...Lakeside Auditing Case Study Case 1 Prepared by: January 27, 2011 1: An independent annual audit can provide credibility to information, and this could be very helpful for decision making. In this specific case, the owner of the Lakeside requires an independent CPA firm to perform an annual audit because the owner wants to show the public a “good-look” of its financial statements; since he would like to receive more capital by making his company public. In addition, good-looking financial statements of the company could provide good credit from the bank. To the lakeside company, the owner would like to provide audited financial statement to the bank to obtain the loan and receive the best possible interest rate. On the other hand, a decision by a bank loan officer about whether to make a loan to Lakeside Company and what rate of interest adequately compensates the bank for the level of risk assumed depends on an independent auditing report about lakeside’s financial reports. An auditing report about the company is reliable for the bank; it can significantly reduce the level of information risk. If the loan officer has assurance from the auditors that the company’s financial statements are prepared in accordance with GAAP, he or she will have more confidence in his or her assessment of business risk. By reducing information risk, the audit reduces the overall risk to the bank. 2: According to GAAS, the auditor must obtain a sufficient understanding of the entity and...
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... Assn. 1: Bottling Company Case Study Strayer University Professor Anthony Myers MAT 300-Statistics 06/15/2014 Imagine you are a manager at a major bottling company. Customers have begun to complain that the bottles of the brand of soda produced in your company contain less than the advertised sixteen (16) ounces of product. Your boss wants to solve the problem at hand and has asked you to investigate. You have your employees pull thirty (30) bottles off the line at random from all the shifts at the bottling plant. You ask your employees to measure the amount of soda there is in each bottle. Bottle Number | Ounces | Bottle Number | Ounces | Bottle Number | Ounces | 1 | 14.5 | 11 | 15 | 21 | 14.1 | 2 | 14.6 | 12 | 15.1 | 22 | 14.2 | 3 | 14.7 | 13 | 15 | 23 | 14 | 4 | 14.8 | 14 | 14.4 | 24 | 14.9 | 5 | 14.9 | 15 | 15.8 | 25 | 14.7 | 6 | 15.3 | 16 | 14 | 26 | 14.5 | 7 | 14.9 | 17 | 16 | 27 | 14.6 | 8 | 15.5 | 18 | 16.1 | 28 | 14.8 | 9 | 14.8 | 19 | 15.8 | 29 | 14.8 | 10 | 15.2 | 20 | 14.5 | 30 | 14.6 | Calculate the Mean, Median, and Standard Deviation for Ounces in the Bottles. As stated in Bluman, (2013), “the mean is found by adding the values of the data and dividing by the total number of values” (p. 114). In the data collected from the bottling company case study, the mean...
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...Case 19-1: Bennett Body Company Note: This case is unchanged from the Eleventh Edition. Approach This case contrasts a standard cost system with an actual job cost system, and thereby brings out several points about cost accounting, including: the purposes for which cost accounting data are used; the paperwork involved in cost accounting; the use of costs for pricing; the problem of controlling costs under the two types of systems; and the problem of the normal overhead rate. Students may have difficulty in seeing that: (1) in the Conley standard cost system, costs are not traceable to individual bodies or models, and therefore no comparison of actual and standard costs by models is possible; (2) the Conley system easily could be changed to permit comparison of actual and standard labor and material costs by models, but it is doubtful that such information would be useful for control; (3) the variances have no meaning unless the standard costs for each model are reasonable; (4) the overhead variance in Exhibit 1 is meaningless; and (5) the paperwork involved in the Conley system is less than that in the Bennett system. Comments on Questions (Numbered as in Mr. Bennett’s memorandum) It may be well to discuss the Bennett system first. The subject may be broken down into records of material, labor, and overhead cost, and the job-cost sheet. Enough hints are given in the case so that students should be able to visualize the contents of the documents needed to record the incurrence...
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...Case 19-1 Bennett Body Company 1. In response to the email of Paul Bennett: The Bennett system has a higher cost of paperwork because we are using the Job Order Costing and the Conley System uses process costing. Conley Corporation uses Process costing in accumulating cost of production. We are costing products based on per job order bases. Conley is costing their production on a per department basis because it has standard model design. Our products are based on costumer's specification, and therefore each product is unique. Process costing can not be used under our present set-up. Possible reasons for cost differences between actual and standard costs under Conley's system: a. Materials Price and Usage Differences b. Labor Rate Differences c. Labor Efficiency Difference d. Production Volume Difference Standard costs are usually developed from previous year's experiences and some adjustments from each department's managers. If our product's sales volume is seasonal in nature, it would be better to have our overhead allocation rate change to monthly from annually. If not, we could stick to annual overhead rate for simplicity of computation. Under our present production, it is preferable to stick with Job Order costing, unless we change our products to a more standard design (no customer specifications), and Process costing will not work under our system. 2. Since Bennett main operation concentrates on manufacturing customized...
