...INTERNAL MEMO Date : November 13th, 2015 To : Ms. M. Marfanisha, Operation Manager From : Mr. Arvin P. Tanato, Vice President Subject : Problem with office sanitary Dear Ms. Marfanisha, Regarding to the report you had sent to me about the issues of the sanitary in the office. There are some issues that are not satisfactory for me. There are some things that I wanna ask you about this issues. I don’t really think that the sanitary toilets, pantry and the hallway could affect the employee’s performance since they work on their own work place. And why the employees not helping the workers by maintain the cleanliness of the office, since they’re the one who used it. And about the outsourcing thing, why don’t we just train the existing workers rather than hire new workers that will allowing costs more. And speaking of that, how much approximately will it cost to hire new workers? Would it be more efficient than train the old workers? And the last thing is, why can’t we ask the existing workers to see if there’s any problem or own reasons due to their job. Hope by asking the workers will answers all the issues about this sanitary in the office. Contact me for the further discussion. Best Regards, APT INTERNAL MEMO Date : November 13th, 2015 To : Mr. President From : Mr. Arvin P. Tanato, Vice President Subject : Problem with office sanitary Dear Mr. President Regarding to the recent issues about the sanitary office, I received all the problem from the operation manager...
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...CPA Report MEMO Drafted Response for Requested Information: Methodology Financial Accounting Standards No. 96 requires entities to use the liability method for calculating the deferred tax assets and deferred tax liabilities (Wilson, 1990, p. 1). The liability method is used to classify the temporary differences on the balance sheet date as temporary differences. A temporary difference might result in a future reversal as a higher taxable income or deductible differences from future reversal resulting in a lower taxable income (1990). The difference between the tax basis results as an asset or liability transferring into a carrying or book amount in the financial statements (Kieso, Weygandt, & Warfield, 2007, p. 996). The net deductible can be carried back three years as a taxable income or to other net taxable temporary differences. If there are any remaining net deductible the net taxable temporary differences are normally carried for 15 years. When the net deductible is carried back an imaginary refund is created as a deferred tax asset. This deferred tax asset is considered as a current tax asset because the assets come from the year after the date of balance sheet (1990). Reporting Accounting Changes Reporting changes for accounting are identified under accounting principle changes, accounting estimates, and changes in reporting entity classification. Changes in estimates arise from changing depreciable methods on assets (Kieso, Weygandt, & Warfield, 2007, p. 1152)...
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...It has come to the attention of Tech Garden’s Innovative Services Task Force (ISTF) that a new and innovative method of payment is quickly gaining popularity in recent years for its ability to provide more security and efficiency to its users. The process is called biometric payment and it relies on a biometric authentication system that enables purchasers to simply scan their fingerprints to authenticate purchases and have their owing balance deducted directly from their bank account, saving time and improving security. Although there exist several different biometric systems that scan facial structure and voice, fingerprinting is the safest and most distinctive and permanent method. This project, although currently being in its early stages, has demonstrated potential promise and value. Adopting this technology would not replace credit and debit cards but would simply provide an additional method of payment for consumers. The benefits that accompany harnessing this technology are as follows: • Cost effective for merchants • Heightened security and fraud preventive • Time efficient transactions • Less cards and cash to carry around • No pin to remember The fact that this technology eliminates debit card fees, saves time and improves security is good enough reason to closely consider implementation of this process. This technology does bring forth a few disadvantages; the biggest of which is the concern that consumers’ fingerprints end up in the wrong hands...
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...Canyon rental, an outdoor outfitters and supply shop, your boss has asked you to look at the internal control system within the store. He is seeking a loan for expansion and must have his books audited. The auditor asked about his control procedures and documentation. He has no idea what the auditor is talking about. Your boss has asked you to do what you need to understand the system and has asked for a memo with your observations and recommendations by the end of the week. Through interviews and observation you notice the following: Purchase orders, and sales invoices are not pre-numbered due to the higher cost of printing the forms. To save time the sales clerk enters the sales at the end of the day into the accounting records, prepares the deposit and delivers it to the bank. The sales clerk a trusted and long-term employee grants sales returns at her discretion. The purchasing manager both orders merchandise and approves the payment for the order. Betty Gamble, the bookkeeper has not taken a vacation in three years. Checks are brought to the owner twice a week for signing. He is overwhelmed by all of the paperwork and has asked for the checks only on which he stamps his signature. In your memo, give a summary of the elements of an effective internal control system. Comment on each of your observations and if there is a weakness provide a solution. Your memo should be 2-3...
