...MILLERSBURG — “The Holmes County Fair never has to worry about another flood again.” So proclaimed Holmes County Fair Board President Kerry Taylor at Monday evening's opening ceremony for the Holmes County Fair at Harvest Ridge. Taylor was welcomed to the stage by event host Mark Lonsinger, who brought the standing-room-only crowd to its feet. In the 12 years it has taken for the dream to come to life, Lonsinger said, Taylor “has worked tirelessly, day and night, to bring us to where were are today,” overcoming every obstacle and rallying those around him to make possible the climb to the top of a mountain. Taylor, he said, is the one person who could tell the whole story of the fair and “what it took to get there.” He is the “personification of the dream.” It's a dream, Taylor said that dates back to 2004, when a flash flood ravaged the old grounds eight weeks prior to the start of the fair. It was then discussions began to move toward a solution to eliminate the issues … although there were a couple more floods to endure in the years to come. And, recalling a moving closing ceremony held 360 days ago, Taylor said, he was overwhelmed by the nostalgic stories and memories of the fair, but the excitement of all at the prospect of making new memories at the new fair. But, it's not the grounds that make the fair. Like a church, Taylor said, it's the people who make the fair. And, “all of those new memories are starting today.” He credited the community for making the effort possible...
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...Chemical Imbalance. It was a warm sunny summer day. James walked smiling down the street but slightly nervous as he was running a little late for an encounter with his blind date Rose, which he had looked forward to with anticipation. He had been set up by his good friends to go on a blind date. They thought it was about time, that he came back on the market after the breakup with his girlfriend, which he had been in a long-term relationship with. He wanted to look as good as possible, of course, as he wanted to make a good impression on his blind date, who he had been told was a very beautiful woman. Therefore, he was wearing his favorite light yellow short-sleeved button up shirt tucked down his shorts and sneakers. He had also shaved himself and put on his Old Spice aftershave like his father always had used. They had decided to meet at a small contemporary café downtown over lunch. When he came inside, he spotted her instantly at the table near the window. Her beautiful features enlightened the whole room, and it was hard not to overlook them. They instantly caught each other’s eyes and she waved him over. The first thing she thought when she saw him was “Oh my God, what am I doing on a blind date with this guy. He is not at all what I expected.” After a few thoughts, she decided that she would give him a chance, as there might would be more to him than she could tell by the first glance and she had promised her friends to give him a chance no matter what. He was...
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...comprehensively as possible. Reference to Auditing Standards, your textbook, and other relevant authoritative sources is expected where appropriate. Even where some of the questions are quite general, try as much as possible to relate your answer to the case. 1. Some of the members of Phar-Mor's financial management team were former auditors for Coopers & Lybrand. (a) Why would a company want to hire a member of its external audit team? (3pts) (b) If the client has hired former auditors, would this affect the independence of the existing external auditors? Explain. (3pts) (c) How did the Sarbanes-Oxley Act of 2002 and related rulings by the PCAOB, SEC or AICPA affect a public company's ability to hire members of its external audit team? (3pts) 2 (a) What factors in the auditor-client relationship can put the client in a more powerful position than the auditor? (3pts) (b) What measures has and/or can the profession take to reduce the potential consequences of this power imbalance? (3pts) (c) Do you believe that in this Phar-Mor Case there was some power imbalance between the Coopers and Phar-Mor? Explain. (3pts) 3. (a) Is it appropriate for auditors to trust executives of a client? Explain (3pts) (b) Identify 3 instances in the case where auditors apparently trusted the responses or explanations they were given by the client. For each instance, comment on whether or not it was appropriate to trust the client and if not, what the auditor could have done. (6pts) (c) Do...
