...reading the exposure draft and the first ten comment letters from the FASB website, I argued that the exposure draft should be adopted. Before the exposure draft were issued, FASB received some respondents criticized the original dislosure requirements of loss contingencies: “a.The initial disclosure of specific information about a loss contingency often does not occur until a material accrual is recognized for that loss contingency, sometimes taking investors by surprise. b. The at least reasonably possible threshold for disclosing loss contingencies has not resulted in the disclosure of the full population of an entity’s existing loss contingencies that would be of interest to financial statement users. c. The amounts recognized in the financial statements related to loss contingencies are not transparent to users. In order to improve the disclosures about certain loss contingencies, such change of standards is necessary.” In response to this concern, the Board made two roundable discussions and got some feedback from respondents and finally issued an exposure draft stating that “An entity shall disclose qualitative and quantitative information about loss contingencies to enable financial statement users to understand all of the following: a. The nature of the loss contingencies. b.Their potential magnitude. c.Their potential timeing (if known).” It is reasonable the Board revised some proposal in insponse to the comment letters from respondents. For example, respondents argued...
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...Smart. Smart & Lee PPC 1212 Third Ave, Suite 300 Bellevue, Florida 25515 Jim Knott Easy Construction 305 Hanford Ave Richland, Florida 25518 Dear Mr. Knott: I am writing this letter to assist you in understanding the initial process of your lawsuit up to the filing of the complaint with the court. Your lawsuit will be governed by the Florida Rules of Civil Procedure. The following information is the process that will be followed during our preparation for your case. Once all relevant information concerning the circumstances surrounding your case, the next step will be performing legal research. My paralegal, name , “will be spending a considerable time researching, preparing documents, interviewing clients, and consulting with the attorney on civil litigations matters” (Cheeseman & Goldman, 2008). A litigation file will be created to put all relevant the documents and recording regarding your case. With everything about your case in a litigation file will help all parties involved in your case easy access to all the information about your case (Hames, Kerley & Sukys, 2009). Once all information is gathered and verified complaint will be drafted. The complaint will consist of the caption of the case, which is the heading, title, inscription and the allegation. The lawsuit will start once I file the complaint with the court in the correct Jurisdiction. If you have any questions please do not hesitate to call me, 1.800.432.9876 and we can sit up a time...
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...financial audit refers to the verification of the financial statements of a company by an audit firm in order to express a professional opinion regarding their credibility. This process begins when a client approaches the auditor if deemed reputable the auditor accepts he begins by planning how to carry out the audit. This is done by assessing several factors such as risk, materiality etc. and then obtaining feedback in order to draw up the audit plan. At this point an audit team is assembled based on the audit strategy who visit the clients premise to carry out the procedures agreed upon in the planning stage through practical work or field work. Once enough evidence is accumulated to support the auditor’s opinion a draft audit report is drawn up. The client is contacted after this and feedback is obtained to make final necessary adjustments. Once finished the final audit report is issued which expresses the auditors professional opinion and recommendations, depending on the issues at hand a follow-up review may be carried out afterwards to see clients progress in adopting the suggested changes thus concluding the audit process. Table of Contents Particulars | Page # | Introduction | 3 | Stage 1: Planning | 3 | Step 1: Notification/Engagement Letter | 4 | Step 2: Audit Strategy | 4 | Step 3: Initial Meeting | 4 | Step 4: Planning Analytical Procedures | 5 | Step 5: Risk, Materiality and Control assessment | 5 | Step 6: The Audit Plan | 5 | Stage 2: Fieldwork |...
