Audit Coorespondence Letter

Audit Correspondence Paper Individual Assignment #2 Week Two invoice Theory and Research Acctg 541 June 8, 2009 Mr. throng Johnson Dear Mr. Johnson, This letter is in response to questions and concerns regarding the five affluent stops listed below that our firm previously request redundant information for in fix to complete the 2008 pecuniary accordance audit. Mr. Johnson, below I have listed the five power points that concerns the confederacy at this time. They include: 1. Adjusting the lower speak to of grocery on farm animal valuation. 2. Capitalizing interest on building construction. 3. Recording get unitedly or harm on asset disposal. 4. Adjusting goodwill for impairment. Mr. Johnson I will explain each of the positions listed above in direct which they are listed. The first concern was why I had questions in reference to how your ste mma was valuated for cost. The lower of cost or market place for pedigree can be value inscription ternion different ways. The first is on a total inventory 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 topic; Applying Lower of greet or grocery store to Inventory) The first basis which is by total inventory is least conservative because it allows for the lowest slack in inventory from cost and a lower loss on the income statement. The second basis of apply lower of cost or market resu! lts produces a median which falls amongst the first and third 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 topic; Applying Lower of hail or Market to...If you want to get a rich essay, order it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay