CPA AA Exam With Confidence Using Practice Dumps

New credit policies have been implemented to prevent entering any new sales order that would cause customers’ accounts receivable balance to exceed average sales for any two-month period in the prior twelve month period resulting in controlled collectability. After implementation there were decreased sales and slower order entries as reported from divisional sales management. Division management contends that these are a direct result of the new credit policy constraints.

Sales management’s data and information provides

The production department of Cates Ltd is headed by Brad Hogg, whose deputy is Michael. Brad reports to the managing director, John Silver. There are several other departments namely sales and marketing, treasury, accounting, production, processing, purchasing, HR and internal audit.

Which of the following is the BEST method to make ‘purchase orders’ from production department?

The financial statements are the management's responsibility. They should therefore inform the auditors of any material subsequent events between the date of the auditor’s report and the date the financial statements are issued. If, after the date of the auditor's report but before the financial statements are issued, the auditor becomes aware of a fact that, had it been known to the auditor at the date of the auditor’s report, may have caused the auditor to amend the auditor’s report.

In the above situation, which of the following may NOT be an appropriate action taken by the auditor?