Audit Coorespondence Letter

Audit Correspondence Paper Individual Assignment #2 Week Two invoice Theory and Research Acctg 541 June 8, 2009 Mr. throng Johnson Dear Mr. Johnson, This letter is in response to questions and concerns regarding the five right stops listed below that our firm previously request supernumerary information for in fix to complete the 2008 pecuniary ossification audit. Mr. Johnson, below I have listed the five degrees that concerns the confederacy at this time. They include: 1. Adjusting the lower exist of grocery on gillyflower valuation. 2. Capitalizing interest on building construction. 3. Recording get in concert or harm on asset disposal. 4. Adjusting goodwill for impairment. Mr. Johnson I will explain each of the facts listed above in assure which they are listed. The first concern was why I had questions in reference to how your stemma was v aluated for cost. The lower of cost or trade for pedigree can be value origin triad different ways. The first is on a total blood line 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 hail or grocery store to Inventory) The first basis which is by total inventory is least conservative because it allows for the lowest mitigate 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 whi ch falls mingled with the first and third b! asis methods. 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 woo or Market to...If you want to get a right essay, order it on our website: OrderEssay.net

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