ANOTE 3—RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS The Company has restated its previously issued financial statements for 7/31/17, primarily to reflect the correction of error in the company’s credit card liabilities and properly record prepaid insurance. GAAP requires that company’s liabilities include purchases attributable to the current period regardless of the actual payment period. GAAP also requires that insurance be allocated to the applicable coverage periods. The company inadvertently failed record credit card purchases and did not record a prepayment of insurance during the year ended 7/31/17. As a result of the errors, the Company has adopted revised policies and procedures to review subsequent payments to properly record liabilities and review prepayments to be sure expenses are …show more content…
The Company’s restated financial statements for 7/31/17 reflecting each of these changes. The effect of correction of the errors and change in method of accounting on results of operations for the above mentioned financial statements is as follows for the year ended 7/31/17: 2017 Twelve Months Net loss: As previously reported (tax-basis) $ (21,386) As restated (GAAP) $ (32,730) The effect of correction of the error and change in accounting method on retained earnings and significant asset and liability accounts is as follows: 7/31/17 Retained earnings: As previously reported (tax basis) $ 287,015 As restated $ 394,492 Current assets – prepaid Insurance As previously reported $ - As restated – prepaid insurance $ 15,809 Property and
To satisfy this inequality (1) simultaneously, we have to find the value of C1,C2 and ,n0 using the following inequality
Overall, the work performed to test the relevant financial statement assertions and the evidence gathered has led our audit team to conclude that the confirmation issues encountered may signify that a potential for material misstatement exists. For example, the existence of a line of credit in one of the Financial institutions indicates that we need to perform further investigation to assess the reliability of the findings.
Departmentalization base is the big plan by which jobs are grouped into units.in facts few organization show only one departmentalization base. The most common bases are function, product, location, and customer. The decision to use many bases is usually based on the specific needs of the corporation and on the strong
The audience for writing project one: summary and response will be my classmates and my instructor, Avon Waters. I am writing this for English 111 – an online Ivy Tech college course. This is the first writing project of four for semester one. The assignment is to select a core reading resource from the group listed and perform a summary and response style paper, using proper APA formatting and introducing the concept of a situation analysis. The core reading piece I have selected is one that personally interested me, as it deals heavily with history and facts versus opinions and controversy. This will be in APA format, as with every other paper written in this course. My goal with this paper is to offer additional insight into the piece I
My biggest improvement in this English 111 class was my writing. Writing tasks that were assigned greatly strengthened my overall performance throughout the course, preparing me for the future classes. The environment made me feel at ease, helping me evolve as a student, and as a person. The environment made me feel at ease, preparing me for future classes. Another large achievement of mine that I displayed in the class, was my ability to talk comfortably with the other students. The variety of group activities we did allowed me to openly speak my opinion, leading to a better overall performance with my work and papers. The English 111 class enabled me to have better participation in and out of class and allowed
The chosen signature assessment, Tutoring Project, is an assignment from EDMU 520, Literacy and Language in K-8 Classrooms I. This signature assessment expresses the Program Learning Outcome (PLO) number 2, PLO number 3, and PLO number 4. PLO number 2 is Culture, which is describing differences in the cultures of individuals served. PLO number 3 is Instruction, which is being able to implement evidence based and multifaceted methodologies and strategies for teaching and engaging students with exceptionalities. PLO number 4 is Assessment, this is how to utilize achievement tests to assess students in a comprehensive manner.
significant accounting policies, where the basic operations and financial reporting techniques are explained in accordance with the
Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2008). Financial accounting (6th ed.). Hoboken, NJ: Wiley.
Responsibility of express opinion of these financial controls and statements within its internal control of such reports. This firm conducted the audit in accordance with PCAOB standards of the United States, which require the plan and performance of an audit for reasonable assurance that those financial statements are both free of material misstatement and that effective controls are in place and maintained to eliminate those misstatements. Our audit of financial statements included examination and testing of internal controls, inventory, payroll, deposits and withdrawals, along with receipts and payments. These evaluation gave the audit team an understanding of the internal procedures and controls when dealing with financial controls and statements, gave the audit team a reasonable basis for our
...companies experienced in 2005 lower net profits than they did in the previous year of 2004, and they both also showed an increase in operating expenses, resulting in lower net profits. They both showed higher operating expenses in 2005 compared to 2004 and should modify or adjust their operations to help reduce expenses so that their profit margins will begin to increase.
Misstatements in the financial statements can occur from fraud or error. The distinctive factor between fraud and error is whether the fundamental action that results in the misstatement of the financial statements is intentional or unintentional.
Previously, organisations were using historical cost accounting ,which indicates the value of assets and liabilities at the date or acquisition. But as we discussed before it was not accurate data or one can’t find accurate financial statements on the basis of historical cost. After May 12, 2011 IFRS introduce a fair value measurement (IFRS 13). Which was indicate fair value. Because of this organisation can get accurate numbers in their financial statement.
Some companies are not capable of completing the necessary reconciliations in time to use them as a preventative control. They should risk-rate all accounts and reconcile high- and medium-risk accounts in time to incorporate general ledger adjustments into the company’s earnings release. Reconciling all accounts that could contain a significant or material misstatement and posting the necessary adjustments to the general ledger will reduce the risk of material misstatement. Because account reconciliations are so important under Sarbanes-Oxley, adopting a continuous improvement process with a goal of reconciling all accounts before the post-closing adjustment review process will enhance the internal controls of the organization.
Consistency – users of the financial statements must be able to compare the performance of the company through the years. It is really important that the classification and presentation of the items in the financial statement is retained from one period to the next, except there is a change un circumstances or a requirement
These different circumstances have led to the use of a variety of definitions of the elements of financial statements; that is, for example, assets, liabilities, equity, income and expenses. They have also resulted in the use of different criteria for the recognition of items in the financial statements and in a preference for different bases of measurement. The scope of the financial statements and the disclosures made in them have also been affected.