Question
Current Attempt in Progress The following data was taken from the production and accounting records for Casuccio Manufacturing, Inc. Unaudited 2023 Audited 2022 Audited 2021
Current Attempt in Progress
The following data was taken from the production and accounting records for Casuccio Manufacturing, Inc.
Unaudited 2023 | Audited 2022 | Audited 2021 | ||||
Operating Data | ||||||
Capacity in units | 450,000 | 450,000 | 450,000 | |||
Production in units | 450,000 | 400,000 | 300,000 | |||
Inventory in units | 32,000 | 28,000 | 21,000 | |||
Financial Data ($000) | ||||||
Total revenues | $35,200 | $27,500 | $21,200 | |||
Total assets | $23,000 | $19,500 | $15,700 | |||
Accounts receivable, net | $5,900 | $4,300 | $3,900 | |||
Bad debt expense | $175 | $135 | $105 | |||
Accounts receivable written off | $165 | $125 |
2023 2022 2021
Sales to total assets 1.53 1.41 1.35
Sales to production 0.08 0.07 0.07
Revenue per unit sold 1.10 0.98 1.01
Accounts receivable growth to sale growth 1.33 0.35
Uncollectible accounts expenses to net credit sales 0.0050 0.0049 0.0050
Uncollectible accounts expense to accounts receivable written off 1.06 1.08 1.05
Accounts receivable turnover in days 61.18 57.07 67.15
1. Describe the implications of the resulting ratios for the auditors audit strategy for the year 2023.
2. What specific assertions are likely to be misstated?
3. How should the auditor response in terms of potential audit tests?
Note: Completed calculated
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