...1 Assignment 4 External Financing http://homeworkfy.com/downloads/b6002-module-1-assignment-4-external-financing/ To Get this Tutorial Copy & Paste above URL Into Your Browser Hit Us Email for Any Inquiry at: Homeworkfy@gmail.com Visit our Site for More Tutorials: (http://homeworkfy.com/ ) Genesis Energy’s newly established operations management team decided to seek outside assistance in developing a long-term operating plan that also addresses the financial issues identified. A major consideration for Genesis Energy is assessing those short-term and long-term economic factors, which will greatly enhance the company’s ability to successfully transition to a viable international business. Grasping and correctly prioritizing these economic factors, supply and demand, interest rates, inflation, unemployment, and exchange rates are pivotal, thereby requiring expert guidance. Therefore, their first major decision was to hire a respected strategy-consulting firm, Sensible Essentials. After meeting with the client team, Sensible Essentials concluded that the operations management team would significantly benefit from a more in-depth understanding of the financial environment at Genesis Energy. This understanding needed to encompass not only sales, costs, and profitability forecast under the new strategic plan, but also the way expansion would highlight the need to manage working capital and cash flow in order to try to minimize the need for external financing. As the lead consultant...
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...unexpectedly, that effective stakeholder engagement and communication are challenging and essential to the success of their pay programs. Stakeholder engagement helps to create buy-in and initial acceptance of the TIF plan. It allows different voices and perspectives to be heard and recognized as new approaches to compensation develop. Communication provides the synergy to broaden buy-in and sustain support for the program. This paper describes the ways in which TIF grantees have approached stakeholder engagement. It is based on data from multiple sources, including TIF program monitoring reports, Center for Educator 1 For example, New Leaders for New Schools. Compensation Reform (CECR) technical assistance notes, grantees’ internal and external evaluations, and interviews with...
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...assumption is that each asset would have a useful life and a residual value at the end of its useful life. The straight line method would write off net cost of each asset over its useful life and estimated residual value. Each year the depreciated value would be the same. 4. Some of the reports include the Income Statement, Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity and Statement of Cash Flows. 5. The chairman of the board of directors ins Marcus C Blackmore Am. He has 4,479,278 fully paid ordinary shares. 6. There are several purposes of the external auditor report. The external audit performed by a third party and an independent organization and is suppose to provide a true and fair view. A requirement of the Corporation Act 2001 is the auditor independence with regards to the audit. External auditing must conduct its audit in accordance with specific laws and...
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...QUESTION 1 (a) The caller must in good manner, show respect to the CEO and has a talk with the CEO tell the CEO on your professional view that the sales transaction did not meet the revenue recognition criteria specified by GAAP., if they still want to make this kind of transpired transaction, company might get law sue by the bank. Caller also should not continue sign the commitment letter, because if that is a fraud, and she signed the letter, caller is liable to take responsibility about cheating the bank. (b) If the caller conceal her disagreement and continue working in the company, she might face legal liability in future. It is because she is the person who signs the commitment letter. (c) If she resigns immediately, it might affect her future career, other company will loss confident to hire her even banned. Besides that, she had signed some previous financial statement, if that found by the relevant parties, she is liable to face the legal responsibility. (d) Yes. She can refer to the MASB standard 9- Revenue, under the section 15 “sale of goods- revenue from the sale of goods should be recognized when the enterprise has transferred to the buyer the significant risks and rewards of ownership of the goods”. http://www.masb.org.my/images/stories/archive/PERS/!masb9.pdf In this case, the company recorded the revenue from sale transaction which did not occur, so she should remind the company. Question 2 Since she is the person who signs the commitment...
