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Posted: February 3rd, 2022
ACC 616 Researching Audit Issues
ACC 616 Researching Audit Issues
Please review the following case and complete the assignment:
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Springer & Jones, CPAs, LLP, is currently auditing Worldwide Electronics Inc., which manufactures electronic equipment utilized around the world. The audit client purchases in bulk large quantities of various inventories of stock material to produce various specialized parts used in electronic equipment. The client claims that there might be some obsolete stock on hand from these bulk purchases, but states that to determine the complete degree of obsolescence is difficult due to the highly specialized nature of the product line which may not lead to renewed orders until future periods.
Springer & Jones, decided to first search the auditing standards to determine its responsibility, not being inventory experts, as to the extent of obsolescence. If the auditors conclude they do have a responsibility, they determined to utilize data analytics software to investigate the extent of obsolete inventory.
Search the auditing standards to determine the requirements, if any, for Springer & Jones to evaluate the extent of obsolescence.
Accountants will sometimes use judgement in the determination of obsolete inventory or other estimates. Discuss an ethical situation in which an accountant might manipulate an estimate for a favorable result for the company.
While APA style is not required for the body of this assignment, any documentation of sources should be presented using APA formatting guidelines.
This assignment uses a rubric. Please review the rubric prior to beginning the assignment.
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