Although nonquantitative factors may be relevant to a company's financial evaluation in general terms, the details of
Question:
Although nonquantitative factors may be relevant to a company's financial evaluation in general terms, the details of this specific situation are not relevant to the firm's financial condition or performance. The purchasing manager's behavior should be expected to decrease Southern's riskiness. His belief that the use of trusted suppliers will prevent or eliminate any inventory or supply delays or outages is, no doubt, correct. The purchasing manager's behavior should be expected to increase Southern's riskiness by increasing its exposure to potential supply shortages or mistimed deliveries. How would you expect this situation to affect the assessment of Southern's financial condition and performance?
Auditing and Assurance services an integrated approach
ISBN: 978-0132575959
14th Edition
Authors: Alvin a. arens, Randal j. elder, Mark s. Beasley