...ISSUES IN ACCOUNTING EDUCATION Vol. 28, No. 4 2013 pp. 983–1007 American Accounting Association DOI: 10.2308/iace-50497 Second Round Electronics: A Case for Critical Thinking Nathalie Johnstone, Brandy Mackintosh, and Fred Phillips ABSTRACT: This instructional case requires students to provide advice to a client who is currently the sole owner of a for-profit company that reconditions and sells used electronics. The client is considering purchasing a similar company with the vision of expanding into the sales and service of emerging technologies. The target company’s unaudited financial statements contain questionable accounting choices and judgments that appear to enable the company to meet external financial reporting constraints. In their role as financial advisers, students are expected to use critical thinking skills to identify and evaluate questionable choices in the target company’s financial statements. This case is suitable for use in introductory and intermediate financial accounting as well as introductory auditing and assurance courses, and can be used as a context for inclass discussion, as a basis for exam questions, and/or as a writing assignment. Assessment rubrics and Teaching Notes accompany the case for use by instructors. Keywords: financial accounting; policy choices; loan covenants; ratio analysis. THE CASE econd Round Electronics (SRE) is a privately owned company that reconditions and sells used consumer electronics. Its product offerings include...
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...was once a hotspot for many years but for the past five years the business has been declining. Although Mr. Wallace had conducted a good business in his time, it appears as though new and improves methods needed to be in place to keep the business thriving. Mr. Wallace had acquired a wealth of knowledge about the coffee business and unfortunately before he passed way he was unable to share the information with us (his heir/successor). His system for record keeping consisted of a note pad that tracked inventory along with payroll and coupons. His advertising plan was by word-of-mouth only and since he had an exceptional memory, he never recorded any family recipes or made a client list. In order to bring the Café into the 21 Century, quite a few changes need to be made. The business needs to gain a competitive advantage though technology, deploy a wireless network for customers, use CRM to implement marketing campaigns and sales strategies, and develop project management activities for implementing solutions. Competitive Advantage A competitive advantage is product or service that an organization’s customers place a greater value on than similar offerings from a competitor…These advantages are usually temporary because they are often duplicated by a competitor which in turn creates a perpetual cycle of improvement strategies (Baltzan & Phillips, 2007). Business that are developing strategies for improvements, must review...
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...salads. It was once a hotspot for many years but for the past five years the business has been declining. Although Mr. Wallace had conducted a good business in his time, it appears as though new and improves methods needed to be in place to keep the business thriving. Mr. Wallace had acquired a wealth of knowledge about the coffee business and unfortunately before he passed way he was unable to share the information with us (his heir/successor). His system for record keeping consisted of a note pad that tracked inventory along with payroll and coupons. His advertising plan was by word-of-mouth only and since he had an exceptional memory, he never recorded any family recipes or made a client list. In order to bring the Café into the 21 Century, quite a few changes need to be made. The business needs to gain a competitive advantage though technology, deploy a wireless network for customers, use CRM to implement marketing campaigns and sales strategies, and develop project management activities for implementing solutions. Competitive Advantage A competitive advantage is product or service that an organization’s customers place a greater value on than similar offerings from a competitor…These advantages are usually temporary because they are often duplicated by a competitor which in turn creates a perpetual cycle of improvement strategies (Baltzan & Phillips, 2007). Business that are developing strategies for improvements, must review their options before making quick...
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...product/brand * Substantial cash growth * Phillip Morris SWOT Analysis Phillip Morris SWOT Analysis Revenue Distributed in Important Areas * Excellent employee morale | Weaknesses * Key note product/brand unhealthy * Substantial cash growth obtained at the risk of human health * Social perception of product has negative effect on company image * Taxation & Regulation | Opportunities * Smokeless tobacco * Acquiring company for tobacco quitting aids | Threats * Laws prohibiting tobacco use * Competitors * Lawsuits | Strengths With any company, it is imperative that upper management is able to identify the strengths and weaknesses that are within the company. Having knowledge of this would allow those in controlling positions to stay abreast on the competition and to strengthen those weakened areas. When Mr. Phillip Morris established the Phillip Morris Company in 1847, he probably would not have imagined that one of the major strengths of the company after over a century, in this present day, is one of the largest tobacco companies worldwide (Phillip Morris International, 2015). In 1924, the company began to manufacture its famous brand known as Marlboro in Richmond, Virginia, a plant that still remains standing until this day (Phillip Morris International, 2015, para 4). It is just as important that the company introduces a product that would yield the revenue to sustain the company, as did Phillip Morris. In 1972, Marlboro became the world’s...
