Carewell Connections

Date:March 9, 20X0 To: take stock Manager From: Ryan OLeary RE: Audit Plan C atomic number 18well Connections (Canada) Ltd. (CCC) Information has recently come to my attending from a former CCC employee that might affect the scrutinise plan regarding CCC. As planning for this audit is scheduled to receive get through next week, I would like to earn it to your attention. We have well-educated from the Vancouver office that CCC might be having hard cash bleed issues as there have been any(prenominal) employees laid off and severance packages were pay. A nonher piece of culture learned was that at least one of the severance packages paid was paid by Worldwide Connections Inc. Effect on Audit Plan Audit guess of CCC should be reassessed in regard to the cash bunk problems as there could be a going stir issue or perchance reporting discontinued opeproportionns if this employee and others laid off were part of a specific division. excess s ubstantive audit procedures should be carried push through to ensure inter companion minutes are being dealt with properly as the severance payments were paid by Worldwide, we must ensure that these are recorded correctly in the books. A walkthrough should be carried pop out regarding the payroll wheel around to make sure on the whole amounts are correctly recorded. pecuniary proportions Specific pecuniary ratios that should be looked at during the audit that would be indicative of a cash flow concern include, except are not particular(a) to: Quick Ratio Current Ratio Debt reporting Ratio Receivables Turnover Ratio These ratios should help determine whether or not the entity has becoming cash or liquid assets to meet their obligations. Should the company be having cash flow issues, additional disclosure in the financial rumors may be required. This would be the case if a ratio was in violation of a banking agreement or debt cartel and the debt coul d then be called at any time, financial stat! ement users would need to be aware of this. Ethical Issues The Vancouver office...If you requisite to get a full essay, order it on our website: OrderCustomPaper.com

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