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...Project STUDENT: Chien-Yun Tseng UTD ID# 2021195349 Table of Contents INTRODUCTION................................................................ 3 CHAPTER1. THE CLIENT ACCEPTANCE /CONTINUATION PROCESS, INCLUDING ESTABLISHING AN UNDERSTANDING WITH THE CLIENT ... 4 CHAPTER2. OBTAINING AN UNDERSTANDING OF THE ENTITY AND ITS ENVIRONMENT, INCLUDING INTERNAL CONTROL .................................. 5 CHAPTER3. PRELIMINARY ENGAGEMENT ACTIVITIES ....................... 8 CHAPTER4. ASSESS RISKS AND ESTABLISH MATERIALITY ................. 9 CHAPTER5. CONSIDER INTERNAL CONTROL .................................... 10 CHAPTER6. PLAN THE AUDIT ............................................................ 13 CHAPTER7. COMPLETE THE AUDIT ................................................... 16 CHAPTER8. EVALUATE RESULTS AND ISSUE AN AUDIT REPORT .... 17 REFERENCE ............................................................................................. 18 INDEPENDENT AUDIT REPORT................................................................ 19 ENGAGEMENT LETTER………………………………………………………..20 FINANCIAL STATEMENT .......................................................................... 22 2 INTRODUCTION The history of the Krispy Kreme began in the mid 1930s. Vernon Carver Rudolph, the founder of Krispy Kreme, with his father and brother...
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...Smackey Dog Foods, Inc. was started by three sisters in their home in the suburbs of Chicago. They built a company based on an idea of making exceptional natural dog food not only for their dogs but also for their community. Its popularity grew and they expanded their business to opening a boutique division named Best Boy Gourmet, with food that must be consumed no later than 3 days after its production. This was the beginning of some issues that as the company grew, these issues grew also. Major Issues. There is a lack of solid internal controls in Smackey Foods based on the trust that is being put into certain employees to complete their positions. Some indicators were present that would have indicated that the internal controls should have been appropriately applied. These indicators are waste issues, sales projections being off 11%, and accounts receivable. The first issue that is found with Smackey Foods, is the fact that there is a lot of waste and it is mentioned a couple times within the narrative. It is odd that even though demand seems to be high that the waste is also high. Since they rely on fresh ingredients they are putting themselves in a precarious position that would put them in a stance to fail in the winter months. If one ingredient is unattainable or late, it can spoil the rest of the materials, which is one indicator why waste is so high. They should have invested in equipment such as refrigeration storage, to keep the materials fresh. Then...
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...them have a better handle on their operations. Although the company is not required to follow SEC regulations, the auditors are still required to follow the audit standards in place with the passing of Sarbanes Oxley. Audit planning is very important. The initial audit planning should be done in the early stages of the audit. The auditor must determine whether to accept the client. It is late in the year to accept new clients, and there are also some major issues with the way the company is being run, in spite of these challenges; Keller CPA’s has agreed to accept Smackey Dog as a client. The second stage in audit planning is to determine why the audit is needed. Since Smackey Dog is not publicly traded, there is no law that requires the company to get a yearly audit. This audit is needed because Smackey Dog is attempting to qualify for a bank loan. Sarah, the CEO of Smackey Dog has met with her banker to attempt to qualify for a $150,000 loan to expand the facilities and equipment. There will be no required reporting to the SEC or stockholders. The bank has already loaned Smackey Dog $150,000 so they need to know that the company is financially stable so that they will not only be able to pay back the initial loan, but they can qualify for the additional $150,000. The third stage in audit planning is to obtain an understanding of the terms of the...
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...MANC_C03.qxd 08/01/2007 10:42 AM Page 95 Atlanta Home Loan Case Study Atlanta Home Loan THE COMPANY Atlanta Home Loan (hereafter AHL) was a mortgage lending and financing company based in Atlanta, Georgia. Al Fiorini founded the company in April 2002 with an initial investment of about $40,000. He started operating the company from his home. Al had many years of experience in the mortgage lending industry. He had worked for several different companies and had also served a year as president of the Orange County Chapter of the California Association of Mortgage Brokers. Under his direction, AHL’s business grew rapidly in its first quarter of operation. By the summer of 2002, the company consisted of four telemarketers and eight loan officers, all of whom worked from their homes. “Telecommuting” was convenient for the employees because Atlanta was a large city with heavy traffic. Al established banking relationships that allowed AHL clients to borrow money at wholesale rates. The actual loan terms varied depending on the clients’ FICO scores.1 In summer 2003, banks might offer an AHL client with a very high FICO score (over 620) a rate of 6.25–6.75% on a fixed 30-year mortgage. This rate provided the bank with an operating margin of 1.5–2.0%. AHL earned a fee of 1.50% of the loan amount for every loan funded. This provided AHL with an average revenue per loan of $3,200. AHL bought leads from list brokers for $0.20 per name. These lists provided...
