audit /internl control.., Auditing

Assignment Help:
Ask You are the senior auditor assigned to the team performing an audit for Restorative Pharmaceutical Corporation (RPC), a 10-year-old publicly held corporation listed on the New York Stock Exchange which specializes in anti-aging products such as vitamins protein infused beverages, and dietary supplements. RPC’s corporate office is located in San Diego, CA.

The audit firm’s lead and senior audit manager and firm partner, Scott Payne, CPA, has requested that you develop two audit/internal control procedures which address the following issues which emerged during the past three reviews of RPC:
1.The company has an equal balance of equity and debt which compose its capital structure. It is subject to a number of debt covenants, including its current ratio, which should be maintained above 1.5 per the debt covenant. The year-end current ratio attained is 1.45. There is no opportunity to refinance short term debt and reclassify liabilities to ameliorate the ratio.
2.A number of sample products are provided to fitness centers, health fairs, marathons, and charitable walking events. A significant stock sample pull amounting to $200,000 for the New York marathon was not recorded as an inventory reduction for this promotional event, and was discovered during the physical inventory at year end.
question #Minimum 100 words accepted#

Related Discussions:- audit /internl control..

What is an audit and why there is need for an audit, Question: (a) What...

Question: (a) What is an audit? Why there is need for an audit? (b) Explain the steps the auditor must take before deciding whether to accept the nomination as auditor. (

Computerized accounting practise, You are just appointed as the Trainee Acc...

You are just appointed as the Trainee Accountant of the Compaq Computing Sdn Bhd - the newly established company. The manager is facing difficulties in maintaining the manual accou

Requirements of the companies act, Requirements of the Companies Act H...

Requirements of the Companies Act Here the seventh schedule to the Companies Act gives the matters which must be expressly stated in the AUDITOR'S REPORT 1. Where they have

What are the benefits of internal audits, An audit helps stay track of wher...

An audit helps stay track of where the currency or money is going and makes sure the money is going anywhere it is believed to and not in someone''s pocket. An audit may also help

Ias 12 income taxes, IAS 12 Income Taxes 1AS 12 needs a deferred tax l...

IAS 12 Income Taxes 1AS 12 needs a deferred tax liability should be well known for all taxable temporary difference with minor exceptions as goodwill that is not allowable for

Beneficial ownership and existence, Beneficial Ownership and Existence ...

Beneficial Ownership and Existence Existence Existence of buildings and Land is not hard to display. You may even be sitting in such building.  Conversely, the audito

Assertions about disclosure, Assertions about disclosure Assertions ...

Assertions about disclosure Assertions about disclosure and presentation : a) Rights and Occurrence and obligations -disclosed transactions and events and other issues

What are possible risks, Oversee commission staff to ensure individuals are...

Oversee commission staff to ensure individuals are properly trained and monitored. please provide me with some risks, controls and audit tests for the process above.

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd