Adjustments. In Your Audit of Lomar Company for the Calendar Year

question 96

Essay

Adjustments.
In your audit of Lomar Company for the calendar year 2014, you find a number of items that you believe represent possible adjustments to the company's books. Management does not want to make any adjustments.
REQUIRED:
Assuming that Lomar is a public company describe how the adjustments might impact your audit report on internal control over financial reporting.

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Definitions:

Invoice Price

The price listed on an invoice, representing the amount charged by the seller to the buyer for goods or services provided.

Sales Tax

A tax imposed by a government on the sale of goods and services, typically calculated as a percentage of the purchase price.

General Journal Entries

Recorded business transactions in the general journal, forming the foundation of a company's financial records.

Terms of Sale

Conditions agreed upon by the buyer and seller regarding the delivery, payment, and transfer of ownership of goods.