INVENTORY BALANCES AND PURCHASE TRANSACTIONS

by | Sep 15, 2021 | Homework Help

A. INVENTORY BALANCES AND PURCHASE TRANSACTIONS Although fairly voluminous, purchase transactions at wending are not complex. Inventories are tightly controlled so that overstocking and obsolescence are normally not a problem. Inventory, although not as liquid as cash, is subject to theft. At wending, finished packaged products are shipped immediately to customers, although large quantities of purchased merchandise are maintained on hand. The personnel handling purchases and inventory transactions are, in general, competent. Access to the warehouse is unrestricted.B.TRADE RECEIVABLES AND CREDIT SALES SYSTEMThese transactions are not particularly complex at wending. Nor (except for the allowance for doubtful debts account) is there any degree of estimation involved. The persons processing revenue and trade receivables transactions are thoroughly familiar with the procedures and are generally competent. Sales transaction processing does, however, entail the completion of many transactions. Competition from overseas is becoming an issue, and because of the poor general economic conditions some customers have requested ex tensions of time to pay.I want to know any significant audit risks with reference to the relevant facts and the key assertion at risk, and any controls relevant to the audit, thanks!

Plagiarism-free and delivered on time!

We are passionate about delivering quality essays.

Our writers know how to write on any topic and subject area while meeting all of your specific requirements.

Unlike most other services, we will do a free revision if you need us to make corrections even after delivery.