...20 Audit program for Property Plant and Equipment 22 ROMM 22 Approaches to testing 22 Audit Test 23 Audit Documentation and Audit File 25 • Importance of audit documentation 25 • Parts of Audit file require Documentation 26 Auditor Report 28 Analytical Review Analytical review of Matty Kitchens is done using comparison and Ratio analysis. This analysis is based on extract of financial statement provided by Matty Kitchens. Matty Kitchens, a distributor of packaged meals and these meals are prepared by the matty kitchens itself. Company sell these products to grocery stores nationwide. Matty kitchens operates in a competitive environment. Because increased competition could affect the sales and profitability of Matty kitchens, likely affecting the value asset such as account receivables and inventory. So, we may use this information to identify areas where Matty Kitchens faces increased risk of Material Misstatement. Comparison Comparison is done using the current year unaudited financial data with previous year audited data using changes in numbers and percentage. ...
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...Introduction: Recently almost every corporation has investments in foreign country. Due to the quick growth in cross-country investments, the demand for internationally comparable financial information increased significantly. As a result we witnessed many countries that have adopted International Financial Reporting Standards (IFRS) in replace of their global General Accepted Accounting Principles (GAAP), or at least have permitted IFRS. European Union is one important example of twenty eight countries that adopted IFRS in 2005. European policy makers state that the reason for adopting one set of accounting standers is to “level the playing field” for investors in the European capital market by increasing the comparability of financial statements prepared by publicly traded companies across Europe (Cascino and Gassen, 2012). Similarly, The International Accounting Standard Board (IASB) declares that a single set of high quality accounting standards is intended to provide investors with comparable financial statements and thus help them make better decisions (Cascino and Gassen, 2012). Increasing comparability is the same reason that motivates the Securities and Exchange Commission (SEC) to support the convergence to a global set of accounting standards (Cascino and Gassen). Information comparability is “the quality of information that enables users to identify similarities in and differences between two sets of economic phenomena” (Yip and Young, 2012). There are two...
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...Much of today’s success in the business world is tied in with numbers in the form of accounting and financial statements. Able to understand and properly use these statements is a critical component in truly knowing a business and properly assessing its total performance. In the accounting world there are four main financial statements commonly understood and prepared for most corporations and many small and medium-sized businesses: the income statement, the balance sheet, the statement of cash flows, and the statement of retained earnings, which may be referred to as shareholders’ equity. An essential ability to interpret properly the information these statements contain allows internal and external users to make a wide range of decisions affecting company operations and decisions on whether or not to invest. Financial Statements Descriptions The balance sheet can be used by executives or investors to define the total of assets, liabilities, and stockholder equity that a business has. Also it can give an organization’s leaders a chance to know financial health of the company. The income statement is used for tracing the statement of present operations. The documentation provides leaders with information on revenue, income, and expenses. The document provides the reports of shareholding positions in the company. It is also likely to be used because the supportive information, such as interest payments, tax payments, and offers a report on...
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...Financial statements present themselves in several methods all of which assist in providing a recipe for utter success in any business while forming proficient interactions among managers and employees on top of thriving in networks between investors and creditors. Individual financial statements can be categorized into four basic statements which all serve their own specific purpose as well as working in cohesion with one another. These four financial statements are Income Statements, Retained Income Statement, Balance Sheet, and the Statement of Cash Flows (Laurie and Kevin Hillstrom, 2013). The Income Statement also known as the "profit and loss statement" or "statement of revenue and expense" is separated into two parts. These two parts are known as the operating and non-operating sections of the Income Statement (Investopedia.com, 2013). The operating section deals with operation items that are important to investors as well as analysts because this section unveils information about revenues and expenses that are in direct significance of the fixed business operations. The non-operating section of the Income Statement focuses on disclosing revenue and expense information about actions that are not secured directly to a company's regular operations. The Income Statements purpose is to measure a company’s financial performance over a specific accounting period and evaluates it by giving a summary of how the business acquires its revenues and expenses through both operating...
