Auditing Assignment Example | Topics and Well Written Essays - 1500 words

Auditing - Assignment Example This report will discuss several audit problems which can impact the materiality of financial statements. Wentworth Brewster limited specializes with the manufacture of sports equipment. All the products are sold to specialist retailers and private member gym clubs. The company owns a large number of freehold premises than it generally requires. The surplus office is usually sub-let to three other businesses. All sales are on a credit basis and customers are authorized and credit checked by the credit controller before an account is being set up. Detailed records on stocks are also maintained. The audit risk areas for Wentworth relate to debtors, stocks, claims on damages and rent income. Debtors have been circularized and no evaluation on replies and follow ups on non-replies had been done. There was also a dispute from a particular debtor with regard to account balance. There were also slow-moving stocks whose valuation was questionable. Rental income had not been audited since it was argued that its amount was less than that of sales income. Finally, there were no provisions made for claims or contingency. The audit duration will be a period of one month and the audit team will from time to time visit the site to obtain information. Communication shall also be done via emails when necessary. Debtors The main purpose of circularizing debtors is to obtain evidence regarding the ownership, existence and value of debtors in the financial statement. Debtors are third parties and thus are considered to be an external source of information. Obtaining evidence from different sources or types especially from third parties increases the level of assurance (Kumar and Sharma 2006). Circularization is done by writing to debtors directly requesting them to confirm their account balances. Debtors’ circularization can either be positive or negative. In positive circularization, the debtors are required to respond whether they agree or disagree to the contents of the circular. In negative circularization, the debtor is required to respond whether they disagree with the contents of the circular. The major drawback of negative circularization is that in case the debtors fails to reply to the contents of the circular, the auditor assumes that he is in agreement with the contents of the circular. The auditor of Wentworth Brewster limited sent circulars to a sample of 30 debtors to confirm year end balances. There were replies and non-replies to the circular. Second request was done to non-replies where some debtors replied but five did not reply. One of the debtors who failed to reply had a zero balance while three of these debtors had balances ranging between ?5,000 and ?20,000. There were no follow ups done on these accounts. The fifth customer was a major customer, Multi-gym ltd and had a yearend balance of ?145,000. The audit senior had discussions with the credit controller of Wentworth with regard to this account as part of the follow up proce ss. According to the credit controller, Multi-gym limited had disputes on a number of invoices worth ?95,000. The amount related to a model of rowing machines bought from Wentworth and Multi-gym disputed that the machines were inefficient as they kept on jamming every time. Upon the receipt of replies, the

Minnie Essay Example | Topics and Well Written Essays - 2000 words

Minnie - Essay Example In the first stanza it is described about how the "sweet and cute" little Minnie becomes a responsible sister "at the age of four". In spite of her tender age since a baby boy is borne after her she has to take care of him. The line 'you are the big sis' connotes that the caring attitude and attention of the elders is now diverted from the girl child to the baby boy. Not only that, the girl is considered as big enough to take care of her little brother. The girl succumbs to the pressure of the elders and makes "compromises" throughout her childhood. Here "compromises" means the character Minnie has abandoned her rights of being loved and cared in her playful days for the reason that she is borne as a girl child and there is a boy already there who deserves more attention as per social norms. The second stanza provides a good continuity to the narration where Minnie, the character of the poem is in her youthful years. By the line "Wedding bells and diamond ring" it is intended that a girl in her nubile age can be of very romantic and contemplative about the beauties of everything. She dreams of love, romance, and an understanding life partner. The beautiful days, she dreamt of are not so long lasting for her. After marriage she hears from everybody that she has grown up to a "wise woman" and she should make adjustments with her husband, with the in-laws and with every situation. The line "Prudent Woman, respect man" is intended to the voice of the society which clearly speaks of male dominance and their presence at the helm of affairs. The allusion of male chauvinism can be very well deciphered from the above line. The third stanza typically describes the plight of woman particularly during her old age. Minnie is now completely alone. She has her children but has been deserted by all. Though she has poured her love, affection to all members of her family but those are hardly remembered by them. A widow who has not learned to face the challenges of the outer world often cries in the lone life. But what she can do except accepting the situation as they are and making compromises. The poem reiterates the prevalence of gender discrimination in the contemporary society, where woman has to take a backseat in the social hierarchy. Least importance is being given to their cause and comfort. Throughout their life they suffer by adjusting to the adverse situations. A Short Story: Independence Day It was an early awakening for Zayed. He sat and looked at his Grandpa's photograph. Usually, he wakes at six (of course after Mama's yelling), keeps his bedding and sleeping mat in proper place, brushes in few seconds and goes out to bring a pouch of milk. Everyday Zayed used to