Need 3 audit issues and criteria and recommendations for this issues in this eco pal case ch13.

194 of 438 ) Aa Caleb closely observed the measurement process for the vats of raw materials and was able to verify the readings and measures that the engineers used in their volume calculations. The raw material inventory consists of large vats of processed fibre, a goopy substance that is mixed with binding agent solutions, left to cure for several days, and then aerated and sprayed into moulds that shape the material into coffee cups, cutlery, and so on. The aerating spray process is EcoPak's own patented technology. Based on review of Nina's preliminary inventory balances, he notes that while the volume of the raw material is very large, its dollar value is actually considerably less than materiality. So, he decides he has done enough on that balance. The spare moulds, however, reflect a balance that is several times materiality, so he makes sure he has a lot of reliable evidence about their quantities and condition. He notes a number of moulds at the back of the storage area that are very dusty and is told by the production manager that they are for a product that EcoPak never gets orders for any more. "But that item was once used by one of our best customers, so we should keep them on hand in case they ever decide to go back to that type of package." Caleb makes a note to discuss the valuation of this part of the spare moulds inventory with Donna. At about 9 p.m., it looks like Caleb is close to being finished (and in good time to ring in the New Year with his friends!). However, just as he gets to the very back of the plant for a look at the last area, he becomes aware of a lot of vibration and noise from the back production line-it is running a job! But Nina told him that production would be shut down. Mike confirms to Caleb that it was not possible to keep the lines completely shut down-an urgent order that needed to be completed by January 3 came in the night before, and they had to get it going right away. Mike comments, "I guess this kind of messed up Nina's nice neat plan for the count, and I am sorry about that. But business comes first. Kam's been working on this account for two years, and now they are finally giving us a chance! If we meet this deadline, this could turn into a huge new account that will increase our sales by a good 30% and allow us to expand our new cutlery production line, which is currently underutilized. That will make us the industry leader in biodegradable disposable cutlery. This could be the big breakthrough for EcoPak!" When Nina finds out, she's annoyed, but quickly agrees that the order is too important to the company's success to turn "Still Mike" she says "you could have told me sooner-you know I need