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...ISSUES IN ACCOUNTING EDUCATION Vol. 26, No. 3 2011 pp. 593–608 American Accounting Association DOI: 10.2308/iace-50038 Wiki Art Gallery, Inc.: A Case for Critical Thinking Fred Phillips and Brandy Mackintosh ABSTRACT: This instructional case requires students to provide advice to a client who is currently a co-owner of a for-profit art gallery. The client is planning to purchase his coowner’s shares at a price to be determined based on their company’s recent financial performance. The company’s financial statements, prepared by the client’s co-owner, contain accounting choices and judgments that students should identify and evaluate using critical thinking skills. This case is suitable for use in introductory and intermediate financial accounting, and in introductory auditing and assurance courses. Accompanying the case is a set of teaching notes and assessment rubrics for use by instructors. THE CASE The Setting Wiki Art Gallery, Inc. (WAG) is a privately owned business started in 2006 by two students. Rob Wilco combined his entrepreneurial business interests with Stephen Conley’s knowledge of artwork to create an online art gallery, which they named WAG. WAG’s start-up years were challenging. The owners contributed their savings to the company, but initially earned little return on their significant investments of money and time. Propelled by a belief that their work would pay off, they persevered. Now, it appears their luck is changing. WAG became profitable in late 2009 and...
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...Lister v Hesley Hall Ltd [2001] UKHL 22, [2002] 1 AC 215, [2001] 2 WLR 1311, [2001] 2 All ER 769 HL Summary The defendants ran Axelholme House, which was attached to Wilsic Hall School in Doncaster. Local authorities would send children to the school and they would board at Axelholme House. The defendants employed Mr and Mrs Grain to run the house and maintain discipline. The claimants stayed at Axelholme House between 1979 and 1982. During that time they were sexually abused by Mr Grain. They sued the defendants, claiming that the defendants were vicariously liable in respect of the torts committed by Mr Grain when he sexually abused the claimants. The Court of Appeal dismissed the claimants’ actions on the grounds that Mr Grain was not acting in the course of his employment by the defendants when he sexually abused the claimants. The House of Lords reversed the Court of Appeal’s decision, holding that because there was a “close and direct” connection between what Mr Grain was employed to do and Mr Grain’s sexual abuse of the claimants, the defendants were vicariously liable in respect of the torts committed by Mr Grain when he sexually abused the claimants. Comments It is not an understatement to say that this is the most important decision on vicarious liability ever handed down by the House of Lords. It’s unfortunate, then, that the decision is so badly flawed. Two criticisms may be made. First, the reasoning underlying the decision is sloppy, to say the least. Second...
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...Kristen Mihevc ACC/546 March 3, 2013 Scott Phillips March 3, 2013 Joe Bootwell Executive Senior Vice-President and CFO Apollo Shoes Inc. 100 Shoe Plaza Shoetown, ME 00001 Dear Mr. Bootwell, Thank you for taking the time to speak with Arnold Anderson, Darlene Wardlaw, and me last week. I understand from our conversation that you recently parted ways with your former auditing firm as a result of mutually incongruent goals. I appreciate your interest in Anderson, Olds, and Watershed (AOW) and want to explain some of the many audit and assurance services that my firm has to offer. As a publicly traded company, the Securities and Exchange Commission (SEC) requires Apollo Shoes to submit audited financial statements as part of its annual 10-K filing. The Sarbanes-Oxley Act of 2002 also requires auditors to attest to the effectiveness of internal controls in the financial reporting process. My firm has years of experience in supporting organizations with these requirements. Not only is an independent audit of financial statements required by law, but it can also serve to provide external stakeholders with assurance that your financial statements are fairly presented in accordance with generally accepted accounting principles (GAAP). These stakeholders, including banks, investors, and other creditors, rely on this assurance to assess the amount of risk involved in investing in your business. Often, a set of audited financial statements...
