Warranty liability is estimated using historical claim rates…
Warranty liability is estimated using historical claim rates. After year-end, claim activity increases materially. Management argues the increase is unrelated to year-end conditions.Under AS 2501, which approach is most directly relevant?
Read DetailsThe engagement team observes the following year-over-year ch…
The engagement team observes the following year-over-year changes:* DSO increased 18 days* DIO increased 22 days* Cash flow from operations declined despite revenue growth* DPO increased significantly* The company entered into short-term borrowings near year-endManagement describes these changes as “temporary growth-related investment.”Which conclusion is most appropriate from an audit risk perspective?
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