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The Process of Manufacturing and Distributing Medical Equipments

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Added on  2020-04-01

The Process of Manufacturing and Distributing Medical Equipments

   Added on 2020-04-01

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Running head: AUDITINGAuditingName of the StudentName of the UniversityAuthor’s Note
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1AUDITINGExecutive SummaryGPSA is a business organization established in 1992 and it deals with the research anddevelopment of technologies regarding medical equipment; it also involves in the process ofmanufacturing and distributing medical equipments and it invests in the property market. GPSAapproached to the long-term auditor, Miller Yates Howarth for the analysis of control system ofthe company along with the analysis of the major financial rations of the company so that themajor business risks can be determined.
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2AUDITINGTable of ContentsAnswer to Question 1A...................................................................................................................3Answer to Question 1B....................................................................................................................5Answer to Question 2A...................................................................................................................7Answer to Question 2B....................................................................................................................9References......................................................................................................................................11
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3AUDITINGAnswer to Question 1AThe evaluation of different accounts is shown below:Accounts Receivable:Accounts receivable refer to the amount that the business organizationsexpect to receive from their debtors as a result of credit sales.Evaluation: From the case study, it has been seen that the trade receivable official nhas all therequired steps related to accounts receivable. For example, in case of medical instrument returnby the consumer, the respected official drawn credit notes in favor of the customer afterinvestigating the reasons behind the return and the documentation process. Moreover, officialssent the related journal postings along with receipts to the bank for the preparation of depositslip. Thus, it can be seen that the risk is high.Audit Risk: The trade relievable has undertaken all the necessary steps related to receivables.The risk involved in this case is that the trade receivable officials might inflate the receivables inorder to show lesser amount of receivables (Arens, Elder & Mark, 2012).Audit Steps to Reduce Risk: In order to reduce the accounts receivable risk of GPSA, theofficials must separate out different actions related to the accounts receivable among the staffs.Investment: Investment refers to a particular amount of money that can be converted into cashwithin a period of three to twelve months. Thus, it is considered as cash equivalent.Evaluation: Business investment use to influence the whole accounting systems of thecompanies and this, it needs to be differently treated. Hence, risk related to investments ismedium.
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