PA1 asgn04
MODULE 4 ASSIGNMENT
Note:
Before you begin this assignment case, please click the Module 4 assignment link in the online course navigation pane for instructions on how to collaborate with your discussion group on the case analysis and response.
(100 minutes)
Carroway Clothing Limited
Carroway Clothing Limited (CCL) is a Canadian-controlled private corporation (CCPC) that was incorporated 10 years ago. CCL follows accounting standards for private enterprises (ASPE). It is owned by two brothers, Chip and Charles Carroway, who started the company after identifying an opportunity to design and manufacture clothing with innovative fabric. The Carroway brothers have run the business together and have an equal stake in its equity.
You are Rose Reddick, a recently graduated CGA assigned as team leader to complete the March 31,
20X3, financial statement audit of CCL. This is the second year that your firm has done CCL’s audit. The audit planning was completed in early March by Blake Mouton, another CGA in your firm, but he has recently announced he is resigning from the firm. Due to scheduling conflicts and an unusually busy season, he will be unable to continue with the remainder of the audit before he leaves, and you have been asked to take over leadership of the audit team. It is now late April, and the team under Blake’s supervision has completed about two-thirds of the audit field work. The audit is scheduled to be completed by May 15, and realizing that you have a limited amount of time to complete your work on this audit, you immediately begin your review of the work done to date and the available client background information.
Client background
The Carroway brothers started manufacturing athletic wear, utilizing new techniques in fabric treatments to increase the durability of the fabric. CCL’s range of products includes clothing lines for women and men. The products are, primarily athletic wear, but three years ago they added a line of soil-resistant work
Note:
Before you begin this assignment case, please click the Module 4 assignment link in the online course navigation pane for instructions on how to collaborate with your discussion group on the case analysis and response.
(100 minutes)
Carroway Clothing Limited
Carroway Clothing Limited (CCL) is a Canadian-controlled private corporation (CCPC) that was incorporated 10 years ago. CCL follows accounting standards for private enterprises (ASPE). It is owned by two brothers, Chip and Charles Carroway, who started the company after identifying an opportunity to design and manufacture clothing with innovative fabric. The Carroway brothers have run the business together and have an equal stake in its equity.
You are Rose Reddick, a recently graduated CGA assigned as team leader to complete the March 31,
20X3, financial statement audit of CCL. This is the second year that your firm has done CCL’s audit. The audit planning was completed in early March by Blake Mouton, another CGA in your firm, but he has recently announced he is resigning from the firm. Due to scheduling conflicts and an unusually busy season, he will be unable to continue with the remainder of the audit before he leaves, and you have been asked to take over leadership of the audit team. It is now late April, and the team under Blake’s supervision has completed about two-thirds of the audit field work. The audit is scheduled to be completed by May 15, and realizing that you have a limited amount of time to complete your work on this audit, you immediately begin your review of the work done to date and the available client background information.
Client background
The Carroway brothers started manufacturing athletic wear, utilizing new techniques in fabric treatments to increase the durability of the fabric. CCL’s range of products includes clothing lines for women and men. The products are, primarily athletic wear, but three years ago they added a line of soil-resistant work