You are involved in your CPA firms first audit of Zorostria, a retailer of artwo

Question

You are involved in your CPA firms first audit of Zorostria, a retailer of artwork, primarily paintings and photographs purchased from artists in Southeast Asia (particularly Vietnam, Cambodia, and Laos.) Zorostria has stores in seven cities throughout the United States, Mexico, and Canada. Discuss difficulties you should anticipate in planning the observation of physical inventory on this engagement because of: a. The different locations of stores. b. The nature of artwork. c. Assume that Zorostrias records indicate that it shipped goods on December 31 for a very major sale to a customer in Edmonton, Alberta, Canada. (1) Since it was shipped as of December 31, does this represent a sale for the year ended on that date? (2) What additional audit steps could be taken to determine that the sale is valid?

Explanation / Answer

here Zorostria has stores in seven cities throughout the United States, Mexico, and Canada, in different countires would have financial closing period is different and taxes rates also different.

we will audit the steps in different countries we need to follow the below items like

Shipping charges,

Input tax (on purchase )

output tax (  on sales)

service tax

discounts

how much sales was happen include all charges

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