Indicate Whether You Agree or Disagree with the Following Statements

question 40

Essay

Indicate whether you agree or disagree with the following statements and explain your reasoning.
a) Paula Padgett was performing substantive tests of trade receivables at Neu Lion. She indicated to her staff member, Leona Marshall: "At this client accounts receivable are material in amount. The two assertions that are the most important are the occurrence and accuracy assertions."
b) Emilio Boulrice, CGA was returning from an audit conference where he had entertained his many friends with his musical talents. As he sat in his aisle in the Air Canada flight back home to Montreal, he turned to his friend and said: "Although there is no specific requirement for us to confirm receivables anymore, existence of trade receivables is usually verified by sending confirmations to the client's customers."
c) Mike Gallagher was preparing his staff for the audit of inventory at a major client. He said to his staff: " The two key assertions for inventory are proper cutoff and accuracy."
d) Mona Lincolnshire was assessing the results of her staff's substantive testing procedures. She said: "When performing substantive procedures, the key objective is to determine whether there are material misstatements within the balance being investigated and to quantify the amount of any errors if they exist."

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Definitions:

Fill Orders

The process of completing customer orders to meet their requested delivery schedules.

Delivery Cycle Time

The total time taken from the receipt of a customer order to the delivery of the product, reflecting the efficiency of order fulfillment.

Fill Orders

The process of completing customer orders by preparing and shipping the requested products.

Throughput Time

The total time required to produce a product from start to finish, including processing, inspection, and delivery times.