Assignment First

论文代写价格:公司夸大销售账户余额的风险

为了达到预期的利润目标,给定公司的管理层会有较高的风险,表现出更多的收入。所以有可能公司的损益表上的销售额会高于实际情况。在这种情况下,公司将显示虚假销售。为了掩盖不正当行为,公司可以制作虚假票据,以凭证的形式证明销售确实发生。在另一种情况下,公司会夸大向一方的销售额。例如,20000美元的实际销售额作为30000美元的销售额记录在账簿上。在这种情况下,受影响的是销售帐户。这将导致损益表中利润的高估。公司的损益表上的余额会比实际情况高,这将是财务报告中的重大错报。此外,资产负债表上显示的利润数额也会被夸大。此外,由于虚构的信贷销售被显示,资产负债表上债务人的数量也会比实际数量被夸大。

论文代写价格:公司夸大销售账户余额的风险

同时也考虑到该公司的买方的信用价值没有得到妥善处理。因此,公司需要在损益表中增加坏账拨备。这是一项费用,它会减少损益表上显示的利润数额。但该公司对未来利润的高度乐观估计表明,由于信贷政策失误,该公司似乎忽视了高额坏账的风险。公司损益表中坏账的错报和坏账准备风险较高。在损益表中也存在其他费用被夸大以虚增利润的中等风险。给定的公司似乎过于雄心勃勃,无法理解其商业环境的现实。

由于给定的公司在零售业务上是新手,它将不得不提供更低的价格来吸引顾客。因此,该公司在估计未来销售额时,本应更多地依靠保守主义原则。在这种情况下,公司夸大销售账户余额的风险很高。

论文代写价格:公司夸大销售账户余额的风险

The following is the assessment of inherent risks in case of Soundworld Ltd:
There are high risks of the management of the given company showing more revenues in order to meet the projections of profits done by it. So there are chances that the company would show a higher amount of sales in the profit and loss account than that actually happen . In this case the company would show fictitious sales. In order to order to conceal the irregularity the company can make fictitious bills to show as vouchers confirming that the sales have actually happened. In other case, the company would overstate the amount of sale made to a party. For example an actual sale of $20000 is recorded in the books of accounts as a sale of $ 30000. In this case it is the sale account that would be affected. This would lead to overstatement of profit in the profit and loss account. The balance of the profit and loss account of the company would be higher than it should be and this would be a case of material misstatement in the financial report. Further the amount of profit shown in the balance sheet would also be overstated. Moreover as fictitious credit sales are shown the amount of debtors in the balance sheet would also be overstated than the actual amount .

论文代写价格:公司夸大销售账户余额的风险

It is also given that credit worthiness of the buyers of the company has not been done properly. The company therefore needs to make more provisions for bad debts in the profit and loss account. This is an expense which would decrease the amount of profit as shown by the profit and loss account . But the company seems to have ignored the risk of high bad debts due to its faulty credit policy as indicated by its highly optimistic estimation of future profits. There is high risk of misstatement of bad debts and provision for bad debts in the profit and loss account of the company. There is also medium risk of other expenses being overstated in the profit and loss account in order to inflate the profits. The given company seems to be overambitious and not able to understand the realities of its business environment.
As the given firm is new in retail business it would have to offer lower prices to attract customers. The company should have therefore relied more on the principle of conservatism while making estimates of future sales. In this case there is a high risk of company overstating balance of its sales account.