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...Regulations II. Features & Benefits a. Assessment of overall security b. Exposures that create the greatest risk c. Internal Controls III. The Compliance Audit Process d. Interviews and Reviews e. Preparation f. Procedural Component IV. Conclusion Compliance Auditing Compliance auditing determines whether a process or transaction has or has not followed applicable rules. If rules are violated, the auditor determines the cause and recommends ways to prevent future deviations. The rules being tested can be those created by the organization for itself through corporate by-laws, policies, plans, and procedures; can be those imposed on the organization through external laws and regulations; or can be those external standards that the organization has chosen to follow. In addition Compliance auditors gather evidence regarding fraudulent or abusive activity affecting governmental entities. Their audits are designed to detect and deter the misappropriation of public assets and to reduce future fraud risks. (Associates, 2003) Compliance auditors must have the skills to research issues effectively using authoritative materials, understand how to apply the knowledge gained to the circumstances being tested, and be able to explain to the organization what compliance means in day-today operations. Reaching a conclusion that an outcome complies or does not comply with a standard is not necessarily simple, especially in domains governed...
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...THE PREPARATION AND PRESENTATION OF FINANCIAL STATEMENT ARE REGULATED BY LAWS. REQUIRED: (1) LIST THESE LEGAL PROVISIONS. The constitutional and the regulatory framework of public sector accounting. Public sector accounting is governed by the following regulatory framework; such as: (a) Nigerian constitution: The 1999 constitution of the federal Republic of Nigeria Is one of the legal frameworks that regulate the receipts and pa;yments of public funds. (b) Audit Ordinance of 1956 or Act of 1956: section 13,sub- sections 1-3 mandate the accountant General of the Federation to finish the Auditor- general for the federation with the country’s financial statements. The Auditor- general shall within 60 days of the Accountant – General’s financial statements submit his report to each House of the National Assemble. (c) Finance (control & management) Act of 1958: This governs the management and operation of all government funds. It regulates the accounting system, the books of account to be kept and the procedures to be followed in the preparation of accounts and financial statements. (d) Financial Regulations: these are the accounting manual of the government ministries / Extra ministerial Departments which deals with financial and accounting matters. It set out the procedures and steps to be followed in treating most of government transctions. (e) Finance/ Treasury Circulars: These are administration tools which are used to amend the provisions...
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...Development Student Organization Financing Guidelines 2014 Edition I. Introduction a. Audit Environment Student organizations, just like any other organizations have basic financial needs necessary for them to operate and perform their functions. These financial needs are being provided by the members and the school (also referred to as the stakeholders), and it is the responsibility of each organization to make good use of available financial resources. As this financial responsibility of organizations to their stakeholders arises, they are required to establish a system of control that will ensure the integrity of all financial transactions. This financial integrity should then be completely and accurately captured in all financial records and reported periodically to the stakeholders. In essence, the system will be the organizations’ first line of defense against error, fraud, negligence, or dishonesty in arriving at the financial information. This system is aptly called the organizations’ internal control. However, it is not enough that organizations utilize their own internal control. There is a need to examine or review critically and systematically the organizations’ reports, documents, records, financial policies, and controls for the purpose of arriving at an objective conclusion regarding their accuracy, completeness, and reliability. This is called the external audit. Both the internal control and the external audit comprise the audit environment...
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...DIGITAL POINT INC : FRAUD CASE STUDY Digital Point, Inc. (DPI) is an international chain of stores specializing in renting copies of movies and video games to retail customers. DPI also sells new and used copies of these products, and offers “memberships” entitling members to unlimited use of DVDs or video games for one year (one DVD or game at a time). With over 7,000 stores worldwide (approximately 5,000 in the U.S. and 2,000 in 23 other countries), DPI is among the top two or three companies in the industry. Founded twenty years ago, it has been an audit client of your CPA firm for the past three years. For several years, the traditional movie and video game rental industry has been saturated, and recently has been declining by an average of 4% per year as measured by industry gross margins and by 6% per year as measured by industry profits. Lately, companies in the movie rental industry have been facing stiff competition on a number of fronts. First, competing companies such as Netflix offer internet-based subscription services, taking business away from traditional stores like DPI and forcing them to discontinue charging late fees to customers, a significant source of revenues. Second, companies such as Wal-Mart, Circuit City and Best Buy have been selling new copies of both newly-released and classic DVDs at rock-bottom prices, sometimes even at a loss, also taking business away from traditional stores like DPI. Finally, many customers have turned to video-on-demand...