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...Accounting is probably one of the most popular professions pursed by college students in today’s world. Businesses, large and small, can greatly benefit from the services an accountant provides and the information that arises as a result of the work an accountant performs. In the following paragraphs, we will discover just what the purpose of accounting is. We will identify for of the basic financial reports and how each of these reports is related to another. Finally, we will take a look at whom these financial reports are useful to and the reasons they are useful. Accounting is defined as “the system of recording and summarizing business and financial transactions and analyzing, verifying, and reporting the results”, (Webster’s Ninth New Collegiate Dictionary, 1988). What this means is that the purpose of accounting is to identify a company’s events, record those events in chronological order, showing which accounts are impacted by each event, and then communicate/report this information to interested parties in the form of financial reports. There are four basic financial reports that are typically used to report a business’ activities: Income statement, Retained earnings statement, Balance sheet, and Statement of cash flows. Each of these reports has a separate purpose, but is also interrelated. The income statement results in the net income, or net loss, of a company by presenting the revenues first and then the expenses, over a specific time period. If the revenues are...
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...One of the most important documents or tools for an accountant is a balance sheet. A balance sheet is also referred to as a “statement of financial position”. The balance sheet is represents a companies financial situation at the end of the year. A balance sheet is basically a document that shows the breakdown of the entire companies, profits, losses, investments, and expenses with variable branches of each of the categories. A balance sheet is divided in three sections assets, liability and shareholder equity. The balance sheet will show what the company owns, their debts, the price of inventory, and how much money a company has. An income statement also knows as a “profit and loss statement” is another a vital part of a company’s development. The income statement is a financial statement that gives measurements of a company’s financial performance over a certain accounting period. The performance of the company is measured by giving an outline of how the business incurs its revenues and expenses. The statement will include net profit and losses over a specific accounting period. A retained earnings statement is not used by every company, but large corporations find it a very useful tool for success. The retained earnings statement shows the amounts and changes that have been retained by its earning during an accounting period. Retained earnings are the sums of a company’s profits, after dividend payments are settled since the company’s start. Retained earning display...
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...time in FCB. The lack of independence in the auditor could lead to inappropriate analysis of the financial statments in which the financial statements are not in a true and fair manner. The auditor is also neglecting the responsibility to rely on the previous auditor’s report in order to give a reasonable assurance. This will subsequently lead to a wrong decision making process by the management and finally producing a fraudelent material mistatement reports that mislead the users of this report such as stakeholders,investors and regulatory bodies( government and MASB). 2. By end of 2006, it was reported that FCB had been involved in accounting fraud that inflated its earnings for 2004 to 2006. In your opinion, should the auditors be held responsible for not detecting the misstatement earlier? (refer to ratio analysis) In my opinion, I strongly believe that the auditor’s should be held responsible for not detecting the material mistatement earlier. Owing the fact, that the responsibility of the appointed auditor’s is clearly stipulated in the auditing standards that they have to carry out necessary audit procedures and investigation in order to detect the material mistatements. But a point to note is that the auditor’s are not neccessarily needed to detect any fraud according to the new revised auditing standard. Thus, auditor’s should take reasonable care when analysing the financial statements given by the company so that is in compliance with the...
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...of CCPC's marketing campaing was to "drop" appromixamatly 500,000 coupons in the Sunday newspaper where Fresh & Bright was sold. The coupon worked in the following way: The 500,000 coupons could be used through October 1, 2010. CCPC has data one six month coupons for other products but does not have any data on one year coupons for detergent. CCPC estimates that two percent of the detergent coupon will be redeemed. As of Septemeber 30, 2009 CCPC has sold $2,000,000 of Fresh & Bright. Issues 1. What is the accounting issue(s) and the relevant components of the autthoritative literature? 2. When should CCPC recognize the effects of the Fresh & Bright coupon donp in its financial statements? 3. What is the dollar amount of the effect of the Fresh & Bright coupon drop on CCPC's financial statement? 4. What would constiture "sufficient evidence" to support CCPC's expected redemtion rate of 2 percent?\ 5. What are the accounting implications if CCPC's estimated redemption rate changes to 2.5 percent at a later point in time? 6. How should the effects of the Fresh & Bright coupon drop be reflected in the income statement? 7. What are the necessard journal entries? Analysis Analysis of Issue 1: What is the accounting issue(s) and the relevant components of the authoritative literature? The accounting issues relevant to the case of CCPC is the correct recognition of coupons related to sales of detergant. Relevant components of the authoritative literature include...