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...employee at Canyon rental, an outdoor outfitters and supply shop, your boss has asked you to look at the internal control system within the store. He is seeking a loan for expansion and must have his books audited. The auditor asked about his control procedures and documentation. He has no idea what the auditor is talking about. Your boss has asked you to do what you need to understand the system and has asked for a memo with your observations and recommendations by the end of the week. Through interviews and observation you notice the following: Purchase orders, and sales invoices are not pre-numbered due to the higher cost of printing the forms. To save time the sales clerk enters the sales at the end of the day into the accounting records, prepares the deposit and delivers it to the bank. The sales clerk a trusted and long-term employee grants sales returns at her discretion. The purchasing manager both orders merchandise and approves the payment for the order. Betty Gamble, the bookkeeper has not taken a vacation in three years. Checks are brought to the owner twice a week for signing. He is overwhelmed by all of the paperwork and has asked for the checks only on which he stamps his signature. In your memo, give a summary of the elements of an effective internal control system. Comment on each of your observations and if there is a weakness provide a solution. Your memo should be 2-3...
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...1. P. Kemezis and W Clasgall, 'ATexas Wildcatter Cashes in on French Oil," Busrhess W-eek,'tsllay' ' 1985, 106-10i. 2. The dominant companies in the oil and gas industry include such firms as ExxonMobil and ConocoPhillips. These firms are often referred to as the "majors' or simply as "Big Oil." 207 208 !': $1 iil {r i. $- :..1 sEcTtoNTHREE INTERNALCournollssuas of oil and gas exploration by employing a rough-andtumble business strategy. Lee recognized that the large domestic oil firms in the U.S. had already identified the prime drilling sites in this country. So, Lee decided that Triton should focus its exploration efforts in other oil-producing countries, particularly in regions of those countries largely overlooked by "Big Oil." During Lee's tenure with Triton, the company launched exploration ventures in Argentina, Australia, Canada, Colombia, France, Indonesia, Malaysia, New Zealand, and Thailand. In the early 1970s, Triton discovered a large oil and gas field in the Gulf of Thailand. Recurring disagreements and confrontations with the Thai government stymied Triton from developing that field for more than l0 years. Lee's experience with the Thai government taught him an important lesson: If Triton's exploration ventures *.re io be successful in foreign countries, the company had to foster good relationships with key governmental officials in those countries. Lee created Triton Indonesia, Inc., a wholly owned subsidiary...
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...impairment since it does affect the value and useful lives of the PPE if, for instance, there are some damage of the equipment. If there are some different that Billy’s did not report or announce, auditors should document those differences in its reports. Billy’s spread the $865 million plant to each asset based the percentage of the seller’s total original cost applicable to each asset class. What the engagement team did is that they checked the spread list, provided by management of Little Drummer, with the real plant assets. This is definitely inadequate. Auditors want to make sure that the evidence, the spread list, is reliable. So, more audit tests should be performed. First, auditors need to test the internal control of Little Drummer. If the result show that its internal control is weak, which means those evidence offered by Little Drummer is unreliable. Therefore, auditor should test the assertions of accounting records related to the plant asset to identify the spread list’s reliability. Another thought on this point, the acquisition is based on the fair market value of the assets....
