How does the auditor investigate the client’s application of SFAS 144 on asset impairment to inventory in the land development and home building industry? Would the audit procedures be different for auditing impairment issues related to a company’s fixed assets?
Answer to relevant QuestionsThe following audit procedures relate to tests of details of balances for inventory:For raw materials inventory or finished goods inventory that is purchased in final form, select a sample of inventory items from inventory ...Your client, Cardinal Homes Corp., is a large residential real estate developer that currently has over 100 projects in process across the southeast of the United States. Similar to most companies in the land development and ...Jackson Brown, CPA, has two clients, Tarpan Financial, Inc. and Oscar Industries. During his most recent audit of Oscar, he discovered a potential overstatement of inventories because customer returns and scrap were often ...What additional issues must manufacturers address regarding inventory that do not affect other types of businesses?What items related to inventory may need to be estimated?
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