(Answer the following questions based on the Accounting for theCollapse of Dick Smithcase. The write-up should haveno more than 1200 words)What was the problem with DSG inventory management? Whatwas the root cause of the inventory management problem? Howdid it affect financial statements? Suggest audit procedures todetect this problem.22:09

Dick Smith Group (DSG) faced significant issues with its inventory management, which ultimately…

Answered: (Answer the following questions based…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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d. Which of the following correctly identifies a risk facing SSC that might affect Its ability to continue as a going concern over the long run? 4 of 6 Multiple Choice Competition from several competitors. 02:16:38 Your CPA firm's decision to issue standard unmodified audit reports not mentioning the going-concern status during the past five years. Obsolescence of all products due to rapid changes in technology in the industry. The nature of inventory items-small in size, high in value. Untitled docume...pdf A Untitled docume..pdf Untitled docume...pdf roj....docx Presentation se..pdf MacBook Ai
Can you write a reply for detect only, thank you
Which of the following is most likely to be detected by an auditor's review of an entity's sales cutoff? Multiple Choice lapping of year-end accounts receivable unrecorded sales for the year excessive sales discounts unauthorized goods returned for credit 3 Multiple Choice Which of the following is most likely to be detected by an auditor's review of an entity's sales cutoff? C lapping of year-end accounts receivable unrecorded sales for the year excessive sales discounts unauthorized goods returned for credit
3) Which of the following audit procedures is a test of control? a. Management providing written instruction to all employees and supervising the monthly inventory stocktake. b. Observing employee compliance with stocktake procedures. c. Picking a sample of goods received notes and ensuring the correct date is recorded in the purchase’s ledger. d. Estimating total sales for a specific product line for the year and comparing actual sales.
Which of the following audit findings would be considered a deficiency in internal controls in the revenue cycle? A. No evidence that price and quantity on an invoice was compared with supporting documentation. B. Quantity shipped differed from quantity billed. C. Recording sales several days before the shipment date. D. All of the above. E. None of the above.
As the auditor of Sample Limited you note the following matters relating to the internal control of its sales system. i) The sales department accepts order without first checking the inventory level with the warchouse, ii) Goods are dispatched to customers without recording customer's signatures as proof of receipt of goods. iii) Orders of goods placed by customers are properly recorded but they are not forwarded timely to the dispatch department for fulfilling the order. For each of the above deficiencies, identify the possible impact on the company's operation and recommend a control to address it. Explain why an auditor cannot perform only test of control in an audit.
A serious exposure in the ordering process of the expenditure cycle is increased inventory costs. What is the related threat and applicable control procedure that address this exposure? A. mistakes in counting; do not inform receiving employees about quantity ordered B. paying for items not received; requiring that all supplier invoices be matched to supporting documents C. purchasing at inflated prices; review of purchase orders D. theft of inventory; periodic physical counts of inventory and reconciliation to recorded quantities E. mistakes in posting to accounts payable; reconciliation of detailed accounts payable to the general ledger control account

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