...Importance of Separation of Duties Student CMGT/430 Date Professor The Importance of Separation of Duties Introduction Riordan Manufacturing is one of the industry leaders in the field of plastic molding injection. The company headquarters office is in San Jose, California and has three other plants, including one international location. The list of locations includes Albany, Georgia, Pontiac, Michigan and Hangzhou, China. The San Jose, California, location serves as the company’s headquarters and the home of their research and development. The Albany, Georgia, plant produces beverage containers. The Pontiac, Michigan, location produces custom plastic parts. The international location in Hangzhou, China, produces custom plastic fan parts. Riordan employs 550 people and have projected annual earnings of $46 million. The purpose of this proposal, submitted by Smith Consulting, is to advise Riordan Manufacturing on the best practice to secure the company network after evaluating the company network and what steps are necessary to set forth enterprise security policies via segregating duties of employees by role assignments. Minimizing Risk The goal of any company should be to successfully minimize their risk and optimize their profitability. To accomplishing this progress is to examine their current network for shortfalls that allow security breaches, theft by client or employee and to minimized possible mistakes...
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...Science Technology Company Financial Projections, 1985 – 1989 Criticisms 1. No benchmark. 2. The markets to be exploited are not specified. 3. The 30% annual growth rate projection is unrealistic. First, the average growth per year of STC, as shown by the table below, is only 12% — a far cry from the 30% annual growth rate projection. Second, the division managers or STC did not provide which product lines will produce the estimated increase. Growth Percentage (per year) |Year |Percentage | |1980 - 1981 |7% | |1981 – 1982 |11% | |1982 – 1983 |20% | |1983 – 1984 |10% | |Average growth = 12% | 4. The estimated net profit from $23 million to $61 million is unfeasible. First, the increase between $23 million...
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...Worksheet for You Decide Name _JANICE VALDEZ Course Code _AC555ON_Grade ___/ Date 4/15/_2012_ Questions: Q1: Discuss how the SEC has influence (if any) over the audit of Smackey Dog Foods, Inc. Solution: The Securities and Exchange Commission (SEC), an agency of the federal government, assists in providing investors with reliable information upon which to make investment decisions. The Securities Act of 1933 requires most companies planning to issue new securities to the public to submit a registration statement to the SEC for approval. The Securities Exchange Act of 1934 requires public companies and others to file detailed annual reports with the commission. SEC examines these statements for completeness and adequacy before permitting the company to sell its securities through the securities exchanges. SEC requires that financial statements be accompanied by the opinion of an independent public accountant, which is a part of a registration statement and subsequent reports. Since Smackey Dog Foods, Inc. is not a public company, there is no direct influence of SEC. However, SEC’s rules establish the guidelines of GAAP and personal conduct for Smackey Dog Foods, Inc. (Auditing and Assurances Services, 13th Edition. Pearson Learning Solutions p. 30). <vbk:9781256083337#outline(6.7)> Q2: Discuss the essential activities involved in the initial planning of an audit. How do these all specifically to the Smackey Dog Food client? Solution: 1....
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...How does the sales growth rates in recent years compare with the growth in inventory and accounts receivable? What might explain why these rates are similar or different? In the last financial year, preliminary reports indicate that the company managed to generate $42.6 Million compared to the previous year where it generated $35.1 Million reporting an increase of 21.3% in revenue. Inventory grew by 16.9% and account receivable grew by 40.1% from 2005 to 2006. Ceres is a service company and they carry fewer amounts of inventory compared to a typical manufacturing company. This is an explanation for the lower percentage increase between revenue and inventory. The percentage difference between account receivable and sale revenue is about 20%, this shows that Ceres Company has been very effective in collecting funds from debtors. Additionally, it can also be explained that debts from prior periods have also been collected. What have been the key factors in the company’s growth? The Ceres Gardening Company has been exceptional in many respects. At the outset, it is imperative to acknowledge its founders vision: It is the most profitable business in the organic farming sector and has grown successfully for the last 25 years it has been in operation. It began with a simple vision and mission of transforming lawns and home gardens into independent nurseries, gardens and immense farms in Northern California area and is expanding its business across United States quite rapidly...