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...Real McCoy – Lower 6 Alpha 1 Accounting Internal controls Literature Review Internal control is the process designed to ensure reliable financial reporting, effective and efficient operations, and compliance with applicable laws and regulations. The internal controls safeguard assets against theft and unauthorized use, acquisition, or disposal is also part of internal control (www.cliffnotes.com). Why are internal controls important? Internal controls help to provide reliable data by ensuring that information is recorded in a consistent way that will allow for useful financial reports. They also help prevent fraud and loss by safeguarding assets and essential records. Internal controls promote operational efficiency by reducing unnecessary duplication of effort and guarding against misallocation of resources. In addition they encourage adherence to management policies and funding source requirements. Examples of controls sourced from www.mango.org.uk Delegated authority The Board of Trustees delegates authority through the Chief Executive for the day-to-day running of the organization. In a large and busy organization it is not practical to expect one person to make all the decisions and authorize all transactions. The Chief Executive will, therefore, further delegate authority to members of the staff team to relieve the load and to ensure smooth operation during absences of key staff (compasspoint.org). Every organization should decide in advance who should do what...
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...Learning Team A Accounting Firm Memo To: Accountants From: Date: 1/28/2013 Re: New SAS 115 Rules New SAS 115 Rules The purpose of this memo is to inform you of the new auditing rules described by SAS 115. The Accounting Standards Board issued Statement on Accounting Standards (SAS) 115. This regulation is an amendment to and replaces SAS 112. The new regulation kept the same name as the previous regulation. The name of the regulation is Communicating Internal Control Related Matters Identified in an Audit. Per the American Institute of CPAs website, “SAS 115 requires the auditor to make communications, in writing, to management and those charged with governance regarding significant deficiencies and material weaknesses in internal controls that you note in your audits.” What changed? SAS 115 amends and replaces SAS 112. Noteworthy changes in SAS 115 include new definitions of material weaknesses and significant deficiency. The new definitions as described in SAS 115 are listed below. Material Weaknesses: “A deficiency, or combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis.” In SAS No.112 material weakness’ definition stated “more than a remote likelihood” that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis...
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...at Canyon rental, an outdoor outfitters and supply shop, your boss has asked you to look at the internal control system within the store. He is seeking a loan for expansion and must have his books audited. The auditor asked about his control procedures and documentation. He has no idea what the auditor is talking about. Your boss has asked you to do what you need to understand the system and has asked for a memo with your observations and recommendations by the end of the week. Through interviews and observation you notice the following: 1.Purchase orders, and sales invoices are not pre-numbered due to the higher cost of printing the forms. 2.To save time the sales clerk enters the sales at the end of the day into the accounting records, prepares the deposit and delivers it to the bank. 3.The sales clerk a trusted and long-term employee grants sales returns at her discretion. 4.The purchasing manager both orders merchandise and approves the payment for the order. 5.Betty Gamble, the bookkeeper has not taken a vacation in three years. 6.Checks are brought to the owner twice a week for signing. He is overwhelmed by all of the paperwork and has asked for the checks only on which he stamps his signature. In your memo, give a summary of the elements of an effective internal control system. Comment on each of your observations and if there is a weakness provide a solution. Your memo should be 2-3...
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...DQs Access the SEC home page at http://www.sec.gov. What is one of the most recent litigation brought by the SEC against a public firm or against an accounting firm? Read the abstract of the complaint and download the document filed with the court. Comment on the nature of the litigation. What is one the most recent Staff Accounting Bulletin that provides guidance to the profession? What was the guidance given? The Sarbanes-Oxley Act of 2002 has been described as the most far-reaching legislation affecting business since the passage of the 1933 Securities Act. What are the specific portions of the legislation that affect the external audit profession, and how do they affect the profession? How does the legislation affect the internal audit profession? What are some activities that...
