Fraud And Errors of the Companys Financial Statement Case Study

Fraud And Errors of the Companys Financial Statement - Case Study Example Finally, the detection risk which analyses the risk that auditors’ procedures would fail to detect a material error (Hall, 2013, pp. 691). Accsys Technology PLC is a chemical technology group quoted on the Alternative Investment Market (AIM) on the UK stock exchange. It develops and commercialises a range of transformational technologies that are based on the acetylating of wooden elements, such as particles, wood chips and fibres, and solid use for us as a leading, environmentally sustainable, construction materials. Analysis of the company’s most recent financial statements indicates some anomalies that need further investigations. These areas include revenue, gross profits, and remuneration whose balances show a large positive difference in 2014 as compared to 2013. Material misstatements in the financial statements are often as a result of an overstatement or understatement of revenues. It is crucial for auditors to presume that there are risks in revenue recognition. From the quantitative analysis (Appendix 1) it is clear that the company’s total revenue had materially increased by 78% in 2014 as compared to that reported in the year 2013. According to the financial director, the increase had been attributed to a 61% increase in Acoya revenue because of an increase in sales to Medite. This increase in sales to Medite is because the company had finished its built up stock which it was still utilizing earlier. There was also an increase in license income from Solvay and other revenues such as the sale of acetic acid. According to the financial statements, the increase in total revenue was as a result of an increase in revenues in the UK and Ireland by 183.70% (Appendix 2). This was further explained by an increase in revenue generated fro m one customer who represented 43% of this revenue and exceeded 10% of the group’s revenue. This area creates an audit risk because in 2013 the revenue generated from a customer did not exceed 10% of the Group’s revenue.  Ã‚  

Discussion topic Essay Example | Topics and Well Written Essays - 250 words

Discussion topic - Essay Example Thus, it would be justified to say that Casey Martin should have been allowed to use the cart in the PGA tours but justice was sacrificed by denying Casey the freedom to use his cart at the expense of the golf fraternity that would have been affected by the golfers’ action. Indeed, the decision that was taken could also be defended on the basis that he was a physically challenged golfer and allowing him to use a cart could affect the outlook of the game. Thus, one may argue that justice may have been used accurately granted because the decision was reliant upon matching equal entities and equal people. All these give the impression that theory of distributive justice perpetuates impartial justice. One can explain justice in theoretical aspects by viewing it behind a curtain of ignorance, which means that our personalities, class, moral characters, luxuries and talents are not exposed. It is agreeable that justice was purposed at giving people what they deserve. However, as discussed, it does not give everyone what is