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...How Financial Assessments Help Organizations Managerial Analysis Abstract Financial assessment provides management with the ability to make critical business decisions for their organization; this involves examining existing data to gain insight on the current and future condition of their organization through the balance sheet, income statement. In the book, What Every Manager Should Know about Financial Analysis, Alan Donahue states “The inability to understand and deal with financial data is a severe handicap in the corporate world”, which seems fitting to mention as I discuss in this paper the significance in doing a financial assessment and some of the necessary tools that are needed in order to do a financial assessment. Basic Concept of Financial Analysis for Organizations and its Importance Financial analysis is an assessment of an organization that will determine the organization’s risk and profitability through reported financial information; the two main sources for retrieving such information are the balance sheet and income statement. The balance sheet also provides a wealth of information that enables the organization to determine its stability, vitality, and profitability through utilizing ratios. Ratios can determine the overall performance of the company through such things called liquidity, leverage and profitability. Balance Sheet The balance sheet outlines the the financial and physical resources that a company has avaliable...
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...ACC 250 Entire Course To purchase this Tutorial click below link: http://homeworkgallery.com/index.php/product/acc-250-entire-course/ ACC 250 Week 1 Assignment Accounting Memo. The software that we use for accounting applications is obsolete. Therefore new accounting software should be acquired as soon as possible. As a result our organization has made room in this year’s budget for the software. ACC 250 Week 1 Checkpoint Choosing Accounting Software. Accounting software is typically designed to handle the needs of four kinds of companies. These are (i) entry-level (entry) businesses with up to 20 employees and 5 million dollars in annual revenues (ii) small to medium businesses (SMB) with up to 100 employees and 100 million in annual revenues, (iii) small to medium enterprises (SME) with up to 500 employees and 500 million in annual revenues, and (iv) enterprise resource planning groups (ERP) with over 500 employees and annual revenues of over 500 million (Johnston, 2008) ACC 250 Week 2 Bellwether Garden Supply CheckPoint.pdf This work comprises ACC 250 Week 2 Bellwether Garden Supply CheckPoint ACC 250 Week 2 DQs. You have just completed training for your new position in a large accounting firm. The trainer has covered the difference between manual accounting and computerized accounting. What questions do you have regarding the differences? What are the advantages of computerized accounting versus manual accounting? What was the most challenging aspect...
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...Financial Research Report Introduction For investors and business owners, financial analysis poses significant importance as it evaluates the company’s performance in measureable aspects. In financial analyses financial ratios are considered important in analyzing the position of the company. It analyzes important areas of the business performance such as liquidity ratios, debt ratio, and profitability of the business. This report aims on financial performance of U.S. based company named Rockwell Collins Inc. This report analyzes the financial performance of the company. Discussion Rockwell Collins Inc. Base of the Rockwell Collins is with Collins radio since 1933. After 1933, Collins Radio Company expanded its business, and starts serving other areas by expanding it technology scope. New technological developments such as flight control devices, radio communication equipments and voice transmission satellite created market opportunity for Collins Radio Company. In 1973, Rockwell international acquired Collins Radio Company due to company financial difficulties. In June 2001, Rockwell Collins inc. was listed on the stock exchange under the symbol “COL”. Now, Rockwell Collins is in business of electronic communications, entertainment systems in flight and avionic for its various worldwide customers. Company is serving government, military and commercial customers (Rockwell Collins Inc, 2013a). Today approximately every aircraft in the world is Rockwell Collins aviation...
