ACCTG456 Chapter Notes - Chapter 4: Financial Statement, Standard Cost Accounting, General Ledger
8 Apr 2014
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In class #4. 1 assessing inherent risk & assessing preliminary materiality. Securimax limited (securimax) has been an audit client for kfp partners (kfp) for the past 15 years. Securimax is based in waterloo, where it manufactures high-tech armour-plated personnel carriers. Securimax often has to go through a competitive market tender process to win large government contracts. Its main product, the small but powerful terrain master, is highly specialized and securimax only does business with nations that have a recognized, democratically elected government. Securimax maintains a highly secure environment, given the sensitive and confidential nature of its vehicle designs and its clients. In september 2011, securimax installed an off-the-shelf costing system to support the hghly sophisticated and cost-sensitive nature of its product designs. The new system replaced a system that had been developed in-house, as the old system could no longer keep up with the complex and detailed manufacturing costing process that provides tender costings.
