...responsible for leading the engagement team through the audit and making decisions during the process. The partner is responsible for reviewing the team’s final work, monitoring quality control standards and maintaining the human-resource policies of the firm. It is required that partners rotate periodically. Auditing & Assurance Services states “as required by the Sarbanes-Oxley Act, the SEC independence rules require the lead and concurring audit partner to rotate off the audit engagement after five years.” (Arens, Elder, and Beasley, 2014, pg. 89) Can an accounting firm hope to accrue any real benefit from a marketing campaign such as the one carried out by Abernethy and Chapman? Should the management of a company select its auditors based on advertisements alone? All companies need to have some type of marketing strategy in place in order to be successful and generate new sources of revenue. In today’s day in age of technology, it is easier and cheaper than ever to advertise your services for a fraction of the cost. Abernethy & Chapman have the right idea by sending out newsletters to their existing clients. Word of...
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...Lakeside Auditing Case Study Case 1 Prepared by: January 27, 2011 1: An independent annual audit can provide credibility to information, and this could be very helpful for decision making. In this specific case, the owner of the Lakeside requires an independent CPA firm to perform an annual audit because the owner wants to show the public a “good-look” of its financial statements; since he would like to receive more capital by making his company public. In addition, good-looking financial statements of the company could provide good credit from the bank. To the lakeside company, the owner would like to provide audited financial statement to the bank to obtain the loan and receive the best possible interest rate. On the other hand, a decision by a bank loan officer about whether to make a loan to Lakeside Company and what rate of interest adequately compensates the bank for the level of risk assumed depends on an independent auditing report about lakeside’s financial reports. An auditing report about the company is reliable for the bank; it can significantly reduce the level of information risk. If the loan officer has assurance from the auditors that the company’s financial statements are prepared in accordance with GAAP, he or she will have more confidence in his or her assessment of business risk. By reducing information risk, the audit reduces the overall risk to the bank. 2: According to GAAS, the auditor must obtain a sufficient understanding of the entity and...
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...The Likeside Company: Auditing Cases AUDITING PROCEDURES AND AUDITING DOCUMENTATION: TESTING THE INVENTORY PURCHASING SYSTEM Art Heyman is employed as a staff auditor with the independent accounting firm of Abernethy and Chapman. For the first two weeks of December 2012, Heyman is asined to the Lakeside Company examination. During this period, he is to perform a number of testing procedures designed by Carole Mitchell, in-charge auditor on the engagement. Heyman recalled that several parts of the initial risk brainstorming involved inventory and merchandise purchases. At the present time, Heyman is beginning to analyze the transactions that occur in the client's merchandise procurement system. Within this testing, he is especially interested in determining the extent to which employees comply with control procedures while carrying out various required activities. This evaluation will influence the assessment of control risk and therefore, the nature, timing, and extent of substantive tests to be performed by the firm in this area. Lakeside leases a perpetual inventory record accounting system from DATA Processing System of Richmond, an outside service organization. The initial entries are made by the Controller's division of Lakeside, and on a weekly basis the transactions are uploaded through DATA Processing Systems' website. Reports are then generated, and one copy of the current inventory balances goes to Edward Thomas, who is responsible for acquiring merchandise, while...
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...DISCUSSION 1. A company profit-sharing arrangement is a matter of auditor concern because it provides an incentive for employees to generate artificially high income figures. These individuals can receive direct financial benefits from the manipulation of reported earnings. This potential problem is even more of a concern in the Lakeside engagement because controls are weak and each store is geographically isolated from the oversight provided by the administrative offices. 2. This case describes the payroll system used by the Lakeside Company. Tests of controls are designed by the auditor to verify that specific control features identified as possible strengths are operating effectively. A sample of such tests would include the following: a. Compare the payroll records produced by Sarah Sweet to time tickets completed by hourly employees noting agreement as to hours worked; b. Verify that time tickets have been appropriately authorized; c. Recalculate salaried employees' monthly pay and compare to the payroll records; d. d. Recalculate salesmen's commissions and compare to payroll records; e. Recalculate payroll deductions based on government payroll tables and the data listed on the W-4 form filed by each employee. Compare these deductions to the company's payroll records; f. Recompute Lakeside's payroll taxes and compare to total reported balance; g. Verify mathematical accuracy of net wage figures (salary less deductions); h. Foot the...
