My observations of the budget prepared for Bruin Sales and Service are that it appears to be
Question:
My observations of the budget prepared for Bruin Sales and Service are that it appears to be well-structured and comprehensive. The budget takes into consideration various factors such as seasonality and payroll cycles, making it realistic and reflective of the actual performance of the business. The inclusion of a Price-Volume Variance report further adds to the depth of the budget analysis and provides valuable insights into the performance of product sales. However, there are some areas that could be improved in the budget. Firstly, the budget only takes into account the current year's performance and does not consider historical data or future projections. This may limit the effectiveness of the budget in predicting and planning for future performance. Additionally, the budget does not account for external factors such as market trends or competitor analysis, which could impact the business's sales and service performance. The negative sales variance for September 2021 could be attributed to a decrease in sales volume compared to the budgeted amount. The Price/Volume variance report informs us that the decrease in sales volume was due to a decrease in the number of units sold, rather than a decrease in price. This could be because of a decrease
Auditing a business risk appraoch
ISBN: 978-0324375589
6th Edition
Authors: larry e. rittenberg, bradley j. schwieger, karla m. johnston