Corporation
Audit Report
COMPANY HISTORY
Microsoft is an American corporation founded by
Paul Allen and Bill Gates in 1975.
The company was founded when Allen and Gates
made a deal with MITS to write a form of the new
BASIC programming language for Altair
microcomputers.
MICROSOFT TODAY
Microsoft invents, manufactures, and licenses
goods and services related to computing.
Products of Microsoft include operating
systems, devices, computers, tablets, servers,
phones, video games, and many more.
WHY WE SELECTED
MICROSOFT
INVENTORY ACCOUNT
MICROSOFTS ENVIRONMENT
Affected
Accounts
Possible
Manipulation
Inventory, A/P
Under-record
Purchase
Record Purchase
in Later Period
Sell Inventory
COGS, Inventory
Not recording
COGS
Record the Low
Amount of
Inventory
Obsolete Inventory
Loss on Inventory,
Inventory
Not recording
Inventory Count
Inventory
Shrinkage,
Inventory
Over-counting
Inventory
Purchase Materials
Theft of Inventory
Overstatement of
inventory to
misguide financial
statement users
Fictitious Vendors
Inventory Shortage
Adjustment
Photocopies
Customer
Complaints
MATERIALITY
Type of Transaction
Materiality Threshold
Three-way match,
automatic vouching,
approvals
$125M
$5M
AUDIT PROGRAM