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...Valuation and Capital Budgeting For Levered Firm Analisis leverage operasi dan leverage keuanga. Contoh pada rumah sakit swasta (tujuan profit). Konsep operating dan financial leverage adalah bermanfaat untuk analisis, perencanaan, dan pengendalian keuangan leverage adalh penggunaan assets dan sumber dana oleh rumah sakit yang memiliki biaya tetap dengan maksud agar meningkatkan keuntungan potensial pemegang saham rumah sakit menggunakan operating dan financial leverage dengan tujuan agar keuntungan yang diperoleh lebih besar daripada biaya assets dan sumber dananya, dengan demikian akan meningkatkan keuntungan pemegang saham sebaliknya leverage juga meningkatkan variabilitas (resiko). Biaya variabel adalah baiaya yang dalam jangka pendek berubah karena perubahaan operasi rumah sakit contoh: biaya bahan baku, biaya tenaga kerja langsung dan biaya pemasaran langsung biaya tetap adalah biaya yang dalam jangka pendek tidak berubah karena variabilitas operasi (tingkat output yang dihasilkan) maupun penjualan. Contoh: depresiasi bangunan kantor dan pabrik, kendaraan, peralatan kantor, asuransi kecelakaan, kesehatan, dan gaji manajer). Penggunaan operating leverage rumah sakit diharapkan bahwa perubahaan penjualan jasa dan produk akan mengakibatkan perubahan laba sebelum bunga dan pajak yang lebih besar multiplier effect hasil penggunaan biaya operasi tetap terhadap laba sebelum bunga dan pajak disebut dengan degree of operating leverage (dol). Dol dapat juga didefinisikan sebagai...
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...appeared in an earlier time on his life he was clever at maths and science. So, his father interred him to lakeside school which knawn by its own outstanding academic. In this school Bill Knew the computer for the first time. In the spring, of 1968, the school decided to boy a computers. Computers in this time ware large and expensive. The school has been unable to buy a computer. So, it decided together some money from father as a donations. From that moment he become found of computer. He was student in the eighth grand at that time. He spent a lot of his time in the computer room at school. He was busy with writing programs and apply them to the point that he neglected his homework and absent from school in some cases. After that. Bill and his friend interested in computers and can make many programs like bisak he realized that the age of personal computer will began. Although Bill gates was clever and dose his best with computers, he faced great difficults in dealing with staff. He was impatient and faces of people quickly. Bill be lives that if you're smart and know how to use your inelegance, you can a chive the impossible. It is worth mention that Bill Gates chose Egypt as an Arab Country and it is his first visit to the middle East in 2004 despile the angry of Israelis. Then, Bill and his friend read ad in Altair 8080, the first 5 mall computer. Made by a company MILS. The call with Eed and Reports the owner of MILS and they told him that they had developed a program...
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...(7 marks) (b) State whether the current law adequately caters for the present day demands of commerce in Zimbabwe. (3 marks) (10 marks) 3 In relation to the law of contract: (a) Explain the term breach of contract and the forms it usually assumes. (5 marks) (b) Briefly explain the major remedies available for breach of contract in Zimbabwe. (5 marks) (10 marks) 4 ‘The concept of estoppel is invoked to establish ostensible authority in cases of agency . . .’ Required: Explain the nature and function of estoppel in a contract of agency. (10 marks) 5 In relation to company law: (a) State the restrictions that are placed upon the right of a promoter to select a name for a company. (6 marks) (b) State the restrictions that are placed upon the right of a company to change or alter its articles. (4 marks) (10 marks) 6 In relation to company law, explain the duties and responsibilities of a director to the company. (10 marks) 7 In relation to insolvency: (a) Define the concept of insolvency and state instances where an act of insolvency is committed. (5 marks) (b) State the circumstances under which a person who has been declared insolvent can...
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...of college. She is anticipating a large expense on books but is hoping to save some money on purchasing school supplies by looking at discount retailers instead of the college bookstore. Misty has found two companies, Company A and Company B, with some great back to school deals on school supplies. Company A is offering ten percent off each dollar spent on school supplies with no minimum purchase required. While that sounds like a great deal, Company B is offering twenty-five percent off all school supplies purchased after spending an initial one hundred dollars. While both options offer a great discount, Misty wants to determine which would save her the most money. Before moving any further, Misty must determine what her total bill for school supplies might be by identifying the items she will need to purchase and then totaling the final cost. Once that has been ascertained, she will need to calculate the possible savings on each plan to determine which one will be most cost effective. Task B In order to calculate the savings, Misty is going to let (y) represent to total cost of her school supplies after all discounts have been applied. She will use (d) to represent the discount percent she is going to receive from the company. As prices from each company are comparable, she has calculated the total cost of her school supplies to be $230.00 which will be represented as the variable (x). The following is an...
