Solved Case Analysis: Computer Peripherals, Inc. A by Mark E. Haskins, Robert J. Sack, Sheryl Gatto

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Description

Pat Coleman, new audit partner on the Computer Peripherals account, was feeling the pressure. The company’s CEO insisted that the audit be completed by the following week, but Pat wondered whether issues the audit raised, such as increases in receivables and inventories, had been sufficiently investigated and satisfactorily resolved. Her hesitation could be attributed to her incomplete understanding of the factors that affect the company’s substantial inventory position of XB-1500 printers and of the reasons why some of its biggest accounts had growing outstanding balances. This case provides a context for students to consider an industry’s product market environment and how it might influence one’s thinking about a particular company’s financial performance and practices. The A and B cases together may be used as part of an introductory audit course within the Understanding Client Constituencies module or as a standalone pair of cases to help students understand the critical need for a broadened business perspective in the conduct of an audit of revenues and/or inventory.

Publishing Authority:

Darden Business Publishing – University of Virginia

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