Manufacturing
We have developed our approach to assessing audit risk in manufacturing environments based on many years of experience in the industry. We start by developing a complete understanding of the manufacturing process, including initial raw material costs, additional cost elements added during the manufacturing processes, and manufacturing overhead cost pools. Also taken into account:
- Inventory cost accounting system
- Inventory valuation (raw materials, work-in-process and finished product)
- New accounting system implementation / transition
- Vendor relationships and distribution
- Fixed assets
- Interstate transport
- Owned and leased property
- Relevant financial statement accruals
- Revenue recognition policies
- Material contracts
- Internal controls
- Financing agreements
This big-picture perspective gives us the ability to provide thoughtful advice while conducting audits and providing tax consulting services.