Procurement and Accounting Issues
Abstract
In this case of Toy Central Cooperation the aim is to evaluate company risks and accounting issues facing a Toy Company, and establish how these issues would transform into required particular audit risks. In performing the analyses, there is need to draw on all-purpose information of toys and perhaps to investigate a number of of the accounting procedure issues confronting the Toy Company. Throughout this evaluation and analyses, there is a necessity for the Company to see a need for auditors to regard wide management issues concerning to supply chain management, as well as more advanced procedures relating to accounting and auditing in the Company.
The Accounting Issues Arising with respect to the Delgo movie
According to (Weygandt, at el 2002), the fundamental assertion underlying the use of diagnostic methods involves the study of monetary ratios as a suitable option to the analysis of irregular fluctuations, statistical analysis of the monetary information could result in the detection of biased information in the process of preparing financial statements. Possible associations between data might logically exist and go on, and that the methods fail replace analysis of balances and transactions. When determining whether transactions are recorded, the bearing of the audit analysis ought to be from the general ledger balances, adjusted trial balances, source materials, and the general journal entries. The technique of sampling may be applied in an audit especially if the risk of a material misstatement is low, (Weygandt, at el 2002).
The auditing has to report on the financial statements that sampling was used. The main advantage applying statistical sampling is that it minimizes the level of risk faced in performing a test. The various types of the transaction and financial account affected include cash sale overview of the Revenue Process, credit sale purchases, cash collection purchases, cash sales account
In this case of Toy Central Cooperation the aim is to evaluate company risks and accounting issues facing a Toy Company, and establish how these issues would transform into required particular audit risks. In performing the analyses, there is need to draw on all-purpose information of toys and perhaps to investigate a number of of the accounting procedure issues confronting the Toy Company. Throughout this evaluation and analyses, there is a necessity for the Company to see a need for auditors to regard wide management issues concerning to supply chain management, as well as more advanced procedures relating to accounting and auditing in the Company.
The Accounting Issues Arising with respect to the Delgo movie
According to (Weygandt, at el 2002), the fundamental assertion underlying the use of diagnostic methods involves the study of monetary ratios as a suitable option to the analysis of irregular fluctuations, statistical analysis of the monetary information could result in the detection of biased information in the process of preparing financial statements. Possible associations between data might logically exist and go on, and that the methods fail replace analysis of balances and transactions. When determining whether transactions are recorded, the bearing of the audit analysis ought to be from the general ledger balances, adjusted trial balances, source materials, and the general journal entries. The technique of sampling may be applied in an audit especially if the risk of a material misstatement is low, (Weygandt, at el 2002).
The auditing has to report on the financial statements that sampling was used. The main advantage applying statistical sampling is that it minimizes the level of risk faced in performing a test. The various types of the transaction and financial account affected include cash sale overview of the Revenue Process, credit sale purchases, cash collection purchases, cash sales account
References: Agarwal, N. P. (2010). Concepts of accounting and financial management. Jaipur: RBSA Publishers. Berry, L. E. (2011). Financial accounting demystified. New York, NY: McGraw-Hill. Weygandt, J. J., Kieso, D. E., & Kimmel, P. D. (2002). Accounting principles (6th ed.). New York: John Wiley & Sons.