Accounts Receivable, net83713351121962822
Cost of Sales18122691239919231859
Inventory Turn Days160185199199
AR Turn Days70979583
Gross Operating Cycle230282294283
AP Turn Days33514336
Net Operating Cycle197231251246
The trends show a significant increase in the inventory turn days, an increase in the gross margin for the best result for the four year period, and an improved collection time.
Tolerable misstatement ÷ cogs x 365 = 45 ÷ 1859 x 365 = 7.84
20x5 has significant changes with the combined decrease to purchases with an increase in the gross margin which increased by 52.4%. Inventory turn days increased to 199 days from 183 days. When you combine this result with the expectation range of 7.84 days, the result is significant and shows what could be a potential overstatement of inventory from a possible error in calculations or fraudulent financial reporting.
b.Control activities: Controls over management discretion in financial reporting. c.Control activities: Information processing controls: Computer general controls. d.Monitoring.
g.Control activities: Information processing controls: Computer general controls. h.Control activities: Information processing controls: Computer application controls. i. Control activities: Performance reviews.
j.Control activities: Information processing controls: Computer application controls. k.Monitoring.
l.Information and communication.
n.Control activities: Information processing controls: Controls over the financial...