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...Committees in enhancing the act of external audit so as to gratify stakeholders’ needs. In present years, Audit Committee (AC) has become to be one of the mainstays in Corporate Governance system in British public companies. It plays a vital act by bestowing critical oversight of risk management in a firm across monitoring the integrity of its financial statements in conjunction to company’s financial performance. According to the Combined Code on Corporate Governance, all listed company are needed to set up an AC. According Millichamp et al (2008), it should comprise of no less than three non-executive managers who are independent directors. The members should expert in certain areas in company, however should have no on-site managing the management of the business. Besides, members should state their duties and powers clearly in written form. External audits normally furnish non-audit services across the year and rely on the inner control. They furnish reasonable assurance concerning the effectiveness of internal controls above financial describing across a collection of evidence. They express their judgments if the financial statements are fairly gave by the association and additionally untitled make sure the accounting records are well upheld in a proper way. They are responsible to the stockholders in a firm in addition to reveal the annual financial reports by collecting the facts so as to attain reasonable assurance. In our society today, external audits will even bring up helpful...
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...Hogan, C.E., Z. Rezaee, R.A. Riley Jr., and U.K. Velury (2008). Financial Statement Fraud: Insights from the Academic Literature. Auditing: A Journal of Practice & Theory, 27 (2): 231-252. 1. There is a significant amount of literature on the characteristics of fraud firms, providing support for the fraud triangle classifications and the list of “red flags” used in both SAS No. 82 and SAS No. 99. a. Pressures to meet analysts’ forecasts, rapid growth, compensation incentives, stock options, the need for financing, and poor performance increase the likelihood of fraudulent financial reporting. b. Effective corporate governance, including the board of directors, audit committee, and internal controls, and also the external auditor, play key roles in reducing the opportunity to commit fraud. c. Research is limited in the attitudes and rationalizations area. Based on the research, the focus areas of SAS No. 99 incentives, opportunity, and rationalization are grounded in empirical evidence. In that regard, the efforts of the profession to emphasize management override are warranted. 2. Evidence on the usefulness of checklists as a fraud detection tool is mixed. While there is some research that supports the use of checklists as a decision tool, there is more evidence that suggests the use of checklists is dysfunctional in that auditors fail to expand their thinking beyond the checklist. 3. Research supports a need by auditors to align management incentives to the types of risks that...
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...nature of Enron made the company face greater risks, and that pressure led them to adopt aggressive financial reporting practice, this model increased the likelihood of material misstatements. It enabled the management to overstate its revenue while not disclosing the actual value of its debt. The risk of fraud by management was high. The transactions involving SPE's essentially involved Enron receiving borrowed funds that were shown as revenue without recording liabilities. Also, the amount of misstatements was huge as Enron had hundreds of such SPE's. Complex financial derivative transactions were used to hide enormous amounts of debt. Huge increases in borrowing were made to look like hedges for commodity trades rather than new debt financing. The network of SPE's along with complicated speculations and hedges kept an enormous amount of debt off the balance sheet. The accounting standards were inadequate in providing for the proper accounting of these transactions. The...
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...CASE STUDY – FINANCIAL REPORT ANALYSIS Three Executives of a well-known multi-national company decided to form a new company, named New Star Company Limited in 1974. These three executives were becoming close to their retirement age. Pifco-Zen Chen Company Limited, the company that they worked for had been in business for the last 80 years. It was their previous employer’s policy to retire the executives with a “golden hand-shake” worth approximately US$120,000 each. The three executives occupied the following position with Pifco-Zen Chen Company Limited, (1) Finance Manager – Mr. Zu Chang, (2) Sales & Marketing Manager, Mr. Lim Lam, and (3) Risk Management Manager, Mr. Shu Ching. In their previous position with Pifco-Zen Chen Company Limited, they were regarded as the most respected executives because the company made significant progress in terms of organic growth and diversification. The Chairman of the Board of Directors, Dr. Wing Wan used to call them “the three wise men”. Pifco-Zen Chen Company Limited main business activities were the manufacturing of “twisties” and acted as wholesale distributor of a special drink called “Wysalt”. The drink is full of calcium and protein and it is very popular in the South East Asia. Each year’s Annual General Meeting of Pifco-Zen Chen Company Limited’s gross income and net profit before taxation increased by 10%, while its main competitor’s performance was declining at an alarming rate. Chairman Wan always wanted to find out what is...
