Case Study: Resolving Accounting Errors at XYZ Enterprises XYZ Enterprises, a modium-sized manufacturing company, recently discoverod a series of accounting errors that have raised concerns about the accuracy of its financial statements and reports. As a financial consultant, your task is to assess the situation, identify the root causes of these errors, and propose solutions to rectify them. Background: XYZ Enterprises' accounting department has identifled several signiflcant accounting errors, including misclassifications, omissions, and computational mistakes. These errors have impacted various aspects of the company's financial reporting, including the balance sheet, income statement, and cash fiow statement. Key Accounting Errors: I. Revenue Recognition: A substantial portion of revenue from a major cllent was recorded in the wrong accounting period, leading to inaccuracies in revenue recognition and profitability for that period. 2. Inventory Valuation: Errors in inventory valuation methods led to the overstatement of the company's inventory valuc, affocting the accuracy of the balanoe sheet and cost of goods scid calculations. 3. Accrued Llabllities: Certain accrued liabilities, such as outstanding vendor invoices, were omitted from the financlal records, leading to an understatement of llabllities and overstatement of net income. 4. Depreciation Calculation: Errors in deprociation calculations for fixcd assets resulted in inaccuracies in the balance sheet and understatement of expenses in the income statement. 5. Bank Reconcillation: Bank reconclilation statements were not consistently prepared. leading to discrapancies in cash flow reporting and inaccurate cash balances. Questions: 1. Error Identification and Analysis; Based on the case stucy, anaiyze the Implications of the identified accounting errors on XYZ Enterprises financial reporting and decisionmaking. Discuss how each error affects the company's balance sheet, incorne statement, and cash flow statement, and explain the potential consequences of these inaccuracies. 2. Error Resolution and Prevention: Propose specific measures and solutions to rectify the accounting errors identified at XYZ Enterprises. Additionally, outline strategies and internal controls that the company can implement to prowent similar errors in the future. Explain the benefits of each proposed solution for financial reporting accuracy and decision-making