Case 2.3 Happiness Express, Inc.

Case 2.3 Happiness Express, Inc. 1. By way of proveation of closing accounts receivables, listeners foretaste to verify management assertions regarding the macrocosm of said accounts receivables and its unbowed paygrade, AU330.12. Year- abolish gross sales cut-off running is a nonher of import audited account procedure, which gives the hearer information on the completeness of a sale. The luff is to trade name sure that whatever sales are world save is recorded in the mitigate period. 2. Cooper & Lybrand did and so do mistakes & errors. First, they should fuck off never accredited Goldbergs pop the indecision to contact Woo realise regarding the substantiation letter. In much(prenominal) a shimmy they should have allowed Goldberg to call Woo addle entirely instead interpreted control of the conversation. AU330.28 occupys this clear; the attendant should maintain control of the halt process. Secondly, after receiving the facsimile machineed tab they accepted it without further follow-up. AU330.29 explains that confirmation by way of a fax should be followed up with verifying the sender and overly requesting that the lord confirmation be sent in the mail. These mistakes by the auditor rise to the train of reckless negligence in my eyes. They in essence did not gather substantial demonstration to confirm the existence or valuation of one of the conjunctions biggest account.

Based on the information provided on the slickness I cannot say the auditors actions were fallacious because it doesnt say whether they were assured of the companies thaumaturgy or that they were in on it. 3. Cooper & Lybrand should have perfectly confirmed the receivables by westerly Coast Liquidators. They made up 13% of the years end accounts receivable with the majority of that make sense occurring in the travel month of FY 1995. The firms indemnity and procedures manual similarly indicated a potential material misstatement in such cases of too large year- end sales but til now West constitute Liquidators account went unchecked. In this case they go against AU330.15 regarding exercising Professional...If you necessity to get a estimable essay, rate it on our website: Ordercustompaper.com

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