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...Case Studies to accompany Auditing and Assurance Services in Australia by Gay and Simnett Prepared by Renee Radich and Philip Ross [pic] McGraw-Hill Australia [pic] A Division of The McGraw-Hill Companies Copyright © 2002 McGraw-Hill Australia Pty Limited Additional owners of copyright are named in on-page credits. Apart from any fair dealing for the purposes of study, research, criticism or review, as permitted under the Copyright Act, no part may be reproduced by any process without written permission. Enquiries should be made to the publisher, marked for the attention of the Publishing Manager, at the address below. Copying for educational purposes Under the copying provisions of the Copyright Act, copies of parts of this material may be made by an educational institution. An agreement exists between the Copyright Agency Limited (CAL) and the relevant educational authority (Department of Education, university, TAFE, etc.) to pay a licence fee for such copying. It is not necessary to keep records of copying except where the relevant educational authority has undertaken to do so by arrangement with the Copyright Agency Limited. For further information on the CAL...
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...Introduction Letter Kristen Mihevc ACC/546 March 3, 2013 Scott Phillips March 3, 2013 Joe Bootwell Executive Senior Vice-President and CFO Apollo Shoes Inc. 100 Shoe Plaza Shoetown, ME 00001 Dear Mr. Bootwell, Thank you for taking the time to speak with Arnold Anderson, Darlene Wardlaw, and me last week. I understand from our conversation that you recently parted ways with your former auditing firm as a result of mutually incongruent goals. I appreciate your interest in Anderson, Olds, and Watershed (AOW) and want to explain some of the many audit and assurance services that my firm has to offer. As a publicly traded company, the Securities and Exchange Commission (SEC) requires Apollo Shoes to submit audited financial statements as part of its annual 10-K filing. The Sarbanes-Oxley Act of 2002 also requires auditors to attest to the effectiveness of internal controls in the financial reporting process. My firm has years of experience in supporting organizations with these requirements. Not only is an independent audit of financial statements required by law, but it can also serve to provide external stakeholders with assurance that your financial statements are fairly presented in accordance with generally accepted accounting principles (GAAP). These stakeholders, including banks, investors, and other creditors, rely on this assurance to assess the amount of risk involved in investing in your business. Often, a set of audited financial...
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...made up of 3 Sections. Name: Section 1: A lean environment [LO1] This section will help you to evidence Learning Outcome 1: Understand the concept of a lean environment. Learning objective Place in Assessment 1.1 Explain the principles of lean organisation techniques Question 1 Page 1, 2 1.2 Explain the benefits of a lean environment Question 2 Page 2 1. What are the principles of lean organisation techniques? Name and describe the 5 main principles below. [1.1] Principle 1: Specify what creates value for customers Find out what the customer wants and what counts a s value for money it then becomes easier to see the non-value activities which then can be removed. Principle 2: Identify the steps along the process chain From start to finish identify how value will be delivered to the customer, and then remove all unnecessary processes. Principle 3: Make processes flow by eliminating waste The activity or process has been identified the task in hand would be to find and remove or minimise the no-value waste. Principle 4: Respond to customer demand Find out what the customer wants so the business will produce what is needed exactly when the customer needs it. Principle 5: Strive for perfection at all times by continually improving...
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...Organizational Structure 4 1.3 Mission of the Business 5 1.4 Key Business Strategies 5 2.0 Identify Stakeholders 6 2.1 Internal stakeholder 6 2.1.1 Employee 6 2.1.2 Management 6 2.1.3 Shareholders 7 2.2 External Stakeholder 7 2.2.1 Customers 7 2.2.2 Suppliers 8 2.2.3 Competitors 8 2.3 Relationship between the business and its environment 8 2.4 Context of the risk management framework 9 2.5 Development of internal risk environment 10 2.6 Development of external risk environment 10 3.0 Integration risk management and developing risk framework 12 3.1 Risk Management Process 12 3.1 Risk Identification framework and Risk Area Structure 13 3.4 Risk Identification 14 3.4.1 Checklist 14 3.4.2 Brainstorming 14 3.4.3 Structure Interview 14 3.5 Risk Assessment 15 3.5.1 Human Reliability 15 3.5.2 Cause and effect analysis 15 3.5.3 Failure Mode Effect Analysis 15 3.0 Risk Register 16 Conclusion 17 Reference 18 Appendix B – Likelihood 21 Appendix C – Consequences 22 Appendix D1 – Detailed Risk Register (Risk : Very High) 23 Appendix D2 - Detailed Risk Register (Risk : High) 24 Appendix D3 - Detailed Risk Register (Risk : Yellow) 25 Appendix D4 - Detailed Risk Register (Risk : Green) 26 Figures Figure 1: Organizational Structure 4 Figure 2 : AS/NZS ISO 31000:2009 12 Figure 3 : Risk Identification Framework 13 Figure 4 : Risk Register Matrix 16 Figure 5 : Store Location Error! Bookmark not defined. Figure 6 : Store...
