Honey Crunch Limited started business in 2018. It is now 2021 and the Board of Directors of Honey Crunch Limited hired Aegis Solutions to recommend how each of the following types of accounting changes or errors should be dealt with. As an audit assistant for Aegis, provide Honey Crunch with this information. The company changed its method of inventory pricing from FIFO to Average Cost in 2020. The change was made from 2020 onwards. Just to see the impact, the company also did an analysis of the change for the previous years For each issue write a note for the audit file (3-5 sentences) identify the type of accounting change or error, the appropriate accounting treatment, include amounts where applicable and how net income would be impacted if the issue needs correcting.
Honey Crunch Limited started business in 2018. It is now 2021 and the Board of
Directors of Honey Crunch Limited hired Aegis Solutions to recommend how
each of the following types of accounting changes or errors should be dealt with.
As an audit assistant for Aegis, provide Honey Crunch with this information.
The company changed its method of inventory pricing from FIFO to
Average Cost in 2020. The change was made from 2020 onwards. Just to
see the impact, the company also did an analysis of the change for the
previous years
For each issue write a note for the audit file (3-5 sentences) identify the type of
accounting change or error, the appropriate accounting treatment, include
amounts where applicable and how net income would be impacted if the issue
needs correcting.
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