Case # 1 Laramie Wire Manufacturing: Using Analytical Procedures in Audit Planning February 18‚ 2011 Laramie Wire Manufacturing‚ a medium sized company‚ is planning an initial public offering of its stock in the next two to three years. Laramie operates in a single 500‚000 square foot building complex. Laramie buys copper rod and plastic materials to produce insulated copper wiring. The building complex is composed of 3% office space‚ 57% production area‚ 15% shipping and receiving area
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provided by the inexperienced staff assistant the most obvious analytical procedure to start with is to compare the 2005 financial date with the 2004 financial data. By analyzing the two years against each other‚ I have noticed that it appears Laramie Wire may be building up their inventory stores. I state this because their finished goods inventory has went up from $1‚175‚500 to $1‚654‚500 in just that one year. This is an increase of finished goods inventory of 40%. This is something which I
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Case 8.1 Laramie Wire Manufacturing Auditing Standards AU 329 – Analytical Procedures– Analytical procedures consist of evaluations based on studies of financial and non-financial data. Auditors use analytical procedures for three reasons: planning the nature‚ extent‚ and timing of analytical procedures as a substantive test to obtain audit evidence about particular assertions related to account balances or classes of transactions as an overall review of the financial
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transactions and events‚ and amounts‚ ratios and trends that might indicate matters that have financial statement and audit planning ramifications*. First‚ the auditors should consider information regarding the industry in which the client operates**. In this case‚ average machine setup time from start to finish is approximately six hours‚ which is slightly below the industry average. It means the company is efficient in preparation for production. Also‚ the auditors should compare client data with prior period
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ACC 492 Week 4 Laramie Wire Manufacturing Case Study Assignment Study Guide www.paperscholar.com DIRECT LINK TO THIS STUDY GUIDE: http://www.paperscholar.com/acc-492-week-4-laramie-wire-manufacturing-case-study-assignment-study-guide/ Instantly Download! Get Better Grades in Less Time! 100% Satisfaction Guarantee Resource: Case 8.1: Laramie Wire Manufacturing: Using Analytical Procedures in Audit Planning from Auditing Cases: An Interactive Learning Approach located on the Week Four Materials
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Case 8.1: Laramie Wire Manufacturing: Using Analytical Procedures in Audit Planning 1. Perform analytical procedures to help you identify relatively risky areas that indicate the need for further attention during the audit‚ if any. 2. Focus specifically on each of the five management assertions (existence or occurrence‚ completeness‚ valuation or allocation‚ rights and obligations‚ and presentation and disclosure) for the inventory account. Link any risks you identified for this account
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Running Head: THE WIRE ROPE WIRE ROPE STUDY ANGELICA JAGNAAN TORRALBA DATE OF SUBMISSION: APRIL 30‚ 2017 THE WIRE ROPE ABSTRACT This case study is about the human behavior of an employee between Red Wire Corporation (RWC) and Green Rope Inc. (GRI). They are both Wire Rope industry that made them competitors for decades. This case will help us to learn how to handle critical situations and study their behaviors. This case shows how the employee to be a loyal and responsible to his
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The Laramie account is a big account. It is a big account because this is the first time they are having a full-scale audit of their financial statements and they are planning to go public and become an initial public offering (IPO). Since this is our first time this is happening we have to very careful with the analytical procedures. Analytical procedures are reasonableness test auditors compare their estimates of account balances with those recorded by management. Analytical procedures must be
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Final Exam Paper The Laramie Project Over spring break‚ I went home and saw The Laramie Project at my high school. Before seeing the play‚ I knew a brief overview of what had happened in Laramie‚ Wyoming‚ but did not know the details. I knew that Matthew Shepard was a gay‚ male‚ college student who was brutally murdered from a hate crime. When I first got to the auditorium‚ I could barely find my seat because the entire place was packed with people‚ and I knew it had been a sold out show.
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Mexican Wire Works Case Study Abstract Mexican Wire Works is a producer of wire windings used in making electrical transformers. This company has the good fortune of booking more orders then they can fill. The company has ordered new equipment to help in the long term‚ but they still have a short term issue. In addition‚ the company is refinancing long term debt and needs profits to be as high as possible to counteract the effects of this refinance. The problem is to select the orders that
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