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...The Supreme Court Annual Report and Accounts 2012–2013 The Supreme Court Annual Report and Accounts 2012–2013 Annual Report presented to Parliament pursuant to Section 54(1) of the Constitutional Reform Act 2005. Accounts presented to the House of Commons pursuant to Section 6(4) of the Government Resources and Accounts Act 2000. Accounts presented to the House of Lords by Command of Her Majesty. Ordered by the House of Commons to be printed on 20 May 2013. HC 3 London: The Stationery Office £21.25 © Crown Copyright 2013 You may re-use this information (excluding logos) free of charge in any format or medium, under the terms of the Open Government Licence. To view this licence, visit: www.nationalarchives.gov.uk/ doc/open-government-licence/ or email: psi@nationalarchives.gsi.gov.uk. Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned. Any enquiries regarding this publication should be sent to us at: enquiries@supremecourt.gsi.gov.uk You can download this publication from www.supremecourt.gov.uk ISBN: 9780102983234 Printed in the UK by The Stationery Office Limited on behalf of the Controller of Her Majesty’s Stationery Office ID 2557463 05/13 Printed on paper containing 75% recycled fibre content minimum. The Supreme Court Annual Report and Accounts 2012–2013 4 Contents one FOREWORD AND INTRODUCTION SETTING DIRECTION: OUR OBJECTIVES AND OPERATING CONTEXT ...
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...an 'actor' to Jeff as 'spectator'" emphasising the "quasi-theatrical, quasi-novelistic" concept of rear window which allows it to be recognised as "Hotchcockian". In addition to this, the use of curtain's being opened and closed by neighbours is symbolic in representing the beginning and ending of the narrative and what Jeff and the audience are able to witness, a technique employed in theatre. The Hitchcockain concept of the "quasi-theatre, quasi-novelistic" narration is also present in Hitchcock's Rope (1948) showing the curtains being opened after the murder has been conducted in order to show visually he the beginning of a new scene. Another "Hitchcockian" element of theatrical devices has also been applied in Hitchchock's Rope when Phillip and Brandon are preparing for dinner guests after murdering and hiding their friend, this section of the film entails the pair moving furniture around as if they were preparing a scene on a stage in theatre, using the dining room as the main focus of the film much like the set in rear window, these two films can be identified as Hitchcock's work through the "Hitchcockian" approach employed. The use of lighting in Rear window is interesting when considering "Hitchcockian" elements of the film. Upon introducing herself to Jeff, Lisa walks around the room systematically switching lights on which reveal parts of the room in succession until all can be seen. This reflects what would be seen in theatre where lighting is a common technique used...
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...|Department of Law and Criminal Justice Studies |[pic] | | | | |ASSIGNMENT COVER SHEET | | |STUDENT NAME |Nkiruka-Rebecca Elliott |STUDENT No |ELL11053447 | | | |PROGRAMME | |(highlight correct subjects) | |MODULE NAME: | | | |Victims and Victimology | |MARKER’S NAME: |Rashid Aziz...
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...This Proposed Rule document was issued by the Animal and Plant Health Inspection Service (APHIS) For related information, Open Docket Folder Docket folder icon Action Proposed rule. Summary We are proposing to amend the fruits and vegetables regulations to allow the importation of fresh apples (Malus pumila) from China into the continental United States. As a condition of entry, apples from areas in China in which the Oriental fruit fly (Bactrocera dorsalis) is not known to exist would have to be produced in accordance with a systems approach that would include requirements for registration of places of production and packinghouses, inspection for quarantine pests at set intervals by the national plant protection organization of China, bagging of fruit, safeguarding, labeling, and importation in commercial consignments. Apples from areas in China in which Oriental fruit fly is known to exist could be imported into the continental United States if, in addition to these requirements, the apples are treated with fumigation plus refrigeration. All apples from China would also be required to be accompanied by a phytosanitary certificate with an additional declaration stating that all conditions for the importation of the apples have been met and that the consignment of apples has been inspected and found free of quarantine pests. This action would allow for the importation of apples from China into the continental United States while continuing to provide protection against the...
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