Case 8 1 laramie wire manufacturing using

An interactive Learning Approach located on the Week four materials page. Auditing Standards AU No. Laramie is a medium-sized company that buys copper rod and plastic materials used to make insulated copper wiring.

This case addresses the use of analytical procedures in the planning stage of the audit. Prepare written answers to the follow the case. It is not intended to illustrate either effective or ineffective handling of an administrative situation. The company is planning an initial public offering IPO of its stock in the next two or three years and has hired your firm to conduct its first financial statement audit in preparation for the upcoming IPO.

In fact, although Laramie has previously engaged accountants to perform limited review services for the purpose of obtaining bank loans, this is the first year Laramie has contracted for a full-scale audit of its financial statements.

Laramie supplies insulated copper wiring in the northeastern part of the United States. General Academic Questions Already graded. This is the first year your firm has conducted the audit for this particular client.

During planning, analytics help the auditor gain an overall understanding of the client and its business environment. The information is listed below. You are a senior auditor assigned to the Laramie Wire Manufacturing audit.

Use as a perfect guide! You are in the planning stages of the audit, and you are preparing to conduct some analytical procedures to help you identify risk areas that may require further attention. Because your assistant is new, he is usually not very good about weeding out irrelevant information, so you may not need to use every piece of information he has provided.

The three general uses of analytical procedures listed above correspond to the three stages of an audit in which they are typically used—planning, evidence gathering, and final review.

They also help the auditor plan the evidence that will be gathered in various audit areas by helping the auditor identify potential risks and problem areas requiring more extensive substantive testing.

The company has a good reputation for quality products and has had a good working relationship with its outside accountants over the past 10 years.Resource: Case Laramie Wire Manufacturing: Using Analytical Procedures in Audit Planning from Auditing Cases: An interactive Learning Approach located on the Week four materials page.

Prepare written answers to the follow. Laramie Wire Manufacturing Case Auditing Case Laramie Wire Manufacturing * Days Sales in Receivables Days Sales in Receivables increased 16% from to There may be customers who are not paying due to defective products they purchased.

The auditors need to verify that the receivables exist, are properly valuated, are within. Case Laramie Wire Manufacturing: Using Analytical Procedures in Audit Planning Essay Case Laramie Wire Manufacturing: Using Analytical Procedures in Audit Planning 1.

Perform analytical procedures to help you identify relatively risky areas that indicate the need for further attention during the audit, if any. Laramie Wire Manufacturing Case Renee Hanson Kevin Champlin Manufacturer of insulated copper wire which is supplied to the Northeastern United States Inventory accounts include: Plastics, Copper Rod, & Finished Goods.

2 Case Laramie Wire Manufacturing: Using Analytical Procedures in Audit Planning from Auditing Cases: An Interactive Learning Approach 1. Perform analytical procedures to help you identify relative risky areas that indicate the need for further attention during the audit, if any.

The objective of performing analytical procedures during an audit is to %(40). Case Laramie Wire Manufacturing: Using Analytical Procedures in Audit Planning 1.

Perform analytical procedures to help you identify relatively risky areas that indicate the need for further attention during the audit, if any. %(32).

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Case 8 1 laramie wire manufacturing using
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