There are four types of transactions involved in the inventory and warehousing cycle of Apollo Shoes, Inc., ordering of goods for sale, receipt of the ordered goods, storage of the merchandise, and the shipping of goods to customers. Each of these processes requires that the auditor verify that adequate controls are maintained and that the proper documents are in place for each portion of the process. Therefore, the audit will involve analytical procedures, test of controls and substantive tests on each part of the cycle. Analytical procedure Given the fact that the inventory process will vary between companies, Anderson Olds and Watershed will obtain a thorough understanding of the entire flow of goods from purchase to shipment within the Apollo Shoes organization. Analytical procedures “examine the relationship of inventory account balances with other financial statement accounts” [ (Arens, Elder, & Beasley, 2006, p. 689) ] and are used to “assess the reasonableness of inventory-related balances” [ (Arens, Elder, & Beasley, 2006, p. 689) ].
Audit Program Design Part III Senyo Adiko ACC/546 June 9, 2013 Chandria Jones Audit Program Design Part III During phase III of Apollo shoes audit plan, we will focus on the inventory and warehouse cycle as well as the cash cycle. Cash and inventory are vulnerable to fraudulent activities so it is important to assess the risks of those areas. We are responsible to conduct an unbiased and fair audit according to the PCAOB auditing standards. Our center of interest would be about the objectives of the audit, tests of controls, and substantive tests of transactions. We will also conduct analytical procedures for both cash, and inventory and warehouse cycles.
1 Research Proposal: Improving Information Management RES/351 Improving Information Management 2 Research Proposal: Improving Information Management A company's inability to manage information efficiently can have a devastating effect on the organizations ability to operate effectively. The research proposal presented in this paper has the intentions of addressing the problem of mismanaged information that has resulted in a loss of time, money, and resources for the Corporate Security Initiatives Corporation. This research study will be a straightforward investigation and examination of the way information is sent and received, processed, analyzed, and used by the various departments within the organization. This proposal outlines the research process and design to be used to collect and analyze data, draw conclusions from that data, and how the results from the research will be presented to the company's leaders. Research Design and Process Companies today operate in a fast paced, highly competitive environment in which every decision, large or small, can have a dramatic effect on an organization's success.
The purpose of this paper is to illustrate the demanding requirements needed to comply with the Sarbanes-Oxley Act. The author’s thesis is that a corporate compliance report will summarize a strategy that establishes the COSO eight step ERM framework that will allow Raytheon to manage risk while identifying new avenues to increase market share. The first step for Raytheon is to establish an ERM approach that ensures internal controls as well as corporate governance system are active. COSO Enterprise Risk Management Managing risk has become a functionality that requires commitment and discipline to probably and accurately report the company’s transactions. In order to manage accuracy and reporting, the entire organization, from top to bottom, must understand the objectives, risk and standards that must be followed.
The first is adverse selection. Adverse selection occurs because some persons, such as managers and other insiders know more about the current condition and future prospects of the firm than outside investors. Financial reporting is one of the mechanisms that are used to control the problem of adverse selection by credibly converting inside information into outside information. The second one is moral hazard. This problem occurs because of the separation of ownership and control that characterizes most medium and large
There are several issues to consider when comparing the financial ratios of a public company to the industry averages. It is important to allow for any material differences in accounting policies between the specific company and the industry norms. It is also important to determine whether ratios were calculated before or after adjustments were made to the balance sheet or income statement. (Atrill & McLaney, 1997) It is also extremely important that one make sure that the financial data was developed using comparable accounting methods, classification procedures, and valuation bases. I have chosen to analyze Branch Banking & Trusts financial ratios and compare them to industry averages.
Spend analysis is not automatically computer generated; however, the use of sophisticated software is used in some companies such as Excel spreadsheets and Access database. It is very important to be able to analyze spend. Sometime in order to save money you must spend money. Spend analysis software is available but can initially be very costly but the investment promises big returns. Data analysis and thinking skills are very critical to the spend analysis process because the staff that is responsible for the spend analysis must have the ability and skills needed to process large amounts of data.
Managers need to be careful of overpricing or under-pricing goods due to allocation of costs to each product. As was shown with the Wilkerson case on further analysis of costs using the activity based costing method the company had been under-pricing some goods while over pricing others. This was affecting their profits and their ability to make sound business decisions on the pricing of products to meet market demands. 6. Activity based costing is more complex to use however used correctly should improve the accuracy of allocating indirect costs to cost objects.
The total cost approach would recognize this to be the case, and would hopefully result in not implementing such a change. 1.14) What are several areas in which finance and logistics might interface? Finance and logistics interface in many aspects of an organization’s life, including budget decisions that impact the type of equipment the logistics personnel will use, and in inventory concerns, especially where inflation and deflation create differing values in stocked inventories of the same item. 2.1) In what ways can information be helpful in logistics and supply chain management? Information creates greater knowledge and visibility across the supply chain, greater awareness of customer demand, which can help improve planning and reduce variability in the supply chain, better coordination across the entire supply chain, and streamlined order
For the first step, we will calculate the cost of capital before the firm had undergone the restructuring. There are some assumptions that we need to make in order to calculate this. Please see the attached document step 1 for the assumptions. Next we will focus on calculating the betas for the individual product lines after utilizing the capital. This is important because the D/E ratio has obviously changed after using the capital for the various acquisitions.