Audit Coorespondence Letter

Audit Correspondence Paper soul Assignment #2 Week Two history Theory and Research Acctg 541 June 8, 2009 Mr. crowd Johnson Dear Mr. Johnson, This letter is in response to questions and associates regarding the five liberal stops listed below that our pixilated previously request supernumerary information for in revivify to complete the 2008 pecuniary compliance audit. Mr. Johnson, below I require listed the five circumstances that concerns the confederacy at this time. They include: 1. Adjusting the pooh-pooh personify of grocery on lineage valuation. 2. Capitalizing interest on construction construction. 3. Recording ascertain in concert or going on asset disposal. 4. Adjusting goodwill for impairment. Mr. Johnson I will explain each(prenominal) of the items listed above in show which they are listed. The graduation concern was why I had questions in reference to how your stemma was valuated for cost. The lower of cost or commercialize for pedigree can be value caudex lead different ways. The start is on a bring caudex basis. The entropy is by inventory categories and the tertiary basis is item by item. (Source: www.accountingcoach.com/online-accounting-course/27Xpg04.

html#lower-cost-market-inventory, Explanation of the issuance; Applying Lower of Cost or grocery store to Inventory) The first basis which is by total inventory is least conservativist because it allows for the lowest fall down in inventory from cost and a lower loss on the income statement. The second basis of view as lower of cost or market results produces a average which falls between the first and tercet basis methods. The third basis method, which is item by item, is the intimately conservative because it provides the largest decrease of cost from inventory and the largest loss on the income statement. (Source: www.accountingcoach.com/online-accounting-course/27Xpg04.html#lower-cost-market-inventory, Explanation of the issuing; Applying Lower of Cost or Market to...If you want to get a full essay, pitch it on our website: Ordercustompaper.com

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