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...during the audit of Smackey, Keller CPA is subject the six generally accepted auditing standards established by the Auditing Standards Board (“ASB”) under the Accounting Institute of Certified Public Accountants (“AICPA”) which includes the ten standards of auditing. 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: Audit planning includes eight major parts, of which the first seven are intended to help Keller CPA to establish the eighth, which is to develop an overall audit plan and audit program. They are as follows; Acceptance of the client and perform initial audit planning – Keller has already agreed to accept this client, although they should still try to assess Smackey with regards to other audit client of theirs. They should go through the usual client acceptance procedure which Keller CPA has in place and the decision to take on the audit should have been made before any substantial costs have been incurred. This decision should not be taken lightly and Keller CPA should ensure that they feel the client is appropriate to take on. The initial planning procedures that Keller CPA will go through included...
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...MINI-CASES | |Question | |Case |1 |2 |3 |4 |5 |6 |7 | | | | | | | | | | |1. Andersen: An Obstruction of Justice? |C.83 |C.83 |C.83 |C.83 |C.83 |B.63 |C.83 | |2. PTL Club—The Harbinger of Things to Come | | | | | | | | |3. GM |11.74 |11.74 |11.74 |11.74 |11.74 |11.74 | | | |12.65 |12.65 |12.65 | | | | | | | | | | | | | | |4. Unhealthy Accounting at HealthSouth |4.64 |4.64 |5.70 |5.70 |C.82 |G.84 | | | | | | | | | | ...
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...individual U.S. farmers for patent infringement and/or breach of contract in connection with its genetically engineered seed.[130] The Center for Food Safety has listed 112 lawsuits by Monsanto against farmers for claims of seed patent violations.[131] The usual claim involves violation of a technology agreement that prohibits farmers from saving seed from one season's crop to plant the next, a common farming practice.[132] One farmer received an eight-month prison sentence for conspiracy to commit fraud during litigation with Monsanto[133] in addition to having to pay damages.[134] Monsanto sued the Pilot Grove Cooperative Elevator in Pilot Grove, Missouri, on the grounds that by cleaning harvested seeds covered by Monsanto's patents so that farmers could replant them, the elevator was inducing them to infringe Monsanto's patents. The Pilot Grove Cooperative Elevator had been cleaning conventional seeds for decades before the development of genetic engineering and developments in patent law led to the existence of issued patents that cover seeds.[135] In one case in 2002, Monsanto mistakenly sued Gary Rinehart of Eagleville, Missouri for patent violation. Rinehart was not a farmer or seed dealer, but sharecropped land with his brother and nephew, who were violating the patent. Monsanto dropped the lawsuit against him when it discovered the mistake.[135] In 1997 Percy Schmeiser discovered that canola growing on his farm was Roundup resistant. He had initially discovered that...
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...beginning to end. Obligatory Disclaimer: This document was prepared by UCAN's staff and interns and was not written or edited by an attorney. This document does not constitute legal advice. It is simply a guide designed to advise you of your rights under the 1992 TCPA, which gives ordinary people the ability to take legal action in Small Claims Court against companies that violate the law. If you need legal advice, please consult an attorney. Table of Contents Letter from UCAN Executive Director Michael Shames / Introduction……………………….2 Violations for which telemarketers can be sued………………………………………………....3 What to do when you are solicited / Who can you sue?…………………………………………4 “Strike Back” Anti-Telemarketing Script………………………………………………………..5 Controlling the call: a sample conversation……………………………………………………...6 Using “rejection psychology” to your advantage………………………………………………..7 Sample letter to a telemarketer suspected of breaking the law…………………………………8 F.I.S.T. Anti-Telemarketing Program……………………………………………………………9 “Hired Gun” Sample Letter……………………………………………………………………...12 Arkow v. Bank of America……………………………………………………………………….13 UCAN’s Fraud Squad…………………………………………………………………………….15 http://www.ucan.org From The Desk of Michael Shames Dear Fellow Telemarketing Victim: You are awakened by a ringing phone, but when you answer, nobody is on the line. Then, just as you drift off to sleep, you get another call. This time there is a voice on the line, but while they seem to know you, you don’t recognize...
