ACCT 310 Auditing Audit Assignment 2 Audit Risk and Materiality (Submission: By 11 April 2012, Wednesday) Messier’s Chapter 3: Question 3-16 (30%) Question 3-19 (70%) Question 3-16 Assume that you are the new audit senior on the LV Drug Corporation (LVD) engagement. LVD is a pharmaceutical company that has three successful drugs and a number of drugs in progress in its research and development pipeline. You are considering detection risk at the financial statement level and it is important to identify the inherent risks and control risks that LVD has and how they relate to audit risk. Required: For each of the following factors, indicate whether it is an inherent risk or a control risk factor, and its effect on detection risk. In answering this question, assume that each factor is independent of the others.
Simulation Review HCS 405 February 16, 2015 Simulation Review Gilbert Sanchez, the Chief Executive Officer (CEO) of Elijah Heart Center (EHC) has requested the accounting firm Huber & Guizot perform an audit of the current budget being used by EHC to reverse the current financial shortfall they are facing. (University of Phoenix, 2012). Elijah Heart Center is an advanced coronary care unit that can accommodate one hundred and forty patients. The financial department of EHC has stated that patient volume and revenues are growing rapidly however the accounting statements clearly show that profitability is dropping. (University of Phoenix, 2012).
After reading the Cerjugo case, there are a number of symptoms that can be identified throughout the case that suggest that the multi-million dollar manufacturing and distribution company is experiencing major difficulties.The first and most obvious symptom is the fact that the the juice sector of their company has not been able to reach its targeted profir margin for 2 years in a row.Another issue cerjugo encounters is high turnover rates in their sales force,including his manager of juice manufacturing and employees who do not feel motivated enough to fully understand the juice attributes which is hindering Cerjugo’s brand awareness.The lack of the employee understanding of the juice attributes hurts the company’s brand because employees are not able to effectively convey all the necessary information about the product to the consumers.furthermore cerjugo’s brand awareness will keep hindering as long as consumers are unaware of the “freshness”,all natural ingediants and the overall high quality of the juice which is Cerjugo’s main competitive advantage over their rivals. Root causes the root cause of the lack of employee understanding of the overall juice divison is the fact that theer is no job specialization what so ever.Each member of the sales force is required to sell beer and juice,however most of the employees were hired from when the company only sold beer and prefer to stay within their confort zone. The reward system the company is currently using is the root cause of the unmotivated salesforce and the high turnover rates,Cerjugo uses a performance bases reward system based on the beer and juice sales an employee makes. Another root cause is the organizational structure that Cerjugo curremtly uses. All the front line employees for both beer and juice production seem to be reporting back to only Carlos Menga the beer manager.The disorganization of
Belot Enterprises Case 1. Auditor David Robinson’s suggested compromise on the review of the Belot’s interim financial report (second quarter-from April1 through June 30) is appropriate. Because Belot Company has been struggled to survive in a mature and intensely competitive industry for several years, and the company has planned to implement an organizational Nail the Number campaign from April1 through June 30 to boost its quarterly operating income by 100 percent so that Belot Company will not be eliminated by its parent company, Helterbrand. During those three months, Belot Company has made many changes on its operation activities, such as products line, sales program, cost-cutting initiatives, and its accounting measurement, etc. Belot’s accounting general manager, Zachariah Crabtree decided to change the accounting method from “conservatism” to “precise point estimate” to record the company’s major discretionary accruals during its second quarter financial report; therefore, the company operating income dramatically has been increased 140 percent higher than the second quarter of prior year.
STOCK OPTION PAPER Tina Kelly ACC 201 Principles of Financial Accounting Instructor: Susanne Elliot October 15, 2012 In recent months there have been many news stories in the press about executive compensation with stock options. This type of compensation occurs when an executive is granted the “option” to purchase the company’s stock at a certain price sometime in the future. Corporations allow for their CEO’s to purchase options in stocks as an incentive of pay. This allows for them to pay CEO’s a salary of $200,000 annually, however give their CEO’s an opportunity to annually earn tens of millions of dollars. Unfortunately as we have experienced in live situations not all CEO’s follow their ethical responsibility to their organization and society.
MGMT 600 Full Class Business Planning Seminar Course Click Link Below To Buy: http://hwcampus.com/shop/mgmt-600-full-class/ Or Visit www.hwcampus.com MGMT 600 Business Planning Seminar NEW Course Keller MGMT 600 Course Project Industry Analysis Week 3 Keller 1. Complete the Industry Analysis. After working with your teammates, the component manager will develop your Industry Analysis (described in detail in this unit’s lecture). Use the rubric for the Written Plan to organize your information and to ensure that you have met the course requirements for this section of your business plan. 2.
• Cite a minimum of three references, beyond your text. • Post your paper as an attachment. Week 9 1. Capstone Discussion Question • How might pharmacy professionals help ensure patient safety when preparing and dispensing medication? How does the knowledge gained in this course help prepare you for a career in the pharmacy field?
A CEO throughout a crisis, constructs several decisions, a number of them turn wrong. While a number of decisions have unconstructive outcomes, Mulcahy believes you learn from them and construct improved choices subsequent time. When Mulcahy become the CEO in 2001, Xerox was tottering on the brink of bankruptcy of Chapter 11. The corporation had over $17 billion in debt and had accounted losses in all of the previous six years. A fresh reorganization of the sales force of company' had not gone as per to plan.
2010 CMA Part 1 Section D – Internal Controls & Ethics Limited Expenditure Account Estimated time 30 minutes The Board of Directors of a large corporation recently learned that some members of the senior management team had circumvented the company's internal controls for personal gain. The Board appointed a special task force of external auditors and outside legal counsel to investigate the situation. After extensive review, the task force has concluded that for a period of several years the expenses of the company’s chief executive officer, president, and vice president-public relations was charged to an account called the Limited Expenditure Account (LEA). The account was established five years ago and was not subject to the company's normal approval authorization process. Approximately $2,000,000 of requests for reimbursement were routinely processed and charged to LEA.
In May of 2011 The SEC filed suit alleging massive fraud against Brooke Corporation’s senior management. The SEC suit alleges that during the fiscal year of 2007 and the first and second quarters of 2008 senior management at Brooke Capital misrepresented the health of their business and its subsidiaries. Brooke Corporation’s business growth strategy relied heavily on its finance subsidiary and franchise fees. The average franchise fee was $165,000 which would have been financed through Brooke Credit Corporation; in the first quarter of 2007 a third of Brooke Corp’s operating revenue was from interest and franchise fees (Phillips, 2007). The same store sales for the first quarter of 2007 were down 3% from the previous year and in the fourth quarter of that year the recession officially started.