Crazy Eddie, Inc. Question 1 Key ratios and other financial measures: |Pro Forma Balance Sheet Ratio |1984 |1985 |1986 |1987 | | |Account Receivable |7.12% |4.18% |1.77% |3.68% | | |Merchandise Inventories |63.83% |40.51% |47.16% |36.99% | | |Account Payable
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Employees are faced with various ethical decisions while working for companies. Many of these decisions should be determined by strong morals; however, the right decision is not always the easy decision. In the accounting world, auditors are faced with several ethical dilemmas including obligations employees have for the firm, obligations employees have to third parties, and conducting personal business on company time. ### Employees are hired to do something for the company. They obligate themselves to
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Sarbanes-Oxley Act of 2002 I. Introduction The Sarbanes–Oxley Act of 2002 (Pub.L. 107-204, 116 Stat. 745, enacted July 30, 2002), also known as the 'Public Company Accounting Reform and Investor Protection Act' (in the Senate) and 'Corporate and Auditing Accountability and Responsibility Act' (in the House) and commonly called Sarbanes–Oxley, Sarbox or SOX, is a United States federal law enacted on July 30, 2002, which set new or enhanced standards for all U.S. public company boards, management
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sufficiently independent to serve the public interest. Introduction As we will discover, the topic posed above is a complex one, which has many arguments both in favour and against the stability of the present regulatory environment in ensuring that the audits which auditors produce are indeed impartial enough to satisfy the public interest. We will first proceed in identifying the term “public interest” in light of the accounting and auditing profession. From this will be an explanation of what is the
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An HR audit is like an annual health check, says EJ Sarma. It plays a vital role in instilling a sense of confidence in the management and the HR functions of an organisation A healthy HR function in an organisation is as important as the physical and mental well being of a human body. Typically the basic reason why organisations prefer to conduct an HR audit is to get a clear judgement about the overall status of the organisation and also to find out whether certain systems put in place are yielding
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TOTAL QUALITY MANAGEMENT PRACTICE IN SMALL AUDIT FIRMS IN NIGERIA CHAPTER ONE INTRODUCTION 1.1 Background of the study Total quality management (TQM) practices in small audit firms have had accounting antecedence. The concept can be traced back to early 1920 production control idea notably, the concept developed in the late 1940’s and 1950’s, pioneered by American Feigenbaum, Deming and Juran. The concept total quality management (QTM) has many definitions. The gurus of total quality
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Audit Considerations PCAOB – Public Company Accounting Oversight Board Staff Audit Practice Alert No. 3 – Audit Considerations in the Current Economic Environment (December 5, 2008) Representation Letter A letter from management to the auditor representing that the financial statements are fairly presented. The letter is addressed to the independent auditor, and dated at the date of the auditor's report. It is signed by members of management whom the auditor believes are responsible for
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Executive Summary Imagine a world in disarray. Imagine many people suffering devastating losses from large investments in the securities market, once perceived as providing generous future returns. There have been several events in our nation’s history that have impacted the lives of many Americans. Recent scandals and related corporate failures have triggered new laws and increased regulation in order to restore confidence in the securities market and to provide reliable and accurate information
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CASE STUDY – FINANCIAL REPORT ANALYSIS Three Executives of a well-known multi-national company decided to form a new company, named New Star Company Limited in 1974. These three executives were becoming close to their retirement age. Pifco-Zen Chen Company Limited, the company that they worked for had been in business for the last 80 years. It was their previous employer’s policy to retire the executives with a “golden hand-shake” worth approximately US$120,000 each. The three executives occupied
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True, SOX has led to Nortel and other corporations taking the approval of management-prepared financial statements more seriously, second guessing management on issues like revenue recognition and asset valuation where no such questioning would have occurred before SOX. But treating fraud prevention as merely monitoring compliance with Generally Accepted Accounting Principles (G.A.A.P.) fundamentally misses the point that "fraud artists" are, by definition, masters of avoiding or evading any set
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