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...Case 6-1 The Browning Manufacturing Company’s management team uses a projected budget in order to compare actual financial results to expected financial results. According to the management team, each department is dependent upon each other to provide estimates of future revenues and expenses. The departments consist of finance, sales, manufacturing and purchasing. The estimates are used to devise a projected profitable plan for the upcoming year. After each department supplied their estimates at the Browning Manufacturing Company, the accounting team would create a projected income statement, balance sheet, retained earnings statement, and a statement of cost of goods sold (Anthony, Hawkins, Merchant, 2011). Usually the company focuses on profitable operations but this time the management team wants to focus on the amount of cash at the end of the year and accomplish paying $350,000 of their notes payable. Once all cash outflow transactions are processed, management expects $150,000 of cash available in the ending cash account (Anthony, Hawkins, Merchant, 2011). The accounting team has prepared a projected income statement, balance sheet, statement of retained earnings, and statement of cost of goods sold (Appendix A, B, & C) for managements review. Management will to review principal differences between the actual results of 2009 against the projections of 2010. Then, management can utilize this information to access the strength of the 2010 projections, its ability...
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...Case 1: Capital Mortgage Insurance Company Overview This case is set in the late 1970’s and describes an acquisition attempt by Capital Mortgage Insurance of Corporate Transfer Services. CMI is a company that sells mortgage insurance to mortgage lenders and banks but executives at CMI want to grow into the real estate relocation industry. Corporate Transfer Services assists employees who have been transferred to a new city as they try to find a new home. Capital Mortgage Insurance Corporations goal is to acquire Corporate Transfer Services at the lowest cost. The president and vice president of CMI met with the owners of CTS many times. If CMI acquires CTS, it will provide them with an easy way into the relocation industry and a high potential for profit. This makes the acquisition appealing to CMI, regardless of the fact that financially, CTS has been struggling to break even. Corporate Transfer Services wants to be acquired, but is worried about their ownership levels after the acquisition. Analysis Capital Mortgage Insurance Company’s main interest is to expand their financial services capabilities and build a strong network that can rival Merrill Lynch. Growing at a 10-15% annual rate, the corporate relocation business was a very appealing market. CMI has to protect their close relationship with MetroNet, with which Elliott Burr sat on the board. MetroNet proposed and approved the acquisition attempt of CTI. Preservation of good relationships with the CTS...
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...Motorola was founded in 1928, and soon became widely known for its radios and other consumer electrical and electronic products. Motorola has achieved over$ 5.5 billion in sales, employed over 99,000 people and spent $411 million in research and development. By the 1960s, it sold semiconductors products, communications equipment, and components to consumers, industrial companies, and the military throughout the world. To exploit fully the growing demand for semicustom integrated circuits, Motorola organized the Application Specific Integrated Circuits (ASIC) Division as part of the Semiconductor Products in 1984. The controller of ASIC sensed that he and his staff could play a significant part in determining the success of this new business. That is, because ASIC division was competing in a new and dynamic market with unique requirements but it also was radically changing the way to deliver its product. These circumstances led the controller to reassess the most basic issues involved in designing a management control system, which are how, what, who, and for whom should it be measured. The managers of the new division realized that the semicustom integrated circuit business had different requirements for success. In this semicustom gate arrays market, the customers are involved in the middle of the development cycle. Thus, Motorola focused on its customers, rather than on its product. Customers such as DEC, Apple Computer, and Unisys competed in markets characterized by rapidly...
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...1. Determine the investigation you will do with regard to the physical infrastructure of the orchards, orchard shacks, and the cold storage building. After doing some detailed investigations of the physical infrastructure of the orchards, orchard shacks, and the cold storage building revealed some ideas that we can implement in the network design. The investigation also showed that wireless technology would be the best solution between the three areas. With that being said the orchard area would be the only problem we would need to find out how big the orchard area is so we can install access points so a good signal can all ways be delivered. Determining the distance will also aid in the network design on what cables like fiber optics or RJ cables, as well as the selection of technologies and devices to meet the design goals. The number of buildings should be determined and what equipment they should contain which types of network devices needed for this landscape. 2. Make a list of business goals for Harriet’s Fruit and Chocolate Company and determine the constraints that will affect these goals. Business goals for Harriet’s Fruit and Chocolate Company are to provide high quality products to customers. Also to provide immediate and real-time access to inventory data to aid in sales, to do this an upgrade logistics would have to take place which in turn everything would have to go digital, we would not be able to continue with the older mom and pop structure we have been...
