Your PA firm audits the Barney Bloke Parts company,which manufactures plastic bumpers and other automobile parts in eight factories scattered across southern Ontario.The company has a December year end.It is now November 15.
The planning file indicates that internal controls in the accounts receivable area are poor,as there has been significant employee turnover.A review of the prior year's working paper file indicates that there was a poor response to the accounts receivable and accounts payable confirmation requests.There were several errors in inventory pricing and problems with obsolescence.
Required:
List the financial statement cycles that need to be tested.For each cycle,identify at least one transaction that needs to be examined.For that transaction,identify a management assertion that may have a high risk of error associated with it and explain why you believe the risk of error is high.

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The Answer of Your PA firm audits the Barney Bloke Parts company,which manufactures plastic bumpers and other automobile parts in eight factories scattered across southern Ontario.The company has a December year end.It is now November 15.
The planning file indicates that internal controls in the accounts receivable area are poor,as there has been significant employee turnover.A review of the prior year's working paper file indicates that there was a poor response to the accounts receivable and accounts payable confirmation requests.There were several errors in inventory pricing and problems with obsolescence.
Required:
List the financial statement cycles that need to be tested.For each cycle,identify at least one transaction that needs to be examined.For that transaction,identify a management assertion that may have a high risk of error associated with it and explain why you believe the risk of error is high.

Your PA Firm Audits the Barney Bloke Parts Company,which Manufactures