Auditing
Contents
Executive Summary 2
Methodology 3
Introduction 4
Findings 5
A. Inventory balances and purchases transactions 5
B. Trade receivables and credit sales system 5
C. Property, Plant and equipment (PPE) 6
D. Trade payables transactions and balances 6
Implications 8
A. Inventory balances and purchases transactions 8
B. Trade receivables and credit sales system. 10
C. Property, Plant and equipment (PPE) 12
D. Trade payables transactions and balances 15
Conclusion The following conclusions have been drawn out with regards to each segment 19
A. Inventory balances and purchases transactions 19
B. Trade receivables and credit sales system. 19
C. Property, Plant and equipment (PPE) 19
D. Trade payables transactions and balances 19
Recommendations 21
A. Inventory balances and purchases transactions 21
B. Trade receivables and credit sales system. 21
C. Property, Plant and equipment (PPE) 21
D. Trade payables transactions and balances 21
Implementation Plan 25
Executive Summary
This report is for Wendig Ltd for the year ended July 2010. The report is focused on highlighting significant audit risks, Key assertions and relevant internal controls concerning various segments of the business namely Inventory balances and purchases transactions, Trade Receivables and Credit Sale System, Property Plant and equipment, Trade payables transactions and balances. The report in the end suggests relevant recommendations for each of the following.
The company has fairly voluminous purchase transactions. The company overcomes the inherent problems of obsolescence and overstocking by tight inventory control. However, The inventory is vulnerable to theft thereby reducing the overall reliability of internal control in terms of faithful representation and undermines quality of operations. Also unrestricted access to warehouse further increases risk.
The company has numerous sales transactions. The company is facing fierce international
Executive Summary 2
Methodology 3
Introduction 4
Findings 5
A. Inventory balances and purchases transactions 5
B. Trade receivables and credit sales system 5
C. Property, Plant and equipment (PPE) 6
D. Trade payables transactions and balances 6
Implications 8
A. Inventory balances and purchases transactions 8
B. Trade receivables and credit sales system. 10
C. Property, Plant and equipment (PPE) 12
D. Trade payables transactions and balances 15
Conclusion The following conclusions have been drawn out with regards to each segment 19
A. Inventory balances and purchases transactions 19
B. Trade receivables and credit sales system. 19
C. Property, Plant and equipment (PPE) 19
D. Trade payables transactions and balances 19
Recommendations 21
A. Inventory balances and purchases transactions 21
B. Trade receivables and credit sales system. 21
C. Property, Plant and equipment (PPE) 21
D. Trade payables transactions and balances 21
Implementation Plan 25
Executive Summary
This report is for Wendig Ltd for the year ended July 2010. The report is focused on highlighting significant audit risks, Key assertions and relevant internal controls concerning various segments of the business namely Inventory balances and purchases transactions, Trade Receivables and Credit Sale System, Property Plant and equipment, Trade payables transactions and balances. The report in the end suggests relevant recommendations for each of the following.
The company has fairly voluminous purchase transactions. The company overcomes the inherent problems of obsolescence and overstocking by tight inventory control. However, The inventory is vulnerable to theft thereby reducing the overall reliability of internal control in terms of faithful representation and undermines quality of operations. Also unrestricted access to warehouse further increases risk.
The company has numerous sales transactions. The company is facing fierce international