Strategic Pre-Incident Changes: Prevention initiatives are a vital part of business contingency plan and play a key role in eliminating or mitigating potential hazards before an incident occurs. First, SterlingCrest will form a risk management department that will be responsible for conducting risk assessments for each corporate department and for the retail stores. The Risk Management department will be responsible for coordinating the efforts of the risk assessments and for the business contingency planning. Each department and store will be responsible for maintaining the business contingency plans within the guidelines and timelines provided by the Risk Management department. To aid in the risk assessment process, SterlingCrest will utilize a variety of tools to assess several types of risk with a department and prevent losses from occurring.
The law on confidentiality and restrictive covenants are in place to ensure that employer’s business interests are protected. Employers may rely on mechanisms such as the confidentiality clauses and restrictive covenants to protect their businesses from damaging competition, disclosure of trade secrets and confidential information. The objective of these provisions is to avoid employees from abusing they employer’s business interests when the employment has come to end. The degree of protection provided to employers differs if the employee has ended the contract of employment. The implied duty of fidelity protects business interests and imposes a obligation employee must not disclose any information or trade secrets of their employers business.
Licensers sometimes feel the licensing company doesn't understand or that it disregards or misrepresents the product. Internal conditions in the second-party company can adversely affect the marketing campaign. Any company that contracts with a company overseas needs to be aware of local customs and laws. The last thing a business needs to happen is legal charges being brought against them. If a situation should occur then the company could be covered by t the Conflict of laws which has three branches , Jurisdiction whether the forum court has the power to resolve the dispute at hand, Choice of law the law which is being applied to resolve the dispute, and Foreign judgments the ability to recognize and enforce a judgment from an external forum within the jurisdiction of the adjudicating forum.
Question 1: Auditors should not insist that their clients accept all proposed audit adjustments even though those that have an immaterial effect on the financial report. The auditors should be suspicious of any rejection of the clients and have to investigate deeper into the suspicious accounts. Moreover, auditors should not be careless even though they have close relationships with the clients and fear that they would lose potential auditing fees. Question 2: Materiality is a concept or convention within auditing and accounting relating to the importance/significance of an amount, transaction, or discrepancy. The objective of an audit of financial statements is to enable the auditor to express an opinion whether the financial statements are prepared, in all material respects, in conformity with an identified financial reporting framework of Generally Accepted Accounting Principles.
Workplace confidentiality requires that this information be identified and secured to prevent unauthorised access or release of the information and includes everything from policies on workplace Internet usage to nondisclosure agreements in employee contracts. Breaches of workplace confidentiality can result in a range of problems. Customers tend not to work with companies they think are untrustworthy, and consumers may specifically warn people away from companies that have mishandled private information like addresses, purchasing records, and credit card numbers. Companies can also experience compromises in their long term business plans if information about products in development or ideas a company is considering are released
According to Schroeder, Clark, & Cathey (2011), a contingency is a future event that could have an impact on the business. The “concern has been that disclosures under the current standard do not provide enough information to allow those who use the financial statements, such as investors to adequately assess the likelihood, timing and amount of liability related to the loss contingency” (Holme, C.). When a loss is possible, we can report the contingency financial statements—the statements do not reflect
It is important to recognize the regulation impact statement that is not prepared in connection with the issuance of AASB 13 as the amendments made are minor in nature. What can make AASB is adoption of a wider scope of proposed issues. Some of these issues are write-downs of sound assets required under the current implementation of fair-value accounting which adversely affect market sentiment. The provision on AASB should accommodate well the write-downs margin that impacts in a downward spiral that may lead to large-scale fire-sales of assets, and destabilizing, pro-cyclical feedback effects. These damaging feedback effects worsen liquidity problems and contribute to the conversion of liquidity problems into solvency
Decision Making Accounting (ACC) 561 November 11, 2010 Eddie Mattison, Facilitator Decision Making Budgets and Performance Reports “Budgets…help to coordinate and implement plans. They are the chief devices for disciplining management planning. Without budgets, planning may not get the front and center focus that it usually deserves.” (Horngren at el. 2008, p. 13) Guillermo must be able to operate within his budgets; otherwise he may begin to operate at a profit loss. Creating a budget will allow Guillermo to know the exact amount of money that he has to allocate to specific expenses.
Adhering to compliance is crucial to prevent companies from failing and taking huge financial loses. McBride must implement a system of audit compliance committees that will help mitigate non-compliance. Audit compliance committees will review financial documents, including receipts, documents, stocks, trades, shares, investment numbers and any other financial documentation. Non-compliance includes behavior and unethical actions performed by senior management that will be audited and monitored by the compliance committee. The committee will consist of internal and external auditors who will each have a part in ensuring McBride continues to perform and service the needs of customers
The storing of such data calls for necessary security that would protect the employees’ privacy on their information from any litigation or theft. For Huffman Trucking to ensure the protection of employees’ information, it must address the risks related to the safeguarding of confidential information. That is, the company will ensure that no harm would come to the business. However, irresponsive of the procedure of handling the crucial information, the company must implement security measures to effectively safeguard the data, and the assets of the business, as well, from inherent threats such as litigation and