Auditing Management Letter

March 27 , 2009Mr . John SmithChief Financial OfficerSouthwest Appliances IncDear Mr . SmithI have audited the financial statements of Southwest Appliances for the fiscal year ending December 31 , 2XX1 and have issued my reportBelow I summarize issues of sufficient importance to faithfulness your attention . I have discussed my suggestations pertaining to these issues with the appropriate , responsible violence play . Many of the suggestions are being implementedController s AuthorityThe software gives also more power to the controller , including the ability to write mangle integral accounts . I recommend adding another step to the unconscious process where big(a) debt write offs are verified by a trey impartial partyReturnsReturns are not tracked . Therefore , they may not be added back to caudex . Equally , customer s whitethorn be billed for something they do not owe .

I recommend that Southwest Appliances begin tracking shows by attaching a make it number to each return and recording this in a sales return journalCustomer InformationThe customer information of return customers is not checked . If a customer moves , this can ensnare in an incorrect address . I recommend that a sales clerk compare the current address to the safe in the system when each sale is originatedComputer Perpetual InventoryToo a good deal reliance is placed on figurer perpetual inventory . A power outage or a software job can skew the computer s determine or duck access to these values ! . I recommend keeping a backup perpetual inventory , any on or on another computer in a objective location...If you want to get a full-of-the-moon essay, order it on our website: OrderCustomPaper.com

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