Audit

completion Status: P U WURDS POWERED BY TINY QUESTION 3 6 points Save Answe? Qiong Imports Limited imports small electric appliances manufactured in China. These are basic appliances such as toasters, mixers, blenders and toaster ovens. The products are inexpensive individually. Nonetheless, Qiong has an elaborate security system on her warehouse where the goods are stored. Last year, sales were $25 million and inventory turned over seven times. The warehouse manager conducts inventory counts each quarter. He is personally involved in the counts and reconciles the counts to the perpetual inventory lists. As part of the count, any damaged or slow selling stock is identified and kept separate. The warehouse manager has the authority to write off up to $10,000 worth of goods each quarter without further approval by Ms. Qiong. If an item is deemed to be unsalable the warehouse manager will auction it off to the highest bidder among warehouse employees rather than see it thrown out. Money collected is used to pay for the annual warehouse Christmas party. Any money left over is donated to a children's charity. a) Identify two factors that increase or decrease inherent risk regarding Qiong Imports Ltd. Be precise as to the inherent risk you are addressing, b) Do you think you will be able to rely on these count procedures for your year-end work? Why or why not? For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). I U S B Arial 14px Paragraph T 40 x? X2 TTT + HES TI 3 DE 6 @ E. EX v - Save All Answers Save and Submit Click Save and Submit to save and submit. Click Save All Answers to save all answers