You are engaged to audit the Ferrick Corporation for the year ended December

| September 7, 2016

Question
You are engaged to audit the Ferrick Corporation for the year ended December 31, 2011. Only merchandise shipped by the Ferrick Corporation to customers up to and including December 30, 2011, has been eliminated from inventory. The inventory as determined by physical inventory count has been recorded on the books by the company’s controller. No perpetual inventory records are maintained. All sales are made on an FOB’shipping point basis. You are to assume that all purchase invoices have been correctly recorded.

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