Please do not accept the assignment if you do not understand or cannot meet deadline.
I need help with a paper approximately 650 words addressing the following scenario:
You are the senior auditor assigned to the team performing an audit for Restorative Pharmaceutical Corporation (RPC), a 10-year-old publicly held corporation listed on the New York Stock Exchange (NYSE) which specializes in anti-aging products such as vitamins protein infused beverages and dietary supplements. RPC’s corporate office is located in San Diego, CA.
These need to be addressed:
The audit firm’s lead and senior audit manager and firm partner, Scott Payne, CPA, has requested that you develop two audit/internal control procedures which address the following issues which emerged during the past three reviews of RPC:
- The company’s newest product, an acai and mango blend smoothie, is under scrutiny by the FDA because claims have been initiated by consumers indicating that the product does not “improve memory by 50% and lower cholesterol count by 50% in those over 50” as RPC’s advertisements had claimed. A class action lawsuit is pending for $2 million. RPC’s attorneys indicate that there may be some merit to the claims, although the product is generally safe. No entry or disclosure was provided in the year-end financial statements.
- The company’s supply chain is subject to some risk due to the Mexican infrastructure. Also, certain inventory shipments did not arrive in a timely manner over the border, and this resulted in lost sales of approximately $5 million over the course of a year.