Module 7 — audit and assurance

Caitlyn Pierce and Steve River are the two founding audit partners for Higgins and River LLP (H&R). In June 20X6, they accepted a new audit client, Baby’s Edge (BE), a private enterprise owned by two sisters, Kathleen and Christine.

BE’s mission is to provide eco-friendly and sustainable baby products to parents throughout eastern Canada. BE works with local and international manufacturers to buy environmentally friendly products at the best prices possible. BE’s owners pride themselves on their ability to provide “affordable eco-freshness.” BE’s head office is in Halifax, Nova Scotia; however, it has small stores across the Maritimes. The company also distributes some of its clothing lines to specialty stores with similar missions and values in Toronto. BE operates from rented premises. BE has one warehouse, in Halifax, from which all of its goods are shipped. 

BE has operated successfully for several years, but over the past nine months it has had a significant reduction in profit. This is causing concern for Kathleen and Christine.

In May 20X6, BE’s purchasing manager resigned, leaving the operations at the warehouse very disorganized. Remaining staff members have been unable to keep up with product sourcing and store distribution. Recruitment for a permanent replacement is underway; in the meantime, the company is using other staff members to perform the manager’s duties. To keep the disruption minimal, Christine and Kathleen authorized the store managers to make product purchases directly to the store, rather than through head office. Kathleen is concerned that the inventory on hand may be piling up, as there is little oversight.

BE has a December 31 year end. It is October 13, 20X6, and you are an audit manager with H&R assigned to work on the year-end audit for BE. Steve will be the lead audit partner for the audit engagement. Steve met with Kathleen in August 20X6 to discuss the year-end audit. (Notes from the meeting are in Appendix 1.) At this meeting, Kathleen also provided BE’s financial performance for the nine months ended September 30, 20X6, along with the prior year audited financial statements (Appendix 4).

Kathleen and Christine believe BE’s control environment is strong. They have been working to ramp up procurement and warehouse controls as suggested by their predecessor auditors. Kathleen has provided a description of the purchases system and the control activities that have been implemented in the purchasing and shipping department (Appendix 2).

On September 30, 20X6, one of the new staff accountants from H&R attended BE’s inventory count. This work is documented in Appendix 3.  

Punctual Essays
Calculate your paper price
Pages (550 words)
Approximate price: -

Why Work with Us

Top Quality and Well-Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

Professional and Experienced Academic Writers

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.

Free Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.

Prompt Delivery and 100% Money-Back-Guarantee

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.

24/7 Customer Support

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.

Essays

Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.

Admissions

Admission Essays & Business Writing Help

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.

Reviews

Editing Support

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.

Reviews

Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.