...|Details of Assessment | |Term and Year |3, 2013 |Time allowed |Week 9 | |Assessment Type |Assignment |Assessment Weighting |20% Total | |Date | |Room | | |Details of Subject | |Qualification |FNS60210 Advanced Diploma of Accounting | |Subject Name |Auditing and Reporting | |Details of Unit(s) of competency | |Unit Code |FNSACC602A |Unit Title |Audit and Report on Financial systems and records | |Details of Student | |Student...
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...budgets in a business environment Assessment You should use this file to complete your Assessment. • The first thing you need to do is save a copy of this document, either onto your computer or a USB drive • Then work through your Assessment, remembering to save your work regularly • When you’ve finished, print out a copy to keep for reference • Then, go to www.vision2learn.com and send your completed Assessment to your tutor via your My Study area – make sure it is clearly marked with your name, the course title and the Unit and Assessment number. Please note that this Assessment document has 7 pages and is made up of 3 Sections. Name: Section 1: The purpose of budgets This section will help you to evidence Learning Outcome 1: Understand the purpose of budgets in a business environment. |Learning objective |Place in Assessment | |1.1 Explain the purpose of budgets for managing financial resources to meet business |Question 1 Page 1 | |requirements | | 1. Why are budgets used to manage financial resources? [1.1] A budget is a plan translated into money and a tool for spread resources and perform strategic plans. Financial management bring planning, organising...
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...Contingencies -legal actions -Government investigations -Claims -Proceedings Situations that have already occurred but it isn’t clear that these situations have given rise to liabilities because we do not know if we will be making future payments. Loss contingency is an existing uncertain situation involving potential loss depending on whether some future even occurs. Depends on the 1) The likelihood that the confirming event will occur 2) What can be determined about the amount of loss Only before the financial statement date…regardless of the likelihood of the event if it happened after the financial statement day we do not accrue it. The company sold the defective products…so here the event giving rise to the potential liability has occurred. The uncertainty does not relate to the past event, but to the potential litigation losses that could occur in the future. Likelihood…a) Probable…confirming event is likely to occur b) Reasonably possible…..the chance the confirming event will occur is more than remote but less than likely c) Remote…The chance the confirming event will occur is slight. Amount…a) known b) Reasonably estimable c) Not reasonably estimable Liability is accrued if both it is probable and at least the amount is reasonably estimated. Amount Know ...
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...the problem of household financial management. It discusses the relationship between mothers spending behavior and their knowledge in financial management. Related literature According to Lusardi and Mitchell, 2009 financial knowledge is Increasing knowledge about the financial matters that enhances an individual’s ability to make informed decisions about how to control and manage their finances. Financial knowledge has implications for how individuals spend, save and invest money, as well as how they budget and set monetary goals. Research shows that lack of financial knowledge is related to debt (Norvilitis et al., 2006) and increased knowledge can lead to individuals engaging in positive financial practices and fewer risky ones (Borden et al., 2008; Hilgert, Hogarth, & Beverly, 2003). Adults with better financial knowledge are more likely to plan for retirement and engage in financial practices that lead to asset accumulation. Normally, gains in financial knowledge can be tested immediately upon completion of the program, by asking participants a set of questions that cover a range of personal finance topics. Ideally, both pre and post-tests should be implemented to effectively assess a program’s impact on individuals’ financial knowledge, assuming that participants have had long enough exposure to program interventions (NEFE, 2013). Borden et al., 2008 attitude toward financial matters and practices is an important predictor of financial behavior. Attitudes, values...
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...incorporating the necessary marketing, financial, legal, organizational and administrative components. Course Objectives After completing the course, the student will be able to: 1. Apply acquired business skills (finance, accounting, marketing, management, negotiation, human relations, legal, and administrative) to create an intra or entrepreneurial business plan for the development and growth of a beneficial and profitable venture. 2. Improve on key business skills including writing, oral communications, goal-setting, and organizational leadership and planning. 3. Produce a business planning document that will enable you to successfully implement your Purpose III Constructive Action project. Course Relevance to CA The course introduces the students to business management: planning, organizing, staffing, directing, and controlling that are applicable to managing entrepreneurial or intrapreneurial ventures. This course prepares the students for real life business operations and teaches them practical application of theoretical learning. Course Prerequisite Purpose I Constructive Action Required Textbook: Stutely, R. (2007). The definitive business plan: the fast-track to intelligent business planning for executives and entrepreneurs. Financial TimesPrentice Hall. ISBN: 978-0273710967. Other Required Readings: h Handouts, New York Times, The Wall Street Journal, Internet and other supplementary materials. Assessments ASSIGNMENTS | Points (or % of Grading)...
