Would any of these situations decrease or increase the risk of material misstaement ?

Sigchi4life
Category:
Accounting
Price: $30 USD

Question description

Client: manufacturers personal computer

During the planning phase of the audit you learned the following:

1.  the company has been a leader in the market, but over the last two years its market share has been declining.  during the current year it cut back from three shifts to two shifts because of the decreased demand.

2.  Consumer magazines indicate that the company's basic model doesn not have the new technological features that buyers are looking for.

3. Standard has continued to fill customer orders and ship merchandise at a pace consistent with two shifts a day.  Inventory quantities have decreased, and the company has eliminated the backlog of orders that existed in prior years.

Tutor Answer

(Top Tutor) Daniel C.
(997)
School: UCLA
PREMIUM TUTOR
Studypool has helped 1,244,100 students
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1830 tutors are online

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors