Audition and Co.,CPAs,has just been retained by the Sullivan Company to audit Sullivan's financial statement for the last fiscal year.Sullivan Company shows substantial amounts of inventory on its balance sheet.
Alex Rodriguez has just joined the staff of Audition and Co.and has been assigned to assist in the audit of Sullivan's inventory.
Required:
Identify the major issues regarding the inventory of Sullivan Company that Alex needs to consider in determining if Sullivan has properly accounted for and reported its inventory.

Question

Quizplus · Accepted Answer

The Answer of Audition and Co.,CPAs,has just been retained by the Sullivan Company to audit Sullivan's financial statement for the last fiscal year.Sullivan Company shows substantial amounts of inventory on its balance sheet.
Alex Rodriguez has just joined the staff of Audition and Co.and has been assigned to assist in the audit of Sullivan's inventory.
Required:
Identify the major issues regarding the inventory of Sullivan Company that Alex needs to consider in determining if Sullivan has properly accounted for and reported its inventory.