Examlex
Restaurant Products Company (RPC)has been an audit client of your firm for many years.RPC has a March 31 fiscal year end.The company is a successful distributor of restaurant and food industry products such as trays,weigh scales,dishes,and cooking implements.The company sells to businesses only (not to end-consumers),with clients ranging from small restaurants to large food-service chains and hotels.The company has a perpetual inventory system but the current inventory system relies upon accurate data entry of receipts,shipments,and inventory adjustments from paper documents.
RPC is looking to improve inventory management and maintain costs in the face of rising competition and growth.Accordingly,it is implementing RFID (radio frequency identification)technology for its inventory.RFID chips will be placed on warehouse shelf locations,boxes of products,and on high-cost individual products.At the same time,the company will implement a wireless mesh system throughout the warehouse,with wireless tracking of product movement.Effective January 31 of next year,a new inventory management system will be implemented to facilitate better decision making and access to online real-time inventory data.The new inventory management system will include a new database that will include internal records of inventory on hand,receipts and shipments of inventory,purchase order details,and payment details.
Required:A)For each phase of the financial statement audit process,describe the phase,and explain how the audit process will be affected by the implementation of the new inventory management system.B)What is the impact of the implementation of RFID on the financial statement audit process? Note that these points must be different from those raised in requirement A.
Antihistamine
A type of medication that counteracts the effects of histamine, improving allergy symptoms.
Inflammation
A biological response to harmful stimuli such as pathogens, damaged cells, or irritants, characterized by redness, swelling, heat, pain, and often loss of function.
Immunoglobulin
Proteins in the blood plasma produced by B cells that act as antibodies to help fight infections.
Q2: A)Discuss what is meant by the term
Q8: When the auditor identifies an area of
Q20: Identify the factors that would potentially lead
Q50: Access rights management is important because it
Q51: Georgina was working as the part-time accountant
Q57: Joan has been the payroll supervisor at
Q59: The careful and timely preparation of all
Q83: With the use of electronic working papers,each
Q97: A common way to evaluate the adequacy
Q128: The emphasis for the audit of sales