Auditing Essay

Justin Kealey, CPA, is auditing Tustin Companies, Inc. Kealey has accumulated known and likely misstatements for the current year to evaluate whether there is a sufficiently low risk of material misstatement of the financial statements to issue an opinion. However, Kealey notes that there are several misstatements that have been carried over from prior years. A .Distinguish between the iron curtain and the rollover approaches to considering the misstatements from prior years. In consideration of an auditor’s approach for considering the effects of misstatements from prior years are the iron curtain and the rollover approach. The iron curtain approach reveals the effect of correcting the misstatements whole amount in the present year irrespective of when the misstatements occurred. The rollover approach reflects only the amount of misstatement originating in the existing income statements. It ignores the effect of misstatements caused within the balance sheet. B. Describe how SEC Staff Accounting Bulletin No. 108 requires auditors to consider misstatements carried over from prior periods. SEC, Staff Accounting Bulletin No. 108 in reference to materiality states that auditors consider both the iron curtain and rollover approach. Auditors suggest whenever making corrections of material misstatements in financial statements that corrections are made with the iron curtain or rollover approach. The following are typical questions that might appear on an internal control questionnaire for payroll activities: 1. Is there adequate separation of duties between employees who maintain human resources records and employees who approve payroll disbursements? It is important that originations separate human resources and support function as it enables prevention of payments to fictitious employees and overpayment of payroll amounts. