Question

1. What do the IoT companies produce? How has the digital age changed the production cycle?
2. How can processes, policies and controls related to a company’s finance and investment cycle affect the company’s cash flow, audit opinion, market share and stock price?
3. What can the audit team do in the planning stages of the audit to ensure the audit is completed in a timely and efficient way?
4. Why would people in the general public, who have not worked at, lend money to, invested in a company care about a company’s audited financial statements and become concerned if the company is a going concern?
5. Why strong interpersonal skills, ethics and professional skepticism are important attributes for auditors and accounting professionals to have?
6. Why is it important that auditors familiarize themselves with the acquisition and expenditure cycle?

Answer 1

Top Internet-of-Things (IoT) Companies produced

IoT services for Mobile, Web, Data, and Embedded levels.

High-level development for devices & sensors, Data Analysis, UI/UX design web & Mobile App Development.

Industrial IoT-Build, Develop, & Deploy smart connected solutions

digital age changed the production cycle

The digital age has brought with it a new way of thinking about manufacturing and operations. Interconnectivity of machinery sensors and control systems allows real- time optimization of manufacturing and production processes and supply chain networks.

Information technology (IT) is both the key enabler for future manufacturing enterprises and a transformer of organizations and markets. By reducing barriers to collaboration, compressing lead time, eliminating physical movement, and enriching decision-making, IT helps manufacturers achieve their goal of meeting customer needs better, quicker, and cheaper. By providing global reach and easy connectivity, information technology has fostered cooperation while increasing market competition, and heightened customer expectations.

processes, policies and controls related to a company’s finance and investment cycle affect the company’s cash flow, audit opinion, market share and stock price

generally, a comprehensive analysis of the balance sheet can offer several quick views. In order for the balance sheet to ‘balance,’ assets must equal liabilities plus equity. Analysts view the assets minus liabilities as the book value or equity of the firm. In some instances, analysts may also look at the total capital of the firm which analyzes liabilities and equity together. In the asset portion of the balance sheet, analysts will typically be looking at long term assets and how efficiently a company manages its receivables in the short-term.

There are a variety of ratios analysts use to gauge the efficiency of a company’s balance sheet. Some of the most common include asset turnover, the quick ratio, receivables turnover, days to sales, debt to assets, and debt to equity.

The final category on the income statement factors in capital expenses. The last expenses to be considered here include interest, tax, and extraordinary items. The subtraction of these items results in the bottom line net income or total amount of earnings a company has achieved.

Offering a great deal of transparency on the company’s operating activities, the income statement is also a key driver of the company’s other two financial statements. Net income at the end of a period becomes part of the company’s short-term assets. Net income is also carried over to the cash flow statement where it serves as the top line item for operating activities. Sales booked during the period are also added to the company’s short term assets as accounts receivable.

it is important that auditors familiarize themselves with the acquisition and expenditure cycle

Acquisition and Expenditure Cycle is significant for any audit.Hence this is the major area of audit and hence auditors have to be very much familiarized with acquisition and expenditure cycle to ensure all expenses in books are properly authorised and accounted without any overstatement or understatement