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...ASSIGNMENT SHEET TUESDAY, JANUARY 17, 2012 CLASS 1– INTRODUCTION AND GOALS FOR THE SEMESTER A. CLASS LECTURE Review of Topics, Assignment Sheets, and Course Outline The Case Method - Rules for Classroom Discussion Instruction for the Formation of Study & Project Groups B. Professor/Student Introductions C. Readings from Course Packet: 1. Fin 394.4 Syllabus - Course Outline and Grading Policy 2. “Course Introduction” 3. Note to the Student: How to Study and Discuss Cases 4. “The Case Method” - Jeff Sandefer 5. “Classroom Discussion” - Jeff Sandefer 6. “Note on Study Groups” - Jeff Sandefer ASSIGNMENT: 1. PURCHASE THE COURSE PACKET 2. BRING YOUR RESUME TO THE NEXT CLASS 3. BROWSE THE CLASS BLACKBOARD SITE: (HTTP://COURSES.UTEXAS.EDU/) AND LOOK AT THE EXTERNAL LINKS AND COURSE DOCUMENTS POSTED. a. Case Exhibits b. Case Solutions c. Valuation Templates d. Valuation External Links e. Project Information ASSIGNMENT SHEET THURSDAY, JANUARY 19, 2012 CLASS 2 – WORK FOR MONEY OR MONEY WORK FOR YOU? A. Turn in Resume B. Form study groups (self-select 4-6 people with different education, concentration, work experience and cultural background). Send e-mail to the professor with...
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...* 1. RECRUITMENT & SELECTION Group Assignment (CASE ONE: TANGLEWOOD STORES AND STAFFING STRATEGY) * 2. Contents Introduction Staffing levels Staffing Quality Recommendation CASE 1: TANGLEWOOD STORES AND STAFFING STRATEGY * 3. Introduction CASE 1: TANGLEWOOD STORES AND STAFFING STRATEGY Tanglewood was originally founded in 1975 by two entrepreneurs and they are Tanner Emerson & Thurston Woods . Initially They were called originally as Tannerwood with only one store that sold outdoor clothing and equipment that they themselves designed * 4. Introduction CASE 1: TANGLEWOOD STORES AND STAFFING STRATEGY It was because of the unique merchandise (quality) and good customer service that won the heart of people, the business grew bigger In 1984 the two friends renamed the company to Tanglewood in 1984. Their business grew in the 90’s t0 243 stores in various parts of US, with Emerson being the CEO and Wood as the President. Regional Managers directly oversee day to day operations. * 5. Tanglewood’s Operating Environment CASE 1: TANGLEWOOD STORES AND STAFFING STRATEGY Competition and Industry This is a competitive and thriving industry in America, which provides jobs to 23 million people (approx.) and accounts to $3 million in annual sales . * 6. Tanglewood’s Operating Environment CASE 1: TANGLEWOOD STORES AND STAFFING STRATEGY Table 1: The ROR, ROA and ROI of Tanglewood which indicate corporate profitability (ROA) - efficiently managed its assets to revenue...
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...Case Application 1 : Maersk and Human Resource management Challenges in China 1. Why does human resource management represent one of the major challenges faced by foreign companies entering the Chinese market ? Answer : Human resource management represent one of the major challenges faced by foreign companies entering the Chinese market because the problem which are most important is a qualified manager to lead the operation. In Chinese market, it is the question that whether must use the expat manager from foreign country or use a local talent manager. This comes on the top of other common problems related to human resource management in China, which all western companies have the experienced in one way or another. This issues had been known for a long time, since the beginning of the Deng’s Open Door policy which in 1979 opened China to foreign companies direct investment. 2. What are the main issues expat managers generally face ? Answer: Main issues that expat managers generally face are culture conflict and language skill in complicated Chinese business environment. Chinese is one of the hardest language to learn. Even organizing a banquent can be daunting experience for someone not aquainted with the local culture. Besides that, expat manager who have a solid experience of the country and speak Mandarin is the such high demand that they are normally very expensive. Why don’t foreign companies simply...