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...comprehensively as possible. Reference to Auditing Standards, your textbook, and other relevant authoritative sources is expected where appropriate. Even where some of the questions are quite general, try as much as possible to relate your answer to the case. 1. Some of the members of Phar-Mor's financial management team were former auditors for Coopers & Lybrand. (a) Why would a company want to hire a member of its external audit team? (3pts) (b) If the client has hired former auditors, would this affect the independence of the existing external auditors? Explain. (3pts) (c) How did the Sarbanes-Oxley Act of 2002 and related rulings by the PCAOB, SEC or AICPA affect a public company's ability to hire members of its external audit team? (3pts) 2 (a) What factors in the auditor-client relationship can put the client in a more powerful position than the auditor? (3pts) (b) What measures has and/or can the profession take to reduce the potential consequences of this power imbalance? (3pts) (c) Do you believe that in this Phar-Mor Case there was some power imbalance between the Coopers and Phar-Mor? Explain. (3pts) 3. (a) Is it appropriate for auditors to trust executives of a client? Explain (3pts) (b) Identify 3 instances in the case where auditors apparently trusted the responses or explanations they were given by the client. For each instance, comment on whether or not it was appropriate to trust the client and if not, what the auditor could have done. (6pts) (c) Do...
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...relate your answer to the case. 1. Some of the members of Phar-Mor's financial management team were former auditors for Coopers & Lybrand. (a) Why would a company want to hire a member of its external audit team? (3pts) (b) If the client has hired former auditors, would this affect the independence of the existing external auditors? Explain. (3pts) (c) How did the Sarbanes-Oxley Act of 2002 and related rulings by the PCAOB, SEC or AICPA affect a public company's ability to hire members of its external audit team? (3pts) 2 (a) What factors in the auditor-client relationship can put the client in a more powerful position than the auditor? (3pts) A) A client can be put in a more powerful position than the auditor in an auditor-client relationship if the auditor is trying to sell the client additional services. When an auditor is trying to preserve the relationship with the client in order to get more business revenue, this will ultimately put the client in a more powerful position than the auditor. That is why there needs to be complete independence from the audit team when engaging with a client. (b) What measures has and/or can the profession take to reduce the potential consequences of this power imbalance? (3pts) B) Since the Sarbanes Oxley Act of 2002, external auditors are prohibited from providing...
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...PSYCHOLOGY REVISION Eating behaviour * Attitudes to food and eating behaviour * Explanations for the success and failure of dieting * Neural mechanisms in eating behaviour Cognitive development * Paget’s theory of cognitive development * Vygotsky’s theory of cognitive development * Applications of cognitive developments theories to education Relationships * The formation of romantic relationships * The maintenance of romantic relationships * The breakdown of relationships * Sexual selection * Sex differences in parental investment * The influence of childhood on adult relationships * The influence of culture on romantic relationships Discuss attitudes to food and/or eating behaviour (24 marks) Social learning theory emphasises the impact that observing people has on our attitudes and behaviour. As children's’ parents usually provide food for them, it seems obvious that parental attitudes to food will affect their children's attitudes to them. Children also learn what to eat by watching their parents. This can be explained by social learning theory. This occurs when children observe their parents eating. In this sense, the parents act as eating role models. Observing parents getting rewarded by enjoying eating certain foods, the children learn to imitate these food preferences as they expect to receive similar rewards by doing so. This theory would therefore argue that children should show similar preferences...
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...testing effects, and instrumentation to name a few. The time to be concerned with internal validity is in the design phase when careful consideration needs to be used when which variable will be observed and recorded and this is the time to identify any rival behaviors because after he intervention is ran it is too late. Other behavior issues could surface with Steve and he may transfer his behavior to another setting that would affect external validity. Sometimes when increasing internal validity it may decrease external validity. Uncontrolled variability can be reduced only if you identify its sources. The first step in identifying these uncontrolled variables are to graph the data and look for uncontrolled variables in the baseline. These will be evident if the data points on the graph show moderate to high levels of instability across observation periods. If the observed variation is within acceptable limits then you accept the observed effects as reliable. To establish external validity intrasubject replication must occur. The threat to external...
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...Government regulated monopoly GAAP General Standards 1. Adequate training and proficiency 2. Independence in mental attitude 3. Due professional care Standards of Field Work Proper Planning and supervision Understanding of the entity Sufficient appropriate evidence Standards of Reporting Statements prepared in accordance with GAAP Circumstances when GAAP not consistently followed Adequacy of disclosures Expression of opinion on financial statements *Test* Table 5.1 Definitions And broad broad stuff Can accept a gift from a client as long as its no more than “token” or the amount the firm gives you You can indirectly own stock in an auditing client if its immaterial to your net worth You cannot be paid in stock Because we don’t see the audit as one event, its not a series of events even though that looks like it. Because once you have the client you usually have it for a good amount of time. “The professional engagement period begins when the registered public accounting firm either signs an initial engagement letter (or other agreement to review or audit a client’s financial statements) or begins audit, review, or attest procedures whichever is earlier: and (B) the professional engagement period ends when the audit client or the registered public accounting firm notifies the commission that the client is no longer that firm’s audit client. You might be able to write a contract that can say the audit engagement is only a year and you might get...