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...Subject: Immediate Internal Controls Evaluation Date: October 13, 2014 Beemer’s internal control system may be outdated and in need of evaluation, and perhaps redesign. As we are all one team, it is important that every one of us is informed of Beemer’s most current internal control policies. With that said, I am expecting that you will pass this information on to your respective departments. This memo will answer the following questions: 1. What are internal controls? 2. How will this benefit this company? 3. What does this mean for me? Internal controls are procedures that are put in place to ensure the integrity of information distributed by organizations. These procedures help safeguard assets and avoid error within organizations, as well as protect against any acts of fraud that may occur. While these procedures are implemented for protection purposes, they are also useful to increase efficiency in the workplace. For example, proper controls can help to maintain records of important transactions, and insure that Beemer’s stays compliant with the law. The evaluation and possible redesign of Beemer’s internal control procedures will ensure that the company has a trusted system in place to protect against error and fraud. Not only does this organization want the latest and most effective internal control system in place, but it is also important to update these systems regularly. Consistently revamping and improving the internal control system will...
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... SOX Compliance Solution ***************** CMGT 16FEB2015 ******** SOX Compliance Solution The following Memo is to address the issue of organizing training for all company management personal, in the training of MetricStream© a software solution to The Sarbanes-Oxley Act (SOX). The Memo will address the main issue and how the training will be provided. The memo will also address how the company will be able to measure how successful the training was, and any problems that will be needed to be address had the company decided to conduct any future training sessions. MEMORANDUM TO: All Managers FROM: Head Office DATE: February 16, 2015 SUBJECT: SOX Compliance Solution Compliance to the Sarbanes-Oxley Act is mandatory and requires the financial reports are accurate and reviewed by internal auditors to ensure accountability ("The Sarbanes-Oxley Act ", 2006). To ensure adherence to the SOX requirements and in order to streamline the process while reducing cost at the same time; the company has decided to implement MetricStream© as a software solution for managing the requirements of the act. MetricStream© not only provides tools for the management of internal auditing and reporting process, but also provides a way to show evidence of report findings. This tool also provides collaborative assistance tools to streamline the underlining process required by section 302 of SOX (MetricStream, Inc, 2015). The training required as part of the implementation...
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...collectively form which of the following? a. supply chain b. value chain c. ERP system d. AIS Chapter 2: 3. Which of the following would contain the total value of all inventory owned by an organization? a. source document b. general ledger c. cash budget 4. Which of the following is most likely to be a general ledger control account? a. accounts receivable b. petty cash c. prepaid rent d. retained Chapter 12: 8. Which of the following provides a means both to improve the efficiency of processing customer payments and also to enhance control over those payments? a. CRM b. lockboxes c. aging accounts receivable d. EDI 9. For good internal control, who should approve credit memos? a. credit manager b. sales manager c. billing manager d. controller 10. For good internal control over customer remittances, the mailroom clerk should separate the checks from the remittance advices and send the customer payments to which department? a. billing b. accounts receivable c. cashier d. sales Chapter 13: 1. Which of the following inventory control methods is most likely to be used for a product for which sales can be reliably forecast? a. JIT b. EOQ c. MRP d. ABC 3. Which of the following is true? a. It is easier to verify the accuracy of invoices for purchases of services than invoices for purchases of raw materials. b. Setting up petty cash as an imprest fund violates segregation of duties. c. The EOQ formula is...
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...Building an Effective Internal IT Audit Function (While this topic is written from an internal auditor's perspective, the concepts and philosophies can be adapted to guide the external audit function as well) AUDIT DEPARTMENT PURPOSE Why does the internal audit department exist? What's the end goal? * Is our purpose to issue reports? * To raise issues? * To make people look bad? * To show how smart we are and how dishonest, incompetent, and corrupt the rest of the company is? * To flex our muscles and show that we can do anything and tell on anyone because we report to the board of directors? AUDIT DEPARTMENTS * formed by the company's audit committee (a subset of the board of directors) * for the purpose of providing them with independent assurance that internal controls are in place and functioning effectively. The audit committee wants a group that it can trust to be objective enough to tell it if there is anything the committee should be worried about. What's "really going on" in the company. The committee wants someone it can trust to turn in all the evildoers in the company who refuse to implement internal controls. Internal audit departments usually report directly to the chairman of the audit committee, so they feel protected from blowing the whistle on the hordes of dishonest managers who surely have infested the company. The real mission of the internal audit department is to help improve the state of internal controls at the company. Admittedly...
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