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Essay text:
First of all, for existence or occurrence, all items in the inventory account must physically exist and be available for sale. Thus, the auditors should physically count finished goods, copper rod, and plastic inventories, and determine actual increase of inventories at year end. Also, they should select items from the inventory ledger and locate them and reconcile the quantity. Second, for completeness, the auditors should make sure that all existing inventories have been recorded completely, go around the warehouse and ensure all the inventories are recorded in the inventory ledger. Third, for valuation or allocation, the auditors should make sure that Laramie Wire manufacturing sticks with one valuation method (For inventory items, valuation is based on the lower of cost or market value, with several alternative methods for calculating cost), find out if there is any scrap inventory that needs to be recorded and written off, and ask about obsolescence items...
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Common topics in this essay:
- An Interface Between Financial Accounting And Cost & Management Accounting And Some Concepts Of Strategic Cost Management
- analytical procedure - Laramie Wire Manufacturing
- FINANCIAL MANAGEMENT
- Financial Management, Superior Manufacturing
- financial management
- financial management
- financial management
- financial management
- Laramie Wire Manufacturing
- Laramie Wire Manufacturing
- Managment Accounting, Financial Control, Management Control, Strategic Management Accounting (Sma)
- comparison of Medtronic's financial statements to Baxter's financial statements
- financial statements associated with good organisational management.
- The statement of financial performance is based on data relating to past transactions and events. Hence the statement of financial performance is of no use to an investor’s decision making process.
- manufacturing management
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