Auditing case study Essay Example | Topics and Well Written Essays - 2000 words

Auditing campaign study - Essay Examples best performing merchandise with a 4% raise in sales even though its export sales recorded a 1% contraction when compared to the previous financial year. Overall group data reported that sales into the U.S.A market rose by 24% whilst the European market indicated a 12% decline. The companys overall profitability was back up by the strengthening of the US dollar when compared with the sterling pound during this period.2. The companys profit in the lead tax stood at 2,052,000 in 2012/13 when compared with 2011/12 whereby it stood at 843,000 before the IAS 19 pension adjustment. The principal(prenominal) expenditure stood at 555,000. The other expenses were 228,000 which was mostly related to executive transition costs. Looking at their study products, Technical Fiber Products had an operating profit standing at 1,450,000 compared to 2011/12 when it stood at 629,000. Their turnover figures grew by intimately 6% on the preceding years tur nover figure of 12,599,000. Sales in the Defense and Aerospace sectors represented an 18% and 20% of the overall sales respectively. The sales of TFP into the U.S.A increased by 16% and 17% in US dollar and Sterling terms respectively. The U.S.A represented the TFPs most important market with which accounted for about 55% of its turnover opus it stood at 50% over the preceding year. It was however not so rosy in when looking at the same sales out of the U.S.A which shrunk by about 6%. The company took several steps aimed at consolidating the US operations. It closed the Cincinnati installing in mid-2012 while it will take until the third quarter of 2013 for the new facility at Schenectady to achieve to several consumer programs. The Schenectady facility needed an investment about US$3million initially. In conclusion, there is heightened audit risk in tax income area.1. According to the annual report, the company is undergoing major re alignments in its principle market in the U.S .The closures of the Cincinnati coif and future closure of