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...PHILIPPINE STANDARD ON AUDITING 570 (REDRAFTED) GOING CONCERN (Effective for audits of financial statements for periods beginning on or after December 15, 2009) * CONTENTS Paragraph Introduction Scope of this PSA................................................................................................ Effective Date..................................................................................................... Objectives........................................................................................................... Requirements Risk Assessment Procedures and Related Activities.......................................... Evaluating Management’s Assessment.............................................................. Period beyond Management’s Assessment......................................................... Additional Audit Procedures When Events or Conditions Are Identified.......... Audit Conclusions and Reporting....................................................................... Use of Going Concern Assumption Appropriate but a Material Uncertainty Exists……………………………………….……… Use of Going Concern Assumption Inappropriate............................................. Management Unwilling to Make or Extend Its Assessment.............................. Communication with Those Charged with Governance.................................... Significant Delay in the Approval of Financial Statements............................... Application and Other Explanatory Material...
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...A Case Study in Human Resource Management Practices Name: Cadien Vaccianna Course Number: HRMN 495 School: University of Maryland Professor: DR Henderson Date: June 14, 2016 Introduction PAC is a company that deals in the manufacturing of high-quality specialty components that are essential in the computer industry. PAC Resources was initiated by David Dukakis in early 1990s. PAC resources started as a small unit operating in a temporary office. In the preceding years, PAC Resources has managed to grow. Particularly, the company has managed to employ 835 personnel working as full-time workers. Additionally, the company has a large facility that hosts most of the operations. PAC Resources has managed to maintain the line of production and position despite the recession in the industry. The company has a market for the products in the United States and Asia. The major source of revenue for PAC Resources originates from the contract they have with a particular manufacturer. The contract involves building specific high-quality specialty components for the computer manufacturing company. The reliance on the single source of revenues has been the subject of worry for PAC Resources. The company has been focusing on strategies that will help in expanding the customer base. Other intentions of the company include; reducing the rate at which the...
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... general ledger, and so on) and e-commerce (Internet sales and marketing) applications. The paper will include the rationale supporting each monitoring activity you propose and any recommended course of action to be taken when a significant risk is identified. Week 4 Individual Assignment Outsourcing Risks Prepare a 3- to 5-page paper that identifies the possible risks to an organization in each of the following outsourcing situations: a) the use of an external service provider for your data storage; b) the use of an enterprise service provider for processing information systems applications such as a payroll, human resources, or sales order taking; c) the use of a vendor to support your desktop computers; and d) the use of a vendor to provide network support. The paper will include a risk mitigation strategy for each situation. One mitigation strategy, because of personnel and facility limitations, cannot be proposed in the paper, because it eliminates the outsourcing by bringing the situation in house. Week 5 Team Assignment McBride Financial Services Risk...
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...Nowadays, an increasingly number of companies pays attention to the ways which can stimulate people. Some people think that financial methods are the best way to motivate all employees. However, financial methods of motivation are not always the most suitable way to motivate employees, and moreover not all employees. According some study, people have obvious motivation for working. On the contrary, from companies' aspect, using financial reward schemes to motivate also have several problems, summarized as follows: First, are financial rewards costs or investment? Financial rewards are salary or wages, for a company is money. Money is both cost and investment, but Managers have different opinion. Some managers who think financial rewards as company's cost set low payment standard naturally, as little as possible raise, even no raise. Other managers who think financial rewards as the investment expect to motivate employees through high payment, high benefits, and bonuses, raises. They also expect to get a return from this investment. The two views reflect the very different management philosophy, resulting in a distinct managerial effect. Second, are financial rewards needs of high level or low level? It seems money is the low-level, at least not enough noble. In fact, under normal situation, money can help people to achieve any level of Maslow's hierarchy of needs: physiological, safety, belongingness and love, esteem and self-actualization. For most people, income is a flag...
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...In 1994, Cartwright Lumber Company was established as a partnership by Mark Cartwright and his brother-in-law Henry Stark. However, in 2001, Cartwright brought out Henry’s interest for $105,000 and incorporated the company. About 55% of the total sales of Cartwright Lumber Company were made in the six months from April through September. There were no sales representative; orders were taken exclusively over telephone. Sales volume had been largely on the basis of successful price competition, made possible by careful control of operating expenses and by quantity purchases of material at substantial discounts. Besides, good relationship with suppliers and high loyalty of employees contributed to its success. Cartwright Lumber Company’s financial status was promising; from 2001 to 2004, they experienced an average sales increase rate of about 29.7% yearly. However, debt existed. In order to buy off Stark’s interest, Cartwright got a loan of $70,000 in late 2001; the loan was secured by land and buildings, carried an interest rate of 11%, and was repayable in quarterly installments at the rate of $7,000 a year over the next 10 years. During the last two years, Cartwright Lumber Company was short for funds arising from the purchase of Stark’s interest in the business and the additional investment in working capital...
