The control environment reflects the companys attitude

Reference no: EM13583309

The control environment reflects the company's attitude, awareness, and actions of management and the board concerning the importance of control and how it is used.This is very relevant to an auditor%u2019s consideration of inventories and should include: a) commitment to competence and HR policies and procedure;b)integrity and ethical values;c)organizational structure and assignment of authority and responsibly.

Central Park Associates CPA is conducting an audit of a U.S. manufacturing company. When reviewing the company's inventory policy and physical inventory policy, they noted the following facts: 1) Physical inventory will be conducted this year by temporary workers, at a wage cheaper for management than the "regular" workers; 2) Approvals for purchase orders with discounts are not required any longer; 3) The shop manager is no longer responsible for the physical inventory, it is now responsibility of the CFO; 4) The physical inventory will be held four days after year end.

1. What aspects of the control environment is affected by the companies decision to hire temporary workers?

2. What aspect of the control environment is affected by the company%u2019s decision to no longer require approvals for purchase order discounts?

3. What aspects of the control environment are affected by the company%u2019s decision to no longer have the shop manager in charge of inventory?

4. What aspects of the control environment is affected by the companies decision to hold the physical inventory four days after year end?

Reference no: EM13583309

Questions Cloud

Most mental disorders lie on a continuum with normal : most mental disorders lie on a continuum with normal behavior at one end. for example nearly everyone has a fear of

Sturgeon company manufactures microchips on a highly : sturgeon company manufactures microchips on a highly automated assembly line. sturgeons costing system uses two cost

Alpha company plans to expand into a new geographic area : alpha company plans to expand into a new geographic area. the executives and shareholders expect the following events

The ceo of star coffee is interested in reviewing the may : the ceo of star coffee is interested in reviewing the may 2014 performance report for cost center 7-11. prepare a brief

The control environment reflects the companys attitude : the control environment reflects the companys attitude awareness and actions of management and the board concerning the

After making an adequate accounting of the expenses maxine : maxine incurs the following employment-related business expenses in the current yearprofessional dues and subscriptions

A 30 ib backpack is thrown at the student who reaches out : a 200 ib student sits on a 25 ib chair. the radius of gyration of the student is 0.3 ft and the chairs radius of

Using the direct method how much did lehman show as a gain : lehman company income statement fye 123113 sales 676300 cost of goods sold 350000 gross profit 326300 operating

Using the weighted-average method assign aprils costs to : during april the production department of a process manufacturing system completed a number of units of a product and

User Account

All Pages