Price for all 3 parts please!!
Mock Audit
Ribio Inc. is a private company in the retail sales operations industry. Ribio sells high-end business suits at brick and mortar locations in 3 major U.S. cities and also brings in ⅓ of its revenue through online sales channels. This is Ribio’s second year in the e-commerce industry. You are part of the audit team that will be planning, testing, responding to evidence, and helping to form an opinion on Ribio’s annual audit. There are 3 parts to this project:
Part I: Planning
Auditors must develop industry and client specific knowledge. Identify the inherent risks of retail sales: brick & mortar vs. e-commerce. Additionally, identify two key accounting cycles relevant to the retail sales industry.
Deliverable: Review the consolidated financial statements. Identify and outline three Key Performance Indicators within the retail sales industry. Evaluate and compare Ribio’s financial performance to industry standards. This should be between 2-3 pages.
Part II: Performance & Response
The audit team has used data analytics tools to review the sales transaction data of the retail locations. One location in particular, Seattle, has presented irregularities related to a higher than average amount of refunds compared to the two other locations. You have been asked to review a sample set of data Download sample set of data sample set of data related to Register 1 at the Seattle location. Tips for your review:
- The specific refund line items are related to the miscellaneous category and, per policy, can result in cash refunds if under $50. Amounts over $50 must be refunded to a credit card.
- Custom amounts are an option related to adding the initials of the purchasing customer to the inside of their garments. Occasionally, this service is discounted at its usual rate of $20.00.
- Upon conversations with the general manager at the Seattle location, the auditing team learns the current store policy requires a manager to approve refunds over $100.00.
- The expected misstatement for the audit has been set at 10% of total revenue.
Deliverable: Review the data set file Download data set file to identify any unusual patterns or outliers. Prepare a 2-3 page memo to the audit senior regarding your research, findings, any internal control weaknesses, and whether you deem the findings to be material to the audit. In addition, state any further testing procedures that could aid in collecting additional audit evidence. Be sure to use complete sentences, be clear and concise in how you write, and have a clear introduction and conclusion.
Part III: Reporting
Deliverable: Based on your findings and assessment of material misstatement for the audit, formulate an opinion on the presented financial statements. Prepare a 1-2 page draft outline of the audit opinion report and be sure to follow the appropriate guidelines for the appropriate entity type.
(See below for financial statement account information.)
Consolidated Profit and Loss Statement for Ribio Inc. for Current Year 202y202y202xBrick & Mortar Sales$4,238,650.00 $3,876,230.00E-commerce Sales$2,096,222.00$1,655,302.00Total Revenue $6,334,872.00$5,531,532.00Refunds$(458,300.00)$(202,045.00)Cost of Goods Sold$(3,865,000.00)$(3,026,032.00)General Overhead Expenses $(1,789,220.00)$(2,238,240.00)Net Income$222,352.00$65,215.00
Relevant Balance Sheet Accounts for Ribio Inc. Through 12/31/202yChecking Account$654,309.00Money Market$1,238,544.00Inventory$1,065,350.00Fixed Assets: Leasehold Improvements$855,330.00 Furniture & Equipment$632,575.00Accounts Receivable$83,200.00Accounts Payable$432,358.00Loans Payable$1,225,000.00 Sales Tax Payable$10,385.00
(Equity accounts removed)
Your consolidated paper should be 5-8 pages in length and conform to APA guidelines, Include at least 5 credible references
