Date:June 2, 2012
To:Marge Roman
Roman Systems Inc.
From:Jane Doe
CA, Sylvain and Charest
CC:John Smith
instructor
Subject:Interim Audit Results
It was a pleasure to jazz an interim audit for Roman Systems Inc (RSI) as at April 30, grade 12. Following are the results of the interim audit work accomplished by Sylvain and Charest, Chartered Accountants.
General
Earnings before taxes for the period stop April 30, Year 12 are $ 1,375,000. RSIs shareholder lawfulness consists of $9,259,000 ($9,159,000 + $100,000).
RSIs liabilities are $2,741,000 and hence assets are $12 million.
radical Software
Cost of bare-assed software product and the link up bells of quickness included the salaries of 4 employees that were directly related to accounting software project trick be capitalized over the term of 3 course of instructions i.e., in total the amount $790,000 ($720,000 + $70,000).
The amortization write dispatch of $263,333.33 will need to be recorded for the terms of 3 years starting July 1, Year 12.
RSI cannot treat $135,000 of net countersign value for the old software as part of the cost of the new software by reallocating this balance.
The old software and related accumulated amortization take to be removed from the books at its net book value and the new software needs to be recorded as a new asset.
Revenues
result revenue is recognized upon completion of shipment and installation, $640,000 was earned in the month of April upon the completion of installation, even though the sign off was obtained days after the actual installation. Notes could have be do to the sign off sheet to maintain customer live with on the actual installation date and if that has been overlooked it can be included in the notes to the Financial statements.
In regards to the new product line of ABMs that generated transaction honorarium revenue of $4.25 million, the maintenance contract revenues relate to one year agreement signed with the clients. In accordance with the revenue...If you want to get a full essay, order it on our website: Orderessay
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