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...influence on their audit. During the audit, Keller CPAs will still need to follow the auditing standards put in place by the SEC. AICPA principles will be followed, ensuring that the Keller CPAs are independent of the client and free of conflicts of interest when performing professional responsibilities. Q2 Discuss the essential activities involved in the initial planning of an audit. How do these all specifically relate to the Smackey Dog Food client? SOLUTION: 1. Understand the client’s business and industry. Keller CPAs can use its experience from auditing other manufacturing companies in the audit of Smackey Dog Foods, Inc. The essential part of this step is for the audit team to learn and understand as much as possible of the client’s business and industry. All related parties will be identified in this stage of the planning as well. 2. Assess client business risk. The business risk involved is that Smackey will fail to achieve its objectives. The audit team will assess the risk of material misstatements arising from Smackey’s business risk. 3. Perform preliminary analytical procedures. The function of the auditors here will be to compare the performance of the client to that of the industry, which will help support the assessment of the clients’ business risk, and to identify...
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...its practice of giving preference to paid advertisements over organic search result. This practice came tohaunt Baidu when China¶s state run CCTV network reported in November that some patients sought care from unlicensed pharmaceutical companies because they appearedhigher on Baidu¶s search results. Baidu¶s stock took a 25 percent hit in one day xiv and thecompany cut its fourth quarter revenue forecast by 15 percent. Baidu quickly removed theunlicensed companies from its results and on March 29 th , 2009, it announced it woulddrop paid search rankings completely xv .Baidu¶s search problems do not stop there. Some former Baidu clients claim the searchengine dropped their web sites after they stopped buying search ads from Baidu xvi . Baiduhas denied these accusations, but a group of more than 50 companies are planning tolaunch a lawsuit against Baidu for anti-trust, fraud, and infringement violations xvii . Baiduis also allegedly complicit in another Chinese corporate scandal: a leaked documentshows Sanlu, the dairy company responsible for the melamine milk crisis, offered to payBaidu to bury negative publicity xviii . Baidu denied it took any action.In the short term, the damage has been done. Baidu saw its first sequential decline inquarterly sales since the company became public xix . Google was able to make gains in theonline advertising...
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...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. The auditor decides whether to accept a new client or continue serving an existing one. This determination is typically made by an experienced auditor who is in a position to make important decisions. The auditor wants to make this decision early, before incurring any significant costs that cannot be recovered. 2. The auditor identifies why the client wants or needs an audit. This information...
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...| the changing landscape of background investigation in hr | OBJECTIVE: To know the need for background investigation in hiring a candidate. Through this paper, we bring out the logic behind the investigations and discuss some cases to corroborate that logic. Laws and rules governing the investigations will also be looked into. Some of the best practices will then be discussed as a practical approach to the issue. DEFINITION: A background check or background investigation is the process of looking up and compiling criminal records, commercial records and financial records of an individual or an organization. REASON: Litigation problems can arise if employees have an incorrect background to them. Every employer has a legal duty to exercise due diligence in hiring and protecting its employees and assets. Estimates are that 30%-40% of job resumes includes some false or inflated facts. Additionally, some Federal and State Laws require background checks be conducted for certain positions. Background checks are often requested by employers on job candidates for employment screening, especially on candidates seeking a position that requires high security or a position of trust, such as in a school, hospital, financial institution, airport, and government. These checks are traditionally administered by a government agency for a nominal fee, but can also be administered by private companies. Background checks can be expensive depending on the information requested. Results of...
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