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...of college. She is anticipating a large expense on books but is hoping to save some money on purchasing school supplies by looking at discount retailers instead of the college bookstore. Misty has found two companies, Company A and Company B, with some great back to school deals on school supplies. Company A is offering ten percent off each dollar spent on school supplies with no minimum purchase required. While that sounds like a great deal, Company B is offering twenty-five percent off all school supplies purchased after spending an initial one hundred dollars. While both options offer a great discount, Misty wants to determine which would save her the most money. Before moving any further, Misty must determine what her total bill for school supplies might be by identifying the items she will need to purchase and then totaling the final cost. Once that has been ascertained, she will need to calculate the possible savings on each plan to determine which one will be most cost effective. Task B In order to calculate the savings, Misty is going to let (y) represent to total cost of her school supplies after all discounts have been applied. She will use (d) to represent the discount percent she is going to receive from the company. As prices from each company are comparable, she has calculated the total cost of her school supplies to be $230.00 which will be represented as the variable (x). The following is an algebraic...
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...determination. Southwest’s operations involves low cost methods to get customer to places while the culture focuses on promotion of its satisfaction-based culture- both internally and externally; people seem to love giving into the company more than they love the company’s returns. A big airline is most likely to be the competitor. It is very likely that the corporation can introduce a system of short-haul, cheap flights via a standardized fleet with ease. The billions in revenue generated from other divisions can provide the capital required; they can even have the option to operate at a loss for a while. The question, then, turns to one of sustaining this division by attracting customers from companies like Southwest. Besides setting low prices and attempt to maximize efficiency, the question becomes: can the division’s efficiency outstrip that of Southwest’s? As stated, Southwest’s culture inspires employees to work, thus productivity and efficiency increases. This is the key behind the company’s success: fostering culture and turning the results into profit. Can a big company replicate or build the culture? Replication is difficult because usually big wigs are reluctant to change their own culture of following rules to the letter like traditional big companies to an upbeat style of Southwest. Instead of satisfying customers, maximizing shareholder value takes priority and this choice could be detrimental to the divisions’ cause (shareholders may also not be happy at the prospect...
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...CORPORATE CULTURE SECRETS OF FIVE COMPANIES EMPLOYEES LOVE How innovative companies are creating ways to build company culture while seeing tangible benefits. INTRODUCTION Creating the right culture for your company could be the best investment you ever make – and often, it doesn’t cost a dime. The world’s most innovative companies find hidden value by operating outside of established business culture. Time and time again, competitors are left asking, “How did they do that?” CORPORATE CULTURE SECRETS OF FIVE COMPANIES EMPLOYEES LOVE The answer is simple: Culture. The right culture fosters innovation, finds talent in unexpected places, and empowers employees at all levels. There isn’t a one-size-fits-all solution, but the following examples from leaders of innovative company culture will help you adopt a mindset that inspires greatness. /02 CORPORATE CULTURE SECRETS OF FIVE COMPANIES EMPLOYEES LOVE FOSTERING INNOVATION WHILE DEVELOPING EMPLOYEES If you get the culture right, most of the other stuff will just take care of itself. Tony Hsieh, Founder and CEO, Zappos.com /03 FOSTERING INNOVATION WHILE DEVELOPING EMPLOYEES Ideas From Everywhere (IFE) is a program for CareerBuilder employees, launched nearly 8 years ago as part of a company decision to adopt a strategy centered on innovation. In essence, employees are encouraged to submit their ideas for new businesses within the company. Their fellow employees are then asked to vote for the best idea...
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...Although the imminent success in the last few years,some issues have brought the company down. The pending issues that are troubling the company are the employees conditions abroad, the buying of reebok and it's sales drop last year 2012. In the website oxfam, which analyses the conditions of workers abroad, it is stated:" we asked Adidas to implement worker's rights in Indonesia". (Oxfam 1). The complaints relate to the the ongoing problems of not matching wages with the rising prices of food and supporting work abroad. This can become a greater issues because most manufacturing is done abrasive and foreign countries could rebel against western companies hence slowing down productions or damaging products. Source: https://www.oxfam.org.au/explore/workers-rights/adidas/talking-with-adidas/ Another issue is the acquisition of Reebok, although buying another company cuts competition it also bring greater responsibilities. According to article on sportsdailybusiness.com Adidas has not gained any profit from Reebok rather loss. As it states in the article that since the acquisition in 2006, Adidas has struggled to raise to power the brad, commercial irregularities have been caught and it has suffered through the NHL lockout. Buying companies may eliminate competition but can bring great loss to the company if the other company itself is doing midly poor. Source: http://m.sportsbusinessdaily.com/Daily/Issues/2012/11/09/Finance/adidas-Reebok.aspx Lastly but not least...
