MGT223H5 Study Guide - Quiz Guide: Curt Hawkins
Document Summary
Mgt421 in-class assignment #2 (fall 2010) dunder chemical. Role = obtaining background information for the audit of dander. Audit appears to have been accepted (can speak to, but not focus of role) No b/c stated in case firm is auditing client. Major concerns in the audit of dander and why they are potential problems. Appropriate approach to investigating significance of each item listed above. Dander and previous auditor dispute over proper valuation of work-in-process (wip) inventory and inclusion of inventory that has not been delivered, but for practical purposes been completed and sold". Concern because inventory may be significant balance sheet item and needs to be properly valued. Potential problem is overstatement of sales and valuation of wip. Approach could be to obtain comfort over valuation of inventory possible use of specialist, and to analyze revenue recognition criteria of inventory not delivered, i. e. risk/rewards transferred may want to ask for contract and view terms.
