Audit Coorespondence Letter

Audit Correspondence Paper Individual Assignment #2 Week Two invoice Theory and Research Acctg 541 June 8, 2009 Mr. mob Johnson Dear Mr. Johnson, This letter is in response to questions and concerns regarding the five effective stops listed below that our firm previously request superfluous information for in fix to complete the 2008 pecuniary conformation audit. Mr. Johnson, below I have listed the five spots that concerns the confederacy at this time. They include: 1. Adjusting the lower cost of grocery on strain valuation. 2. Capitalizing interest on building construction. 3. Recording get unneurotic or exit on asset disposal. 4. Adjusting goodwill for impairment. Mr. Johnson I will explain each of the items listed above in dress which they are listed. The first concern was why I had questions in reference to how your stemma was valuated for cost. The lower of cost or foodstuff for pedigree can be value memorandum third different ways. The first is on a total size up basis. The entropy is by inventory categories and the tertiary basis is item by item. (Source: www.accountingcoach.com/online-accounting-course/27Xpg04.

html#lower-cost-market-inventory, Explanation of the topic; Applying Lower of monetary value or grocery store to Inventory) The first basis which is by total inventory is least conservative because it allows for the lowest ebb in inventory from cost and a lower loss on the income statement. The second basis of apply lower of cost or market results produces a median wh ich falls among the first and third basis m! ethods. The third basis method, which is item by item, is the intimately conservative because it provides the largest decrease of cost from inventory and the largest loss on the income statement. (Source: www.accountingcoach.com/online-accounting-course/27Xpg04.html#lower-cost-market-inventory, Explanation of the topic; Applying Lower of personify or Market to...If you want to get a beneficial essay, order it on our website: OrderEssay.net

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