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...1. How well is Jones Electrical Distribution performing? What must Jones do well to succeed? Jones Electrical is performing well. The company is not a smaller company that had a net income of around $30,000 with net sales of around $2.4 million. Although the company is not to large they have continued to have growth year after year. Recent forecasts show sales might begin to slow down. The success of the company will depend on doing what the company is doing currently since they have continued to grow. Selling electrical devices is an extremely competitive market. The company has been able to build up high sales volume through cheaper pricing than its competitors and through a strong sales force. The company has also been able to keep prices down by maintaining a strict budget with tight control over operating expenses, including paying its sales team on commission and keeping overhead low. Financing is another key in a business and is a large factor that will determine the success of Jones Electrical is their financing. Jones Electrical needs to take out larger loans in order to build up inventory and increase sales. Also by taking loans the company is able to take advantage of the 2% purchase discounts that its manufacturers provide. The company’s financials show that with an increase in its line of credit the more sales it has, resulting in growth and a higher net income. 2. Why does a business that has a profit of $30,000 per year need a bank loan...
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...LODGING MIDTERM: •The Tourism Industry – All businesses that cater to the traveling public •Full-Service Hotel – A lodging property that offers a complete food and beverage service. •Limited-Service Hotel – A lodging property that offers no or very limited food services; sometimes a complimentary breakfast is served, but there is no table service restaurant. Classification of Lodging Properties •Location •Price •Size Location • The vast majority of all lodging properties (75% of properties and 61% of rooms) are in suburban or highway locations. • The center city (urban), airport, and destination (resort) properties comprise a relative small percentage of lodging properties and room inventory in the United States. Terminology Revenue – Money the hotel collects from guests for the use of rooms or from the purchase of hotel goods and services. Brand – The name of the hotel chain. Sometimes referred to as a “flag”. Franchisor – Those who manage the brand and sell the right to use the brand name. Franchisee – Those who own the hotel and buy the right to use the brand name for a fixed period of time and at an agreed-upon price. Hotel Terminology Data Mining – Using technology to analyze guest (and other) related data to make better marketing decisions. Yield (Revenue) Management – Demand forecasting systems designed to maximize revenue by holding rates high during times of high guest room demand and by decreasing room rates during times of lower guest room...
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...Case Study 1: And the Fraud Continues Forensic Accounting July 22, 2012 Abstract This case represents features of organized crime, occupational fraud and abuse. Most of these crimes involve many individuals and organizations as well as management and/or co-workers that are in a lot of social and financial pressures. Some of the crimes related with organize crime will be money laundering, mail and wire fraud, conspiracy and racketeering. With an internal control weakness employees would always look for opportunities to commit fraud or use company assets without permission. Within this case, we will see multiples internal control weaknesses that allowed Pavlo to perpetrate the fraud and how he used the tricks to mask the whole scam. We also are going to think on what was Wanserski position when Pavlo was performing the fraud. We will explore the investigation process and what type of procedures the auditor/investigator needs to follow in order to gather all the evidence. We will have the opportunity as readers to determine if MCI also had a fault by permitting or putting the pressure on his employees to comply with some guidelines instead of looking for ways to help employees to improve their work areas. Internal control is the method intended to ensure dependable financial reporting, effective and efficient department operations, and business compliance with related laws and regulations. Not having an effective internal control process will allow fraudsters like...
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...Question 1 Listing on a stock exchange might be highly desirable for a company, but there are a number of requirements, conditions and costs associated with becoming a publicly listed corporation. a) Discuss the ASX profit test and asset test requirements. b) Analyse the advantages and costs that are incurred when a company becomes a publicly listed corporation. a) To meet the profit test requirements of admission, an entity must satisfy each of the following conditions: * The entity must be a going concern, or the successor of a going concern. * The entity must have been engaged in the same principal business activity for the last three full financial years. * The entity must provide audited financial statements for the last three full financial years. The statements must be accompanied by audit reports, which must not be qualified with regard to the entity’s capacity to continue as a going concern, or satisfy the profit levels required. * The entity’s aggregated profit from continuing operations for the last three full financial years must have been at least $1 million. * The entity’s consolidated profit from continuing operations for the twelve months to a date no more than two months before the date the entity applied for admission must exceed $400 000. * The entity must give the ASX a statement from all directors (in the case of a trust, all directors of the responsible entity) confirming that they have made inquiries and nothing has come...
