Adelaide Valley Wines (AVW) is a large wine producer located in South Australia. AVW produces high quality
Question:
Adelaide Valley Wines (AVW) is a large wine producer located in South Australia. AVW produces high quality wines that have won numerous awards. It has recently changed its production process to introduce a new improved wine bottle cap that allows the wine to continue to develop in the bottle, and overcomes previous concerns that it was having with "corking", whereby air was getting into its wines through problems with the corks and causing some of its premium bottles of red wine to be undrinkable. As a result, it has started to export its premium red wine into the US export market, with prices set in US dollars. The following table summarises data extracted from the financial reports of AVW for the 2022 and 2021 financial years:
REQUIRED: For accounts receivable and inventory explain why each account has been identified as having high risk and identify the key financial statement assertion at risk for each account.
Management Accounting
ISBN: 9780730369387
4th Edition
Authors: Leslie G. Eldenburg, Albie Brooks, Judy Oliver, Gillian Vesty, Rodney Dormer, Vijaya Murthy, Nick Pawsey