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...1. Property of the company belongs to a) Company b) Share holders c) Members d) Promoters 2. Which company shares can be freely transferable 3. Private Company b) Public Company c) Both (a) & (b) d) None of the above 4. Minimum number of members in case of public company b) 1 b) 2 c) 5 d) 7 5. Minimum number of members in case of private company is c) 1 b) 2 c) 3 d) 6. Maximum no. of members in case of private company is d) 50 b) 100 c) 150 d) 200 7. Maximum no .of members in case of public company is 1) 0 b) unlimited c) 50 d) 100 8. How many months did the company can continue its business u/s 45 _______ e) 1 b) 2 c) 5 d) 6 9. If minimum subscription is not received application money should be refunded with in ______days 20 b) 25 c) 30 d) 10 10. Liability of a member in case of a private company is f) Limited b) Unlimited c) Both (a) or (b) d) None of the above 11. Maximum no. of persons in case of partnership banking business ______ g) 10 b) 20 c) 30 d) 5 12. Minimum paid up share capital in case of a private company is _______ h) 1 Lakh b) 2 Lakhs c) 3 Lakhs d) 4 Lakhs 13. Minimum paid up share capital in case of a public company is ________ i) 1 Lakh b) 3 Lakhs c) 5 Lakhs d) 7 Lakhs 14. Minimum no. of Directors in case of a public company is __________ j) 1 b) 2 c) 3 d) 4 15. Minimum no. of Directors in case of private company is _______ ...
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...STUDENT CASES to accompany Accounting & Auditing Research: Tools & Strategies, 7e NOTE: In addition to the in-chapter and end-of-chapter exercises which serve as short cases you will find the following short cases arranged by course title that can also be utilized as short cases that require the student to access the authoritative literature to address the issue presented in the case. Solutions to the cases below are available to instructors on the Weirich Accounting & Auditing Research 7e instructor website at www.wiley.com/college/weirich. Other excellent sources of longer and more detailed cases include the Deloitte Trueblood cases (www.deloitte.com/more/DTF/cases_subj.htm), as well as the AICPA cases (www.aicpa.org). Topical Index of Student Cases INTERMEDIATE ACCOUNTING Case 1: Reporting acquisition and repayment transactions in the Statement of Cash Flows Case 2: Recording a forfeited payment Case 3: Revenue and expense recognition associated extended warranties Case 4: Accounting for “due on demand” note payable Case 5: Purchase of a controlling interest with a greenmail premium Case 6: Revenue recognition in the construction industry Case 7: Accrual and measurement of interest payments Case 8: Recognition of an asset transfer when title has not yet been received Case 9: Capitalization of interest and property taxes on a construction project Case 10: Deferred compensation and life insurance policy recognition Case...
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...Contents Introduction of the Case of Foss v. Harbottle…………………………………………………………………….Pg. 2 Describe and explain the rule set out in Foss v Harbottle and identify the exceptions to the rule …………………………………………………………………………………..……Pg 3,4,5 & 6 Describe the remedies, if any, which are available for ‘minority’ shareholders who feel that they have been the victim of wrongdoing by those in a ‘majority’……….…………………...Pg 7 & 8 References………………………………………………………………………………………………………………….Pg 9 & 10 Introduction of the Case of Foss v. Harbottle The Victoria Park Company is a company had been established during September 1835. This company is to establish a residential area for the prosperous business and professional families to stay. This estate will be established to the east of Wilmslow Road. Richard Foss and Edward Starkie are the minority shareholders. A bill was lodged by 2 shareholders of the company that incorporated by Art of Parliament, on their own and the other shareholders’ behalf. In the case they claim that fraudulent transactions misapplying the company’s assets did by 3 bankruptcy directors, a solicitor, proprietor and architect, and take some unqualified people to put in board of director to make it full and a company without clerk or office, in this situation the proprietors has no rights to take out the property from the hand of defendant directors. Observations were made on this point of case is that the trust between the company and company promoters had arises. Void...
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...STUDENT CASES to accompany Accounting & Auditing Research: Tools & Strategies, 7e NOTE: In addition to the in-chapter and end-of-chapter exercises which serve as short cases you will find the following short cases arranged by course title that can also be utilized as short cases that require the student to access the authoritative literature to address the issue presented in the case. Solutions to the cases below are available to instructors on the Weirich Accounting & Auditing Research 7e instructor website at www.wiley.com/college/weirich. Other excellent sources of longer and more detailed cases include the Deloitte Trueblood cases (www.deloitte.com/more/DTF/cases_subj.htm), as well as the AICPA cases (www.aicpa.org). Topical Index of Student Cases INTERMEDIATE ACCOUNTING Case 1: Reporting acquisition and repayment transactions in the Statement of Cash Flows Case 2: Recording a forfeited payment Case 3: Revenue and expense recognition associated extended warranties Case 4: Accounting for “due on demand” note payable Case 5: Purchase of a controlling interest with a greenmail premium Case 6: Revenue recognition in the construction industry Case 7: Accrual and measurement of interest payments Case 8: Recognition of an asset transfer when title has not yet been received Case 9: Capitalization of interest and property taxes on a construction project Case 10: Deferred compensation and life insurance policy recognition Case...
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