Accounting assignments

Rework and resubmit the project for final grading.

From the report, we have calculated the first year break-even points for the first years.Basically, the audit report is the written option which is made mainly for the financial statements as it is written by following the basic format. This kind of report follows the financial statementsof an organization by following some basic rules. This kind of report provides the best opinion on the reliability of the monetary statements. After being finalized all the monitorial issues, it provides the perfect evaluation which is known as the auditor’s report. It is mandatory from anaccreditedauditor. It explains the reliability of the organization regarding the organizational monetary statements.

After reviewing the PPMC report, we can notice the errors which are given below:

· In the first paragraph, there two errors which are,

Safe harbor statement under the private securities litigation act of 1995.

Changes in assumptions or changes in other factors affecting such statements.

· The second error is regarding the second sentence in the first paragraph.From the sentence, it seems thatthe report is written by referring to the projected statements though it is not the conventional accounting term.

· There is alsoan error in the third sentence as it statesto the corporate house. Here the first word is appearedto be the name of the firm which is written in the capital but the second one is not.

· In the last sentence, there is a use of ‘risk’ which is done in the introductory paragraph. The plural form is not correct.

· Another thing is important is here, that in that report the overall total for the commissions, marketing and sales are seemed to be the wrong place due to the error of the typing.

By analyzing the Audit report, we can make the summarization of the present.

We have seen the error regarding the location of it.In the introductory paragraph, the last sentence is wrong,and the word ‘risk’ is not correct here. The form should be plural. The overall sentence will be‘You should independently investigate and fully understand all risks before making investment decisions.’

The errors are alsofound in the substance part of the report:

· In the report, there the ‘accordance’ is being mentioned. But generally, thereshould not be any GAAP prerequisites according to the financial statements. The statements should be existed by referring to the statement ‘Projected Statements of Net Income’. For this reason, this sentence is not correct as it misleads the thought.

· Again, in the note 6 of the report, the transpositionserrors can be shown. So the financialstatements should be mentioned properly.The third quarter in the columns of 15% becomes ostensible. It means $5382, 000should be$5832,000.

Table 1 is given below:

Table 2 is given below:

Lastly, form our calculation, we have analyzed the value of the breakeven pointin terms of carts is 430,323 and the breakeven point in terms of the stores is 2152.