material? Is the departure justified? Can it be “compartmentalized”? Qualified Report Rule 203 Report Adverse Report No GAAP departure identified Standard Report No Yes Yes No Yes Unreasonable estimate Unacceptable actg method Inappropriate application of GAAP Missing or misstated footnote
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Audit Reporting Problem On January 2, 2000, the Retail Auto Parts Company received a notice from its primary supplier that effective immediately all wholesale
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: prices would be increased 10 percent. On the basis of the notice, Retail Auto Parts revalued its December 31, 1999, inventory to reflect the higher costs. The inventory constituted a material proportion of total assets; however, the effect of the revaluation was material to current assets but not to total assets or net income. The increase in valuation is adequately disclosed in the footnotes....
View Full Document

This note was uploaded on 10/05/2011 for the course ACG 5637 taught by Professor Monikacaushoulli during the Fall '08 term at University of Florida.

Page1 / 2

L20 Notes_Part_14 - prices would be increased 10 percent....

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online