Auditing Essay Example | Topics and Well Written Essays - 1500 words - 7

Auditing - Essay Example 2). Inventories should always be stated at the lower cost and the market prices or the net realizable value. The net realizable value is the amount that the asset can fetch as at the reporting date, less the estimated costs required to complete the transaction. These could include selling costs and overhead costs. The values stated in the inventories of Abbey Plc. in the annual report for the year 2014 should be tested adequately to ensure that they are the correct market values of such inventories. Fixed assets are critical items, which the auditor should ascertain and ensure that values attached to them are their correct fair values to be disclosed to the shareholders (Rittenberg et al. 2011, p. 626). Disclosing the values of the fixed assets in excess of their correct fair values would make the financial statements to be overstated; thus provide shareholders with a wrong financial position of their company. Trade and other receivables should be recognized and carried at the lower cost of their original invoiced value and the recoverable amount. In case the time value of money is material, receivables should be carried at the amortized cost. The company should make provisions in situations where there is some adequate evidence that the amount would not be recovered in full. The balances should be written off when the chances of recovery are assessed as being remote (Henning et al. 2007, p. 313). Adequate audit procedures should be done to ensure that the company did not make too much or too little provision to cater for trade and other receivables, which could not be recovered. Also, before writing off bad debts, all the relevant procedures should be followed since some managers may decide to write off debts, which could not be written off with the objective of hiding the correct amount of revenue collected by the company

Economics Essay Example | Topics and Well Written Essays - 750 words - 23

Economics - Essay Example In 1587, Roanoke Island received another group of settlers, this time led by John White who had with him over a hundred persons to the island(http://en.wikipedia.org).. Much later he went back to England to restock but on coming back the colony was gone! Jamestown would suffer a similar fate. Settler who came looking for gold and with minimal skills of agriculture died of starvation. But there were also several reasons that made it difficult for these towns to thrive. Firstly, the climatic and environmental conditions in these towns were very harsh to the settlers(http://en.wikipedia.org).. The winters were extremely severe in these North American towns. Jamestown was particularly damp and hot, thus making it infested by insects that caused diseases. Secondly, the water found in these settlements were never good for human consumption; and with little knowledge on farming, starvation became inevitable. Thirdly, the Powhatan Indians looked at these settlers with suspicion. They knew that these new settlers would want more land, and thus used war to intimidate their expansion and tranquility. In 1590 settlers disappeared from Roanoke Island in mysterious circumstances, but it is widely thought they must have been attacked by the Croato an, a native tribe that lived nearby. The colony of Virginia existed during the 16 century for a moment before dwindling and later gaining resurgence all through to the American Revolution(http://en.wikipedia.org).. While it initially struggled to get its footage economically, owing to constant pandemics, and wars with natives, this colony would have a complete turnaround after John Rolfe introduced tobacco as a means of economic mainstay after the unsuccessful prospecting of gold and other precious metals. The New England colonies on the other hand included Massachusetts, Colony of Rhodes Island and Providence Plantation, Province of New Hampshire, and