EBK AUDITING: A RISK BASED-APPROACH
EBK AUDITING: A RISK BASED-APPROACH
11th Edition
ISBN: 9781337670203
Author: RITTENBERG
Publisher: YUZU
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Chapter 2, Problem 25RQSC
To determine

Introduction: Corporate governance refers to keeping an oversight over the organizations operations and financial reporting. Corporate governance ensures that operations are in accordance with organizations objectives and meet the stakeholders’ needs.

To explain: Whether or not the factors describing the audit clients, indicate poor corporate governance. Also, explain the associated risks.

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Cheyenne Company follows the practice of pricing its inventory at LCNRV, on an individual-item basis. Item Quant Cost per No. ity Unit Estimated Selling Price Cost to Complete and Sell 1320 1,400 $ 3.78 $ 5.31 $ 1.89 1333 1,100 3.19 4.01 1.18 1426 1,000 5.31 5.90 1.65 1437 1,200 4.25 3.78 1.59 1510 900 2.66 3.84 1.65 1522 700 3.54 4.60 0.94 1573 3,200 2.12 2.95 1.42 1626 1,200 5.55 7.08 1.77 From the information above, determine the amount of Cheyenne Company inventory.
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