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Information Nation Has Two Hundred Locations Spread Across the Fifty

question 36

Essay

Information Nation has two hundred locations spread across the fifty states.Twenty of the locations are considered to be individually important,but fifty of the locations are not important even when aggregated from the others.Five locations deal with foreign exchange trading.These locations are not considered important,but they are important when aggregated with the other locations.As an auditor,discuss the considerations involved in testing multiple locations and group the locations accordingly (provide how many locations are included in each group).Include the treatment that each group should receive from the auditor.


Definitions:

Cash Earn

The process of receiving money as a result of selling goods or services, investments, or other business activities that generate income.

Trade Credit

Credit extended by suppliers for the purchase of their goods and services.

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