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...Chapter 1: Introduction Industrial training (BIT 3034) is a compulsory subject for all students in Multimedia University which to help the students be confidently prepared and move their steps into real working environment before their graduation. In addition, it is also to help students to have the future opportunity of employment after they graduate. Exposing students to join companies as trainee is to cultivate them on adapting the real-working life. Students will be reviewed by both the company supervisor and faculty supervisor during the industrial training period. Students will be guided by company supervisor, who play an important role in leading the students in completing their training period. Students will gain a lot of experiences and skills throughout the industrial training period. All these valuable experience and skills may not be able to obtain during lectures and tutorials The skills may include presentation, communication, technological as well as disciplinary. During my Bachelor Degree course in Multimedia University, I compulsory to take Industrial training during the last semester of second year in my university life. I was given the chance to complete my industrial training in Golden Palm Tree Resort & Spa Sdn Bhd. My training period took me twelve weeks to complete, which started from 20th February 2012 and ended at 12nd May 2012. The main purpose of this internship report is to record down what I have learned during my training period. This report...
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...Paragraph 1 Dear Mr. Anthony Brown I would like to apply for the job that is posted on your website. I understand that you are seeking a Medical Billing and Coding specialist at your MedTrak located in Oklahoma City. This position is responsible for preparing claims for submissions to insurance systems, accurate coding, patient statements, accounts receivable, collections, and much more. Conducts follow-up and clean-up of insurance claims as needed, and coordinates claims as necessary with primary billing office. I have been doing research on your business and have noticed that it is a family-owned and operated company that has been doing business in Oklahoma since 1996. What attracted me to your business is a friend of mine works there and absolutely loves her job and the way the employees are treated. Another thing was I really like your mission statement. The Health Care industry has always been a dream of mine to pursue, however, I had to decide which area since there are so many different careers. After much researching and talking to different people, I decided to pursue a Medical Billing & Coding degree, which led me to taking classes at Penn Foster University. Upon completion, I have gained the knowledge and proficiency in medical billing and coding programs. I also have the ability to multitask, a team-oriented attitude, and work well under pressure. As a Medical Billing and Coding Specialist within your company, I am confident that I could make a valuable...
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...Bai Xue Lian BD Ltd. Trial Balance (Details) From :01-JUN-15 To: 30-JUN-15 Accounts Code Head of Accounts Opening Balance Page No : 1 Report run on: 09-JUL-15 Debit Credit Closing Balance 29 Accounts Receivable 29001 C.F.R International 5,46,844.00 7,41,000.00 11,38,997.00 1,48,847.00 Shohidul S.R 2,64,700.00 2,32,300.00 2,50,000.00 2,47,000.00 29003 Rony Bhai 1,46,325.00 0.00 0.00 1,46,325.00 29004 Shohel Bhai 1,31,000.00 1,15,000.00 56,000.00 1,90,000.00 Jacky J.B.S 1,00,000.00 0.00 67,800.00 32,200.00 29006 Sunny sandal Factory-Shamim Bhai 2,92,700.00 44,35,800.00 25,80,000.00 21,48,500.00 29007 Billal Bhai 29002 29005 -77,500.00 2,55,000.00 0.00 1,77,500.00 0.00 25,000.00 2,09,000.00 6,50,950.00 29008 Alom Sandal Factory 2,34,000.00 29009 Kalam Bhai 1,96,600.00 9,84,350.00 5,30,000.00 51,000.00 0.00 0.00 51,000.00 93,000.00 50,000.00 1,60,800.00 290010 Mahir Footware-Md.Mortuja Bhai 290011 Sanowar 1,17,800.00 290012 Shawon Bhai 1,83,000.00 9,37,350.00 11,21,000.00 -650.00 290014 Jhuma Shoes 1,19,500.00 27,000.00 70,000.00 76,500.00 290015 Sufia Sandal Factory-Md.Sumon 3,300.00 0.00 0.00 3,300.00 290016 Manik 3,00,000.00 11,89,200.00 8,00,000.00 6,89,200.00 -1,00,000.00 0.00 0.00 -1,00,000.00 290017 Al-amin bhai 290018 Siddique Enterprise -29,000.00 0.00 0.00 -29,000.00 19,000.00 21,000.00 1,13,000.00 290019 S.S Enterprise 1,15,000.00 290020 Younus 2,23,500...
