Total Computer Inc Essays

Words: 984
Pages: 4
Open Document
Case 04-1 Total Computer, Inc. Tim Jacobs (Audit Manager) was reviewing the working papers for Total Computer, Inc., a large, privately owned retailer of computer hardware in the United States. Tim is on site at the client’s headquarters and has only two sections to review: inventory reserves and accounts receivable. Inventory Reserves While reviewing the inventory working papers of Total Computer, Inc., Tim focused on the lower of cost or market (“LOCOM”) inventory reserve, which had been identified as an area of audit risk. The working papers included a schedule prepared by the client showing beginning and ending balances, write-offs, and the current-year provision. Sarah Byrd (Audit Staff) summed the schedule and traced the ending LOCOM …show more content…
While reviewing the accounts receivables section of Total Computer, Inc., Tim Jacobs (Audit Manager) noted that the working papers stated that the balances confirmed on Examples 1-4 were “confirmed without exception,” Example 5 had a discrepancy, and alternative procedures were performed on the “no reply” confirmation (Example 6). Tim asked Sarah (Audit Staff) to explain the discrepancy in Example 5. Sarah explained the discrepancy as follows: Betty Bingham (Controller) mentioned that although the typical terms do not allow a customer to return product, except for warranty purposes, this customer had returned a large number of first quality items during the first week of October. This resulted in a proposed audit adjustment in our summary of misstatements as of 9/30/XX. The sixth confirmation, mailed to Dot.Bomb, Inc. (Total Computer, Inc.’s largest customer), was not returned. As a result, alternative procedures were performed, which included examining subsequent cash receipts and the contract. The cash receipts collected as of November 15 (latest available date) totaled exactly half of the amount recorded in the accounts receivable balance as of September 30, 20XX. The working papers stated:

Copyright 2002 Deloitte Development LLC All Rights Reserved.

Case 04-1: Total Computer, Inc.

Page 3

Based on our review of cash receipts through November 15, the customer has paid half of the balance owed as of September 30. Per discussion with the
Show More

Related Documents: Total Computer Inc Essays

Essay on Executive Summary for Apple, Inc.

Apple Inc. Kenya Jordan, Ashley Kirschmann, Etta Stewart, Leah Monego, Rodrigo Ramos ACC/280 March 27, 2011 Glenn Purcell Executive Summary for Apple, Inc. Company History Apple Inc. is a corporation that designs and manufactures computer hardware, software and other consumer electronic products. The company is known for the Macintosh personal computers, iTunes media applications and the iPod personal music players. Apple was founded in April 1976 by Steven Wozniak…

Words 1211 - Pages 5

Essay on Programming Language and Pearson Education

Edition John Lewis William Loftus Copyright © 2014 Pearson Education, Inc. Focus of the Course • Object-Oriented Software Development – problem solving – program design, implementation, and testing – object-oriented concepts • • • • • classes objects encapsulation inheritance polymorphism – graphical user interfaces – the Java programming language Copyright © 2014 Pearson Education, Inc. Instructor • • • • Bruce Link Ph.D. Computer Science 5 years in US research laboratory 18 years at MacDonald…

Words 1840 - Pages 8

Ethics and Legal Issues in Mergers Essay

Designs, manufactures, and markets mobile communication and media devices, personal computers, watches, and portable digital music players worldwide. The company also sells related software, services, accessories, networking solutions, and third-party digital content and applications. It offers iPhone, a line of smartphones that comprise…

Words 1854 - Pages 8

FASHION WEEK Essay

avoid any costly mistakes. Today, many buyers use computer systems that allow them to electronically produce completed purchase orders, but all buyers can construct an excel spreadsheet tha will allow them to perform all of the mathematical calculations they need to ensure accuracy. Key calculations for purchase orders that buyers usually perform include: 1.) Cost extensions 2.) Retail extensions 3.) Total cost of items purchased 4.) Total retail of items purchased 5.) Individual markup percentages…

Words 642 - Pages 3

Financial Analysis Apple Essay

Investment 21 References 22 I. Introduction 1. Apple, Inc. Apple, Inc. was established in Cupertino, California on April 1, 1976 and incorporated January 3, 1997. The company is a multinational corporation that designs and manufactures consumer electronics and computer software products. The company operates more than 250 retail stores in nine countries and an online store where hardware and software products are sold. 2. Google, Inc. Google, Inc. was incorporated on September 4, 1998. The company…

Words 569 - Pages 3

Essay on Business Plan

CompUServe is an upstart computer manufacturing and retail business. We are breaking into the computer age by developing and manufacturing personal computers designed to meet the needs of customers around the world. Personal computers, also known as microcomputers, are computers with a microprocessor as its central processing unit. They are much smaller than mainframe computers. These computers fit well on desks or tables, allowing easy access for users. The personal computer is built for a single user…

Words 1817 - Pages 8

Essay about Accounts Project 1

set includes a Line tool you can use to underscore totals. Before you start filling in the accounting forms, please type your eight-digit student number in the space below. 21,946,851 STUDENT NUMBER: ______________________ Then, follow these steps to complete and submit your project file. 1. In Acrobat Reader, complete the forms included in this file. Check your work carefully, and save the completed file (forms-06168900.pdf) on your computer. 2. Go to http:www.takeexamsonline.com and log in…

Words 494 - Pages 2

Case 1 1 Essay

Case 1-1 Ribbons an’ Bows, Inc. Financial Standing I have been asked to share my opinion on the financial standing, profitability, why the decline in cash after three months, and whether I consider the first three months successful for the business, Ribbons an’ Bows. The summary of the financial situation is presented below, followed by my opinion of the situation. Carmen Diaz opened Ribbons an’ Bows, Inc. on April 1, 2010 from the help of two cousins loaning a total amount of $10,000 and her own…

Words 755 - Pages 4

Explain All Aspects Of Your Decisions To Build The Initial Computer Brands

Explain all aspects of your decisions to build the initial computer brands. The selection made in initial products to manufacture were a result of analyzing the marketing research for the potential wants and needs of the customer, as well as the potential demand for collection of these wants and needs into individual products. The Customer needs and wants research in personal computers indicated three main types of computers rated the highest in demand, and within these three types of computers, there were specific wants for…

Words 4055 - Pages 17

Bright Aluminum Inc. Business Plan Essay

Bright Aluminum Incorporation (BA Inc.) is a manufacturer of light-weight aluminum alloy wheels, with one location in Sebring, Florida. BA Inc. is a start-up manufacturing firm. Along with a significant level of its own capital, BA Inc. hopes to initially make a successful effort to secure start-up financing to begin operations. BA Inc. is looking to conduct operations at its location to meet an ever-growing level of demand for light-weight aluminum alloy wheel products. The company's initial…

Words 1466 - Pages 6