IBIS Technology Corporation Essay Example | Topics and Well Written Essays - 1750 words

IBIS Technology Corporation - Essay Example A qualified opinion may be expressed for one or more of the following reasons: The auditor has concluded that there are material but not pervasive misstatements with respect to the appropriateness and application of accounting policies as well as the adequacy of disclosures in the financial statements The auditor cannot obtain sufficient and appropriate audit evidence on which to base an opinion but concludes that the possible effects could be material but not pervasive, including limitations imposed by management; and circumstances beyond the company’s control. There are uncertainties in relation to whether the company would be able to continue to operate as a going concern During the course of an audit it is a requirement that the auditors take into consideration the appropriateness of management’s use of the going concern assumption in the preparation of the financial statements. The going concern assumption is a fundamental assumption in the preparation of financial statements. Going concern assumes that the business will continue in operation for the foreseeable future with no intention to liquidate. This type of qualified opinion suggests that the possibility exist that the organization may not be operational in the foreseeable future (BPP 2009). It indicates that there are a number of factors that could give rise to this including declining sales and profits or increasing losses. This is also an indication that an organization may not be able to honor its obligations as they fall due if it cannot generate the level of revenues necessary to do cover its costs and leave some in reserves. Additionally, if an organization continues to make losses thereby eroding reserves it may... During the course of an audit, it is a requirement that the auditors take into consideration the appropriateness of management’s use of the going concern assumption in the preparation of the financial statements. The going concern assumption is a fundamental assumption in the preparation of financial statements. Going concern assumes that the business will continue in operation for the foreseeable future with no intention to liquidate. This type of qualified opinion suggests that the possibility exists that the organization may not be operational in the foreseeable future. It indicates that there are a number of factors that could give rise to this including declining sales and profits or increasing losses. This is also an indication that an organization may not be able to honor its obligations as they fall due if it cannot generate the level of revenues necessary to do cover its costs and leave some in reserves. Additionally, if an organization continues to make losses thereb y eroding reserves it may not be able to carry out any major investments or any projects in the form of research and development. In a case where an organization is no longer a going concern, the organization’s noncurrent (fixed) assets are valued at the price they are likely to fetch in a forced sale and their current assets such as stock and debtors will also be discounted to the price they are likely to fetch in a liquidation. This value will be substantially less than the values in the books which assume that the organization is a going concern.

Memo Revision Assignment Example | Topics and Well Written Essays - 250 words

Memo Revision - Assignment Example The Vice President’s office wishes to inform all employees that relocation to new the building will commence on Thursday next week. It will not commence on Monday and Tuesday according to initial plans. This decision has been arrived at following planned visits by managers from the central office on Monday and Tuesday. The Vice President’s office does not anticipate experiencing any form of embarrassments when managers visit to find things in disorder. The office wish to express regret, in advance, for any confusion or inconvenience the change might cause. All affected personnel are, through this memo, urged to extend maximum cooperation during the planned move. All personnel will pack their items in standard size boxes during relocation. Monday or Tuesday marks the date of issuing the standard size boxes subject to confirmation after relevant consultations. The reason for it is to make everything proceed smoothly as planned. Issuance of standard size boxes also avoids reoccurrence of horrible scenes witnessed during the previous relocation. All personnel should be present during issuance of boxes and await official communication. The following is the schedule analyzed by the Human Resource manager after thorough considerations and consultations stipulating the order in which personnel and their packed boxes will move from different floors to the new building: 1:00 PM: First and second-floor personnel 2:00 PM: Third and fourth-floor personnel 3:00 PM: Fifth-floor personnel All personnel should take charge of their items as losses or damages incurred shall be upon the individual. Teamwork is hereby encouraged to have a smooth switch to the new offices. The Vice President’s office wishes all personnel an easy relocation to their new offices.