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...opportunities may erode an auditor’s objectivity and independence when making audit judgments. The profession contends that aspects of the auditing environment such as peer review, consultation review, and auditor professionalism serve to mitigate this risk. This study examines the impact of financial dependence, consultation review requirement, and moral development on a judgment based audit decision. Fifty-four experienced auditors were asked to assess the appropriateness of an audit client’s proposed change in accounting estimate for warranties. Two levels of financial dependence (Large client with potential for additional consulting revenues / Small client) and two levels of consultation review requirement (Required / Not required) were manipulated in the case materials. Moral development was measured using the Defining Issues Test (DIT) p-score. Results of the tests indicate that the presence of a consultation review requirement reduced the auditors’ assessments of the appropriateness of the accounting treatment; in addition, higher scores on the DIT were associated with lower assessments of the appropriateness of the accounting treatment. Financial dependence did not influence the assessment of the appropriateness of the accounting treatment. Implications for practice are discussed....
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...Introduction Arguably, solvency has become more crucial in the audit process over the last decade. When auditing large corporate groups, it was suggested that solvency assessments were ‘mission impossible’ because of the complexity of company structure and financial transaction, the creative accounting, and consolidated financial statement. A deliberation on matters of entities’ going concern is required. Significance of solvency assessments Solvency entails having the capacity to meet ‘debts’ as they fall due (Clarke and Dean 2007). Australia’s Corporations Act 2001(Cth) requires that directors assess continually whether their company is solvent before allowing it to continue trading. When preparing the annual report, directors were imposed the obligations to consider some financial indicators and gain insights regarding companies’ capacities meeting the creditors’ claims. It is important for directors’ fully understanding the concept of insolvency to regulate and operate companies in order, and then the ultimate financial data may properly disclose to shareholders. According to ASA200.42, auditors have the responsibilities of ‘forming and expressing an opinion on the financial report’. In order to help investors making correct judgments based on financial statement, auditors need to assess whether the going concern assumption is satisfied in audit process. They also have the duty of care to attest continually the client companies’ solvency status. Solvency conclusions ...
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...discussion in paragraphs 450-20-55-10 through 55-17 can be useful in understanding the requirements of Subtopic 450-20 as they relate to environmental remediation liabilities. SFAS No. 5 Accounting for Contingencies INTRODUCTION 1. For the purpose of this Statement, a contingency is defined as an existing condition, situation, or set of circumstances involving uncertainty as to possible gain (hereinafter a "gain contingency") or loss (hereinafter a "loss contingency ") to an enterprise that will ultimately be resolved when one or more future events occur or fail to occur. Resolution of the uncertainty may confirm the acquisition of an asset or the reduction of a liability orthe loss or impairment of an asset or the incurrence of a liability. Litigation, Claims, and Assessments 450-20-55-10 The following factors should be considered in determining whether accrual and/or disclosure is required with respect to pending or threatened litigation and actual or possible claims and assessments: • a. The period in which the underlying cause (that is, the cause for action) of the pending or threatened litigation or of the actual or possible claim or assessment occurred • b. The degree of probability of an unfavorable outcome • c. The ability to make a reasonable estimate of the amount of loss. Examples 1 through 2 (see paragraphs 450-20-55-18 through 55-35) illustrate the consideration of these factors in determining...
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...READER: “Business Case Usage Guidelines” have been developed to accompany this template. | |Table of Contents | | | | Executive Summary 2 Background 3 Problem / Opportunity 3 Current Situation 3 Project Description 4 Project Description 4 Objectives 4 Scope 4 Out of Scope 4 Anticipated Outcomes 4 Stakeholders 5 Strategic Alignment 6 Environment Analysis 7 Alternatives 8 Business & Operational Impacts 9 Project Risk Assessment 10 Risk of Project and each Alternative (Not including Status Quo) 10 Risk of Not Proceeding with Project (Status Quo) 11 Cost/Benefit Analysis 12 Quantitative Analysis – Financial Cost & Benefit: 12 Qualitative Analysis – Non-Financial Benefits & Costs: 14 Assumptions 14 Conclusions & Recommendations 15 Conclusions 15 Recommendations 15 Project Responsibility 15 Project Accountability 15 Implementation Strategy 16 Review & Approval Process 17 Review Process 17 Approval Process 17 Business Case Signoff 17 |Section |Executive Summary | |1 ...
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...IFRS 10 Consolidated Financial Statements and IFRS 12 Disclosure of Interests in Other Entities In The IASB’s approach to effect analysis Before we issue new requirements, or make amendments to existing IFRSs, we consider the costs and benefits of what we are proposing. This includes an assessment of both the costs incurred by preparers of financial statements and the costs incurred by users of financial statements when information is not available. We also consider the comparative advantage that preparers have in developing information that users would otherwise have to develop themselves. What is the measurement bar for our assessment? We expect our standards to have economic effects, and we understand that those effects may be beneficial for some entities and detrimental to others. For example, a change in financial reporting requirements might affect the cost of capital for individual entities by changing the absolute or relative level of information asymmetry associated with those entities. We assess these associated costs and benefits by reference to the overall objective of financial reporting. We try to understand how the changes will contribute towards the development of a single set of high quality global accounting standards by improving the allocation of capital. We therefore also consider the benefit of better economic decision-making as a result of improved financial reporting. The boundaries of our assessment a) Uncertainties The assessment is undertaken before...
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