Place yourself in the shoes of an internal auditor who specializes in the review of accounting transactions for a retailer. While reviewing seasonal and cyclical data, you notice that managers are approving the use of long-term funds to purchase seasonal
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Place yourself in the shoes of an internal auditor who specializes in the review of accounting transactions for a retailer. While reviewing seasonal and cyclical data, you notice that managers are approving the use of long-term funds to purchase seasonal inventory items and to finance additional current assets. In addition, they are using current liabilities for long-term projects. Imagine that you must present your findings to the management group. Discuss what potential concerns are associated with this practice? Also, in your response, define current liabilities, present at least one example of a current liability and discuss what it represents, and compare and contrast current liabilities with contingencies. (300-400 word count range).