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...ACC 250 Week 1 Assignment Accounting Memo. http://homeworkgallery.com/index.php/product/acc-250-entire-course/ http://homeworkgallery.com/index.php/product/acc-250-entire-course/ The software that we use for accounting applications is obsolete. Therefore new accounting software should be acquired as soon as possible. As a result our organization has made room in this year’s budget for the software. ACC 250 Week 1 Checkpoint Choosing Accounting Software. Accounting software is typically designed to handle the needs of four kinds of companies. These are (i) entry-level (entry) businesses with up to 20 employees and 5 million dollars in annual revenues (ii) small to medium businesses (SMB) with up to 100 employees and 100 million in annual revenues, (iii) small to medium enterprises (SME) with up to 500 employees and 500 million in annual revenues, and (iv) enterprise resource planning groups (ERP) with over 500 employees and annual revenues of over 500 million (Johnston, 2008) ACC 250 Week 2 Bellwether Garden Supply CheckPoint.pdf This work comprises ACC 250 Week 2 Bellwether Garden Supply CheckPoint ACC 250 Week 2 DQs. You have just completed training for your new position in a large accounting firm. The trainer has covered the difference between manual accounting and computerized accounting. What questions do you have regarding the differences? What are the advantages of computerized accounting versus manual accounting? What was the most challenging...
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...Assignment 3: Fraud in the AIS Ditanyan Patterson Jay E. Wright, CPA, CFE Strayer University ACC.564 August 17, 2014 Abstract After researching for a firm that was involved in a fraud and/or embezzlement case I came upon the embezzlement of Koss Corp. Koss Corp was a company in Milwaukee, Wisconsin that manufactured stero headphones, speaker phones, computer headsets, wireless headsets, and much more. The case of Koss came about because of inaccurate financial ststements, books and records, and the lack of adequate internal controls from the years of 2005-2009. Two of Koss former employees, Sujata Sachdeva and Julie Mulvaney were the ones to engage in a wide-range of accounting fraud to cover up Sachdeva's embezzlement scam. From the lack and inadequate internal controls and failures in overseeing the accounting and financial reports by the CEO and CFO they were able to embezzle a huge amount of money. Throughout my research I will write a paper in which I must assess the failures of the firms accounting information system to prevent the related fraud/ embezzlement; Also, evaluate the effectiveness of Koss stakeholders in the event that a third-party accounting system suffers a breach. Along with assessing the level of responsibility of the software provider to the business and their clients. This paper will determine what advances in accounting and/or information technology could have done to prevent such acts from occuring, the paper will give changes that should...
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...MARCHANDIAUX Ambre MARTIN Benjamin MODIN Emilie POTIER Manon WEPHRE Annabelle FINANCIAL ANALYSIS Group J Professor: M. NIESS Alexander 0 Tuesday 12th November Table of contents I/ Presentation of the company : Overview of Meetic.................................................. 2 II/ Context of the analysis ........................................................................................... 4 III/ The financial structure of Meetic ........................................................................... 7 IV/ The trend analysis of Meetic ................................................................................ 10 V/ The cash flow analysis of Meetic ............................................................................ 13 VI/ The comparative analysis .................................................................................... 15 VII / Assessment of the risks ....................................................................................... 17 VIII/ Recommendations for Meetic Company ............................................................. 18 BIBLIOGRAPHY .......................................................................................................19 APPENDIXES ...........................................................................................................20 1 I/ Presentation of the company : Overview of Meetic Meetic is the leader of the European matchmaking websites today...
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...Investment Decision Analysis for IPG Photonics Corporation By: Stacey Fletcher FIN6409-1 Financial Management June 24, 2013 Everest University Introduction The premise of this paper is to assume that I have just graduated from the MBA program and have taken a job as a fund manager for a well-known investment banking house where I have been given $300 million fund to manage/invest. The type of fund I am managing is a pension/retirement fund of long-term perspective and tolerable of moderate risk for loss of capital, it has a required annual return of 9%. As such, in order to mitigate the investment risk, I am instructed to make 12 investments of $25 million dollars each. My first assignment is to preform an analysis on a company of my choice to determine if the fund I am managing should make the investment of $25 million in the stock of this company, and prepare a report. My analysis will be primarily based upon the company's most recent 3 years annual and quarterly SEC filings, and will be comprised of calculations of financial ratios for cash flows and profitability, as well as, forecast performance measures of earnings, analysts' reports and related articles. The decision to invest or not invest will be based upon and supported by this analysis. The company I have chosen for my analysis, IPG Photonics Corporation ,went public in 2006 and is listed on the NASDAQ represented by ticker symbol IPGP. IPG is currently headquartered in Oxford, Massachusetts...
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