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...A++PAPER;http://www.homeworkproviders.com/shop/cis-510-week-10-technical-paper/ CIS 510 WEEK 10 TECHNICAL PAPER CIS 510 Week 10 Technical Paper, CIS 510 Week 10 Technical Paper - Strayer Technical Paper: Final Project Plan Due Week 10 and worth 200 points Especially for You Jewelers is a small jewelry company in a college town. Over the last couple of years, it has experienced a tremendous increase in its business. However, its financial performance has not kept pace with its growth. The current system, which is partly manual and partly automated, doesn’t track accounts receivables sufficiently, and the company is finding it difficult to determine the reasons why the receivables are so high. The company runs frequent specials to attract customers but has no idea whether these efforts are profitable or if the benefit—if there is one—comes from associated sales. Especially for You Jewelers wants to increase repeat sales to its existing customers; thus, it needs to develop a customer database. It also wants to install a new direct sales and accounting system to help solve the outlined problems. The new direct sales and accounting system for Especially for You Jewelers will be an important element in the growth and success of the jewelry company. The direct sales portion must track every sale, be able to link to the inventory system for cost data, and provide a daily profit and loss report. The customer database must be able to produce purchase histories to...
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...Jerry Mays Owner of Manhattan Company Dear Mr. Mays, While going reviewing your internal control, I here are couple of information I was able to gather about your internal control system in place. The information collected is as follow: no list of the checks is prepared; the mail is opened either by the cashier or the employee who maintains the accounts receivable records; mail receipts are deposited in the bank weekly by the cashier. For a better safeguard assets and enhance the accuracy and reliability of accounting records, a company needs to follow specific control principles which are establishment of responsibility; physical mechanical, and electronic controls; segregation of duties, independent internal verification, documentation procedures and other controls ( (weygandt, kimmel, & kieso, 2010). According to the information gathered from your company, these specific control principles are not met. After reviewing your company’s internal control, here are my recommendations. First of all the responsibility of each employee should be establish. There should be a team of employee who are in charge of opening the mails and there should be a rotation of person weekly to avoid any complicity among employee. A clear record of all the checks received should be kept and that should be done with someone else than the mail opener. This implies that a rotation of employees who are in charge of keeping the record of received checks should be kept also (this takes care of...
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...A business can not work out without an account system, which includes internal. Internal controls are used by companies to make sure financial information is accurate and valid. Strong internal controls are signs of a financially healthy company and protect the company’s integrity. Strong internal controls can also increase a company’s profitability. There are several types of internal controls that companies used to protect themselves such as: Segregation of duties, asset purchases, supervisor review, internal audits and adequate documents and records. This paper will discuss several topics from a case study about And the Fraud Continues; it’s basically about a Fraud case with MCI. The following questions will be answered below 1) Discuss the internal control weaknesses that existed at MCI that contributed to the commission of this fraud, 2) Identify and justify the approach you would take if you suspected fraudulent activity within an organization where you work, 3) Critique the ethical nature of Pavlo’s actions in the case and 4) Apply one (1) theory related to crime causation to this case. The internal control weakness that exists at MCI was Pavlo; he was able to manipulate the AR (Accounts Receivable) system because he was the creator and developer. The lack of segregation of duties takes please here because the same employee is able to receive payments, update accounts receivable records and/or reconcile the company’s bank account. This gives the opportunity to be able...
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...Filenote The purpose of this filenote is to outline the accounting treatment associated with the receivables securitisation arrangement with Westpac. Introduction AASB 9's requirements on de-recognition are complex and require interpretation in a number of areas. Factoring arrangements are often referred to as "with recourse" or "without recourse". In a "with recourse" arrangement, all or most of the credit risk remains with the entity. Such an arrangement will almost always fail the risks and rewards tests (and possibly others). It should therefore be accounted for as a loan. By contrast, a "without recourse" arrangement transfers all or most of the credit risk to the factor (transferee). Such an arrangement is likely to qualify for de-recognition (subject to an evaluation of other risks that might be relevant such as slow payment risk). In substance, such an arrangement could be economically similar to a sale of the receivables in which case it is accounted for accordingly. The continuing involvement accounting requirements of IAS 39 will rarely apply in most factoring arrangements because most arrangements result in substantially all the risks and rewards being either transferred or retained. These requirements include special rules on recording and measuring continuing involvement assets and liabilities that deviate from the normal requirements of IAS 39. Accounting Implications When an entity factors its trade receivables, an analysis should be carried...
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