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...CASE STUDY – FINANCIAL REPORT ANALYSIS Three Executives of a well-known multi-national company decided to form a new company, named New Star Company Limited in 1974. These three executives were becoming close to their retirement age. Pifco-Zen Chen Company Limited, the company that they worked for had been in business for the last 80 years. It was their previous employer’s policy to retire the executives with a “golden hand-shake” worth approximately US$120,000 each. The three executives occupied the following position with Pifco-Zen Chen Company Limited, (1) Finance Manager – Mr. Zu Chang, (2) Sales & Marketing Manager, Mr. Lim Lam, and (3) Risk Management Manager, Mr. Shu Ching. In their previous position with Pifco-Zen Chen Company Limited, they were regarded as the most respected executives because the company made significant progress in terms of organic growth and diversification. The Chairman of the Board of Directors, Dr. Wing Wan used to call them “the three wise men”. Pifco-Zen Chen Company Limited main business activities were the manufacturing of “twisties” and acted as wholesale distributor of a special drink called “Wysalt”. The drink is full of calcium and protein and it is very popular in the South East Asia. Each year’s Annual General Meeting of Pifco-Zen Chen Company Limited’s gross income and net profit before taxation increased by 10%, while its main competitor’s performance was declining at an alarming rate. Chairman Wan always wanted to find out what is...
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...CASE STUDY – FINANCIAL REPORT ANALYSIS Three Executives of a well-known multi-national company decided to form a new company, named New Star Company Limited in 1974. These three executives were becoming close to their retirement age. Pifco-Zen Chen Company Limited, the company that they worked for had been in business for the last 80 years. It was their previous employer’s policy to retire the executives with a “golden hand-shake” worth approximately US$120,000 each. The three executives occupied the following position with Pifco-Zen Chen Company Limited, (1) Finance Manager – Mr. Zu Chang, (2) Sales & Marketing Manager, Mr. Lim Lam, and (3) Risk Management Manager, Mr. Shu Ching. In their previous position with Pifco-Zen Chen Company Limited, they were regarded as the most respected executives because the company made significant progress in terms of organic growth and diversification. The Chairman of the Board of Directors, Dr. Wing Wan used to call them “the three wise men”. Pifco-Zen Chen Company Limited main business activities were the manufacturing of “twisties” and acted as wholesale distributor of a special drink called “Wysalt”. The drink is full of calcium and protein and it is very popular in the South East Asia. Each year’s Annual General Meeting of Pifco-Zen Chen Company Limited’s gross income and net profit before taxation increased by 10%, while its main competitor’s performance was declining at an alarming rate. Chairman Wan always wanted to find out...
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... 1. INTRODUCTION 1.1 CASE SUMMARY Delima Enterprise was founded in 1981 by En Zayed. The main business are trading and supplying related products including manpower supplies to the oil and gas industries. The enterprise was incorporated in 2004 as Delima Enterprise Sdn Bhd with En. Zayed and his wife, Puan Hashimah as the controlling directors and two principal shareholders. This case is about Delima Enterprise which wants to make banking facilities from Malayan Banking Berhad and CIMB Bank Berhad. The banks required company’s Audited Financial Statements for the last two years. From the requirement, Encik Zayed and Puan Hashimah realised that the company did not performed any statutory audit before. So, they engaged with the external Auditor Aziz & Co. (Chartered Accountant). The auditor need to performed statutory audit for the period 2003 to 2006. There are some mistakes happened during the last two years founded by the auditors. To resolve several issues, the auditors need to qualify the Financial Statements. However, Encik Zayed and Puan Hashimah tried to negotiate with the auditor to not qualify the Financial Statements. The auditor was not agreeing with the Encik Zayed negotiation and he planned to terminate the auditor appointment. Encik Zayed also want to appoint new “friendly party” auditor to make the audit reports. Besides they do not familiar with audit, they also did not familiar with Accounting Standards and the provisions of the Companies Act 1965...
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