Laramie Wire Manufacturing is a company that specializes in the production of wire and wire-related products. The company has a long history dating back to the early 20th century, and it has a reputation for producing high-quality wire products that are used in a variety of applications.
One of the key factors that has contributed to Laramie Wire Manufacturing's success is its commitment to innovation. The company has always been at the forefront of developing new technologies and processes for producing wire, and it has invested heavily in research and development in order to stay ahead of the competition. This commitment to innovation has allowed Laramie Wire Manufacturing to introduce a number of new products over the years, including wire for electrical and electronic applications, wire for the automotive industry, and wire for the construction industry.
In addition to its commitment to innovation, Laramie Wire Manufacturing is also known for its strong focus on quality. The company has implemented a number of quality control measures to ensure that its products meet the highest standards of performance and reliability. This focus on quality has helped Laramie Wire Manufacturing build a loyal customer base over the years, as customers know they can count on the company to deliver products that meet their needs and exceed their expectations.
Another factor that has contributed to Laramie Wire Manufacturing's success is its commitment to sustainability. The company has implemented a number of initiatives to reduce its environmental impact, including recycling programs, energy-efficient manufacturing processes, and the use of renewable energy sources. This commitment to sustainability has helped the company reduce its carbon footprint and minimize its impact on the environment.
In conclusion, Laramie Wire Manufacturing is a company that has a long history of producing high-quality wire and wire-related products. Its commitment to innovation, quality, and sustainability has helped it build a strong reputation in the industry and establish itself as a leader in the field.
Laramie Wire
Because of this deficiency, goods may have been shipped to customers but never billed to the customer. Auditing Standards AU No. Prerequisites Computer Resources: Course Objectives: This course is designed to provide you with an understanding of professional auditing as practiced in the United States. Laramie Wire Manufacturing Case Laramie Wire Manufacturing, a medium sized company, is planning an initial public offering of its stock in the next two to three years. The auditors need to audit sales account carefully. Laramie uses a hybrid product costing system i.
In the planning of this audit I would advise the staff accountants to make a physical count of inventory. Any reservations the auditor may have to the fairness of the financial statements is stated in the audit report. Also, we will plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. Not a good sign for approval margin. Because it is known how much inventory is stored on the spools, how much room they take up, and how many there are; by using the cost rate structure also provided by the staff Assessing Materiality and Risk Simulation The objective of the audit of financial statements is to enable the auditor to express an opinion if the financial statements are prepared in accordance with an identified financial reporting framework. The financial statements are divided into cycles to better manage the audit and disperse to staff within the firm. Production is done in batches according to orders placed with the firm.
For each batch, machinery is adjusted and calibrated according to the type and size of product to be manufactured, and the size of the batch depends on the amount of product needed. Loan portfolio performance, monitoring, and ongoing credit quality assessments are performed in Walla Walla for all loans. By analyzing the two years against each other, I have noticed that it appears Laramie Wire may be building up their inventory stores. . You are a senior auditor assigned to the Laramie Wire Manufacturing audit.
So, these management assertions that related to it are existence, completeness, rights and obligations, and valuation and allocation. In many cases, the inventory is produced in response to specific customer orders received. Laramie being a manufacturing company may have problems with the management assertion of completeness even though the analytical procedures did not point to any problems. A summary of generally acceptable accounting principles and general financial ethical standards will also be addressed. Focus specifically on each of the five management assertions existence or occurrence, completeness, valuation or allocation, rights and obligations, and presentation and disclosure for the inventory account. Two spools in the finished goods area were tagged as being of the type of residential wiring recently banned by federal safety guidelines.
Financial Audit and Laramie Wire Manufacturing Assignment free sample
Plastics inventory is stored in 4-feet-tall stackable barrels, with approximately 350 lbs. A fourth management assertion Laramie may have difficulties with is cutoff. The different types of products Laramie manufactures all use similar raw materials, so raw materials inventory is stored in a single location, divided only into copper and plastics. Briefly explain identified risks or issues for the inventory account that require further attention, if any. The assertion being used for this would be valuation. Laramie has an existence problem because either it has less inventory than what is stated or there is more storage room than it has documented. For instance, if his promotion is based on the quota, then chances will be higher that he would get involved in fraudulent transactions and therefore large revenues would be recorded at the end of fiscal year.
1 Laramie Wire Manufacturing: Using Analytical Procedures in Audit Planning
One of the three important steps in the audit process, after the client has been accepted, is to plan the audit. The auditor 's opinions and observations are presented to interested parties in the form of the audit report. Generally, people who live in huts are away from civilization in villages. . Focus specifically on each of the five management assertions existence or occurrence, completeness, valuation or allocation, rights and obligations, and presentation and disclosure for the inventory account. Laramie operates out of a single building complex totaling 500,000 square feet, which includes office space 3% , production area 57% , shipping and receiving 15% , and finished goods and raw materials inventory warehousing 25%. A quick visual examination of inventories revealed no problems and well organized production areas.
This is a true fact but not to the extent that people outside of Africa perceive. Therefore, this increase shows either that Laramie has trouble keeping inventory accounts down or net sales are slowing relevant to the amount being produced. As the industry changes, the company should continue reevaluating the cost of goods and labor and compare to recent percentages of sales. For each batch, machinery is adjusted and calibrated according to the type and size of product to be manufactured, and the size of the batch depends on the amount of product needed. Procedures and records for tracking materials upon arrival, through the production process, and into finished goods and shipping, appear to be well designed. The auditors might want to select customer orders at random and determine whether goods were shipped and invoices sent to customers for those shipments.
. This memo was included in the audit working papers, but did not include any documentation from the engagement team. As the insulated copper wire product is completed, it is rolled onto large spools of various sizes, usually in lengths of about 500,000 linear feet. Every level of audit risk has an opposite connection that exists between assessed levels of controls, inherent risk, and level of detection risk… Reporting Practices and Ethics Paper Throughout this paper a summary of the four elements of financial management will be discussed. The production area is divided into three areas, with each area specializing in a particular product group, including residential products, industrial products, and special-order products. The raw materials inventory storage area is located near the shipping and receiving area for convenience.
Find more at www. Simple analytical procedures comparisons, ratio analysis, trend analysis, and common size financial statements are effective as attention directing tools in the planning and final review stages of the audit. The answer to that is no. The reason being because ownership of the spool does not transfer to the customer until arrival Wild, pg. In this case, average machine setup time from start to finish is approximately six hours, which is slightly below the industry average. By looking at just the dollar amount sold, one will not know if the sales amounts were high based on the quantity or based on the unit price per item.