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...Examination Paper ESI Companies is a small company in Bartlett, Tennessee. ESI Companies is proud of their credit of providing tactical security specialist, and solutions to relieve threats to the environment. They install and build security systems in courthouse, detention facility, transportation hub, office building, and production plant. The company has partnered with private industry, law enforcement, military agencies, and correctional and detention facilities to keep their operating environments safe and secure from the threats of criminal activity and terrorism. Organizational Structure ESI Companies small business organizational structure is or can be a partnership. They are comfort of knowing their professional posses the needed skills and expertise to assist with the customers design and build techniques with courthouse, detention facility, office building, production plant, and others. They also partner with customers for facilities renovations, and maintenance of their security system regardless of any unique and challenging security needs. ESI Companies requires the customer partner in the design and implementation of their standards of operation intended to reduce the risks of security catastrophes. ESI Companies believe in working together to design, implement, build, install, and support state – of – the – art electronic surveillance and security equipment for the business run smoothly and successfully. Management and Leadership ESI Companies employs culturally...
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...Times| More |Log In|Join| Stocks ------------------------------------------------- Top of Form NewsStock Quote Bottom of Form ------------------------------------------------- Top of Form | | Bottom of Form | | Home News Markets IPO Personal Finance Mutual Funds Tech Jobs Opinion Features Blogs Slideshows ET PortfolioET SpeedET NOW Stocks Market Live Regulation Global Markets Forex IPOs/FPOs/Rights issues Bonds Money Markets Commodities Real Estate Analysis Market NewsStocks in NewsViews/RecommendationsStock QuotesMarket Calendar You are here: ET Home » Markets » Stocks » Stock Quotes » KCP Sugar & Industries Corporation Ltd. » Directors report * Summary * Prices * Financials * Reports * Company Info * News * Competitors * ET Buzz Tracker New Directors ReportChairman's SpeechFinished Products KCP Sugar & Industries Corporation Ltd. BSE: 533192NSE: KCPSUGINDEQ58888: kcpsi IND: SugarISIN code: INE790B01024SECT: Sugar BSELIVE03:40 PM | 26 Apr 2013 18.00 Change: -0.25(-1.37%)Volume: 4,357 Open: 18.35Prv. Close: 18.25 Today: 17.95 52-Wk: 14.50 18.35 26.00 Bid: 0.00(0) Offer: 0.00(0) NSELIVE03:31 PM | 26 Apr 2013 18.05 Change:-0.25(-1.37%)Volume: 17,561 Open: 18.25Prv. Close: 18.30 Today 17.80 52-Wk 14.70 18.50 26.05 Bid: 0.00(0) Offer: 0.00(0) You can view full text of the Director's Report for KCP Sugar & Industries Corporation Ltd. Director Report Mar2011 Mar...
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...information form several key employees within the organization in order to determine whether the merger will be profitable and allow the company continued growth. This analysis will include supporting calculations regarding the two companies becoming one. | Ladies and gentlemen I have been given the task of providing my recommendations as to our company (Merck), acquiring Medco. An evaluation of both companies will be completed so that I can provide accurate feedback as to the pros and the cons of the proposed merger. There will also be an analysis performed to determine the cost effectiveness and the potential synergy of the combined companies. Included in this recommendation you will find a (DCF) discounted cash flow, this will determine whether or not the post-merger company will have the ability to overcome any opposition that be in question. I will also be discussing the proposed strategy that we intend to take, should we agree to the merger. We will explore what works well for each organization and the best way to combine those efforts to maximize on continued growth for the organization. We here at Merck, being the world’s largest drug manufacturer and leader of research and development efforts, have determined that there has been tremendous growth in the area of managed care. Medco is the leading prescriptions benefits Management Company and marketer of mail order pharmaceuticals. It is noted that, experts predict that “90% of Americans will have drug costs included...
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