Loading

Question

"Internal Controls and Sampling Strategy" Please respond to the following:

  1. Imagine that you have been hired to audit the sales and collections of a medium to large merchandising company. Suggest at least two (2) ways that management could manipulate earnings, and make specific recommendations for the internal control procedure to prevent or detect the transaction. Justify your response.
  2. Discuss the advantages and disadvantages of at least two (2) sampling methods. Make a recommendation for the best method to sample accounts receivables. Support your position.
Top Reviews

Solution Preview

Accelerate revenues: A merchandizing companies can manipulate earning by hiding the payment received for the contract that goes for number of years. Which means if they received total payment upfront, they will show partial payment received to reduce the tax Payable. Accelerate expenses: A company that’s being acquired prepay 

This question has been solved!
OR
OR
Back To Top
#BoostYourGrades

Want a plagiarism free solution of this question ?

EYWELCOME30
100% money back guarantee
on each order.