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...cost-effective and time-efficient manner. They are also responsible for the day-to-day operation of the organization, including managing committees and staff and developing business plans in collaboration with the board for the future of the organization. They shall make reports on a regular basis – quarterly, semiannually, or annually. Auditors might affect the corporate governance of an institution by overseeing management activities in managing credit, market, liquidity operational, legal and other risk of the corporation and they shall assist the board in the performance of its oversight responsibility for the financial reporting process. How can the firm’s external institution affect the corporate governance of an institution? The external institutions of corporate governance include the government, markets, external auditors and industry. Government makes policies that should be followed by institutions. These policies shall be the guide of the institution in attaining better corporate governance. They make instructions and guides the institution on how it should improve its operation. It includes investments and production. Its negative impact is when they make certain additional collections and penalties even though it is not needed to be...
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...Acct 4080 Ocean Manufacturing Case 1. 1) Obtain and review financial information about the prospective client: annual reports, interim statements, registrations statements, Form 10-k’s, and reports to regulatory agencies. 2) Detailed criminal background checks of senior managers. 3) Evaluate the public accounting firm’s independence with regard to prospective clients. 4) Inquire of the prospective clients’ bankers, legal counsel, underwriters, analysts, or other persons who do business with the entity for information about the entity and its management. 5) Consider the need for individuals possessing special skills or knowledge to complete the audit (e.g., IT auditor, valuations specialist, industry specialist) 2. Overall, after calculating a few of Ocean Manufacturing ratios and comparing them with the industry, the company’s figures are not performing up to others in the industry. ROE = NI/Stockholder Equity (2011,2010)= 8.9% and 7.1% ROA = NI/Assets= 4.5% . 3.8% Both return on equity and assets are lower than industry ratios but are improving. Accounts Rec Turnover—could not calculate without % of credit sales from cash sales. Profit Margin = Operating income/ Sales(rev) = 5.5%, 6.0% PM are also low compared to the industry average. 3. There are a few non-financial items the company should consider. a) The VP of finance was charged with a misdemeanor related to illegal gambling. Raises questions about the tone at the top and the integrity...
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...Program/initiative as listed in YPPB 2013 Strategic Plan (file YPPB 2013 Plan v1.0.ppt – slide 8-10). The relevant department must complete the items below for each program/initiative. Program/Initiative | Corporate Social Responsibility | Department | Corporate Services | Brief Description | To reach out to more to the public and extend assistance and at the same time introduce branding Yayasan further | Target Launch Date | Jan 13/Mar13/Dec13 | Duration | 1 Day Per Event | | Program Objective | Objective must be measurable (target achievement) and can be basis for KPIs 1. To expend CSR initiative for YPPB every quarter | Target Participants / Group | Target No. of Pax | 20-30 (YPPB Staff & Volunteers) | 1. For the Hereafter – Aid to Surau/Musolla/Madrasah outside KL 2. Clean & Go – Community service at nursing home/pet shelter 3. Childrens Day 4. Buka Sekolah Drive – Orphanage/Children Single Mother Group/Children from Underprivileged background | Activities | Duration | List of activities to be carried out during the program/initiative in chronological order including decision required 1. For the Hereafter – Upgrade of amenities (carpets/curtains/abulation area etc) 2. Clean & Go – Gotong-royong/mural painting/recreational area 3. Childrens Day 4. Buka Sekolah Drive – School registration fee and equipment to 100 Primary and Secondary School kids. | 1 Day1-2 Days1 Day1 Day | Potential Partner / Vendor | Scope of...
