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eFishie eFishie
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6 years ago
As part of a loan agreement that it is thinking of obtaining, Always Quick Manufacturing Limited has decided that it will use accounts receivable and inventory as security for working capital funds.
The bank has indicated that in addition to an annual financial statement audit, that it would require quarterly assurance on the accounts receivable and inventory amounts. The type of assurance required has not been stated.
The bank has told Jose, the owner of the company, that he would need to provide a detailed inventory list and an aged accounts receivable trial balance on the fifteenth of each month for the information as at the preceding month end. Jose would like to know what his alternatives are.

Required:
Your partner is going to meet with Jose next week, and would like you to prepare a memo to file that will be used as part of the meeting. The memo should include a list of alternative types of engagements that could be used to provide assurance on the accounts receivable and inventory balances.
Textbook 
Auditing: The Art and Science of Assurance Engagements, Canadian Edition

Auditing: The Art and Science of Assurance Engagements, Canadian Edition


Edition: 12th
Authors:
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victroxvictrox
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6 years ago
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eFishie Author
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6 years ago
I appreciate what you did here, answered it right Smiling Face with Open Mouth
Ivansitospeed@g
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Yesterday
Smart ... Thanks!
larrybrads
wrote...

2 hours ago
Helped a lot
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