Financial Audit and Laramie Wire Manufacturing Essay
1. 1. Perform analytical procedures to help you identify relatively risky areas 2. 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. Focus specifically on each of the five management …show more content…
Your staff assistant assembled information relating to inventories and other items, including a brief description of Laramie’s production and inventory areas. Because your assistant is new, he is usually not very good about weeding out irrelevant information, so you may not need to use every piece of information he has provided. The information is listed below. 2005 2004
Sales $8,450,000 $8,150,000
Cost of Sales $6,242,500 $6,080,000
Finished Goods Inventory $1,654,500 $1,175,500 (Approx. 300 million ft.--2002)
Copper Rod Inventory $2,625,000 $1,650,000 (Approx.