Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. while completing the audit of dayside llc, the ext

While completing the audit of Dayside LLC, the external auditors, Daybreak CPA Firm have noticed...

70.2K

Verified Solution

Question

Accounting

image
While completing the audit of Dayside LLC, the external auditors, Daybreak CPA Firm have noticed that for revenue entries up to three months old, no inventory has been shipped out accordingly. Based on this, what is the auditors' most likely conclusion and course of action? The auditor is likely to conclude that an increased risk of fraud is now present, and will attempt to obtain written assurances from management that the entries are not fictitious. The auditor should presume this represents a fraud risk, and attempt to verify the sales transactions as well as why inventory has not been shipped out. The auditor should presume that the revenue entries are fictitious and propose adjusting entries to remove these from the books: The auditors should assume that the client is committing fraud, and examine inventory turnover ratios throughout the year to corroborate this

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Psychology
1.2K views

What is working memory capacity. Explain also how can you use the working memory principles explained...

General Management
1.2K views

1. Nonprofit Financial Statements do not include a Profit/Loss Statement whih is an important financial statement...

Basic Math
1.2K views

Constable Industries prepared a 2019 budget for 165000 units of product Actual production in 2019...

Basic Math
1.2K views

Find the derivative of the function 5 7 dy y 3 x N X

Basic Math
1.2K views

A group consists of 6 men and 5 women. Four people are selected to attend...

Calculus
1.2K views

Suppose 0?x? 2?. Find all solutions that satisfy the equation: cos(x) = -0.63Round your answers...

Algebra
1.2K views

7 points Use the synthetic division to decide whether the given number k is a...

Accounting
1.2K views

Writing a trigger that sets a Account Manager/Account Team field for an Account anytime theres...

Accounting
1.2K views

When MANILA Bank folded up due to insolvency, Bong had the following separate deposits in...

Accounting
1.2K views

please solve c, thank you! On January 1.2026, Blossom...

Accounting
1.2K views

7. [-/1.81 Points] DETAILS TANAPMATH5 9.4.036 Let f(x) = 4x5/4 + 4x3/2 + 6x. Find...

Accounting
1.2K views

Pup N' Suds ...