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...Case Number: 3.1 Date: 09/02/2013 Case Requirements: [1] Brent’s alternatives include following the audit plan and reporting the time accurately, even if the time needed exceeds 35 hours. The positives to following the plan and reporting time spent accurately include doing his duty by adhering to the audit plan and ensuring that this years and future audits are conducted with realistic expectations as to the time and budget needed. A negative to this alternative is the damage that will ensue with his supervisor, the damage to his reputation within the firm and possible damage with the client when the audit comes in over budget. Brent could do as John says and only report 35 hours to complete payables even if the actual hours exceed 35 hours. He will enhance his relationship with his supervisor and within the firm while doing a good job for the client by following the audit plan. Unfortunately, he will likely cause further damage with his wife and increase his stress level. Furthermore, he’ll also be dooming audit teams in subsequent years to unrealistic expectations. Finally, he could deviate from the audit plan and reduce the number of invoices he examines so he is assured to finish within the 35 hours allotted. By deviating from the plan he will enhance his reputation with his supervisor and within the firm. The client will end up happy; however, if the audit of payables does not catch a material misstatement there good be negative consequences for the firm and...
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...The Sarbanes-Oxley Act (SOX) was the result of innumerable corporate scandals such as Enron, WorldCom and Tyco. These companies were misrepresenting their financial reporting to investors and stakeholders to make themselves look more financially stable when in reality they were not. This misrepresentation resulted in huge financial losses and the mistrust of investors in the market. In order to better control financial reporting and restore investors trust, the SOX act was passed. Sarbanes-Oxley aims to enhance corporate governance and strengthen corporate accountability. It does that by: • formalizing and strengthening internal checks and balances within corporations • instituting various new levels of control and sign-off designed to • ensure that financial reporting exercises full disclosure • Corporate governance is transacted with full transparency. (Sarbanes-Oxley Essential Information) The Sarbanes-Oxley Act implemented new standards for financial reporting accountability in a way that CEOS could not pass on the blame to others. They cannot hide behind the “I was not aware of the company’s financial issues “reason anymore. Executives are now held responsible for any financial misrepresentation in their companies’ reporting. They are also held accountable for the design and implementation of new internal control to validate their financial records. Thus, they are responsible of making sure that an internal control report as well as an internal control assessment...
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...Accounting Fraud at WorldCom 1) What are the pressures that lead executives and managers to “cook the books?” After the rapid evolution of the telecommunication industry in the 1990s, WorldCom shifted its strategy to focus on building revenues and acquiring capacity sufficient to handle expected growth. Their biggest goal was to be the No. 1 stock on Wall Street rather than capturing the market share. As a result, their Expense-to-Revenue (E/R) Ratio was their measurement for their main objective (increase revenues and become the No. 1 stock on Wall Street). Due to heightened competition, overcapacity and the reduced demand for telecommunication services at the onset of the economic recession and the aftermath of the dot-com bubble collapse, the telecommunication industry conditions began to deteriorate. Prices were falling and WorldCom had no option but to cut their prices as well. This action placed severe pressure on WorldCom’s most important measurement, the E/R ratio. The E/R ratio was being affected due to revenue and pricing pressures while the committed line cost was still the same. 2) Is there a boundary between earnings management and fraudulent reporting? If so, what is it? “Earnings Management is recognized as attempts by management to influence or manipulate reported earnings by using specific accounting methods (or changing methods), recognizing one-time non-recurring items, deferring or accelerating expense or revenue transactions, or using other...
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...First of all, line costs are the amounts that WorldCom paid other companies to be able to use their communication networks for their customers and it included access fees and transport charges for messages. The line costs are an expense and instead of reporting them as an expense at the time, they chose to hold off on paying them and adding them in as an expense so that it would look as though WorldCom was earning more than they really were. The first solution should have been to relook at the financial statements of WorldCom from an ethical standpoint. Instead of ignoring expenses or changing expenses into assets and assets into expenses, WorldCom should have followed the guidelines of the Generally Accepted Accounting Practices and the SEC and followed the accrual method for their financial statements. If Scott Sullivan would have followed the rules of the GAAP and the SEC, WorldCom could possibly have gotten themselves out their financial hole rather than making it larger. Since that did not happen the internal auditors are considered to be the first line of defense against accounting errors and fraud within a company. The treatment of those line costs was found by Cynthia Cooper who was WorldCom’s internal auditor. It was brought to the attention of Scott Sullivan (WorldCom’s CFO) and they wanted him to explain why they had treated their line costs as capital expenditures. Now, the purpose of the United States securities law is to help protect all investors in a company...
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