1) I think one of the mistakes Livingston made was to assume the source of the company's problem was the old computer financial reporting system. The old financial reporting system is only part of there was no collaboration to determine if the MCCS was the core problem of the company. Livingston made the determination that the MCCS was the root cause of losing contracts without other input. I would have gathered my team and perform an impact analysis to determine if there was any hidden problems with the current system that could be fixed in a faster cheaper way. Another issue is earlier on the meeting the MIS manager stated that he guessed the feasibility study would be the first step in the design, development and implementation of the new MCCS.
This internal control needs to remain as is and the books need to close now instead of the requested keeping open to record a deposit that is in transit. Falsifying of the bank statement and deposit transactions is one ethical violation that does not need to occur. Keeping the books open one more day to record a transaction is wrong. Recording the deposit after it arrives is blatantly false. The books need to be closed as planned and no fake transactions need to be recorded.
Project 2 – Recreation, Inc. 1. What are the inherent risks associated with Recreation’s IT environment? The lack of formal policies and procedures directly addressing IT functions is an inherent risk associated with Recreation’s IT environment. While the requests for development of new applications and changes to existing applications are supposed to be submitted to Dan before being put into place there is no actual required authorization needed for Patty to begin making the modifications or creating the application she could easily perform these actions without Dan’s approval. Also because Dan does not review the modifications and new applications until the following month there is the possibility of changes that are not appropriate or not approved being made and they wouldn’t be caught by Dan until the following month.
* Previous problem mainly caused as Trimco was not given sufficient lead time to respond to Navistar’s demands. * Incorrect Specifications (90/1571 – 5.73) * Caused due to incorrect specs received from Trimco or * Inability to respond to last minute changes sent by Trimco * Incorrectly sent parts (147/1571 – 9.35) * Caused Navistar to reorder parts and wait for them * Missing parts that were “robbed” for other interiors (85/1571 – 5.4%) * Management was ok if parts from kits in stock were used to complete products on the line as long as the stock could be replenished in
It would be my advice for Mr. Jones to not buy the stock because of the liability of current and future tax obligations which Mr. Jones would incur from the purchase of the stock. Since the tax identity of Smithon corporation would have not ceased, it is not a favorable purchase for Mr. Jones. Ina a case where the tax identity of a firm does not cease not to exist, the tax aspects will remain the same and so will the existing tax schedule. So in this case it would mean that Mr. Jones would not be allowed to change the financial year to end on December 31. The buyer in cases where he can’t change the legal entity is in a non -benefice situation, the buyer is limited to follow the current tax basis on the company’s assets even if the buyer paid more for the
Suppose that Cornelius believes that Elliot is not a good hire for Pharma. Can he fire Elliot? Although Adams may have had the legal right to hire Elliot without the consent of the others, it was a morally wrong decision not to seek the consent of the other shareholding partners. As a privately held corporation which is small in size, the promotion of business efficiency is an objective best served by enabling the owners to arrange the organization of the enterprise as they choose unless such decisions are outside the scope of the partnership business which would make it impossible to
Furthermore, Company X analyzed and prepared forecasts indicating that recovery could be expected by April 2011. From the information provided, it appears that they were not aware of the pending changes that were later announced by Company B. These factors indicate that in fact, Company X’s securities classified as available for sale are not other than temporary and do not need to be written down on the December 31, 2010 financial statements. However, I would note that if Company X had any indication as of December 31, 2010 that Company B would be making organizational changes, then it would then be necessary for them to report the securities which were classified as available for sale as other than temporary and respectively write them down on the balance sheets of the
Article Analysis University of Phoenix ACC291 Taking a look at whether or not companies are acting ethical because they have integrity or because they have to follow the laws set forth by the Sarbanes-Oxley Act of 2002 is something all investors should do before they invest. Companies do not always act ethically because they want to be open and honest with their customers, employees, or investors, some do it simply because they have to in order to abide by the laws, rules, and regulations, and then just barely. While reading “Eight Years After The Fact Is SOX Working? A Look At The Brooke Corporation” one can notice several things wrong and ways that could lead to unethical practices and behaviors in accounting. For instance the company founder Robert Orr held several roles in management for the parent company as well as finance officer and other key positions that could open the door to unethical behaviors (Hazels, 2010).
This is our major flaws in the credit report. There is not enough education to the society and consumers. If society as a whole knew the dangers of low credit scores early in their lives, then they would take care of their credit better. If everyone had access to their credit report 24 hours a day 7 days a week free of charge then they would know where they stand and would better manage their credit. Just like a bank account, if you can see on-line where your money is going then you can better avoid overdrawing your account.
5. The confidentiality agreement did limit the scope of the audit performed on ZZZZ Best. It is the job of the auditor to obtain sufficient and appropriate evidence. When Ernst & Whinney were not allowed to follow-up with anyone involved in the restoration process that limited their ability to gather evidence. The company should have been able to follow up with all venders and customers to attest to the validity of the financial statements and they were not able to do this and not able to gather the “appropriate and sufficient evidence” needed.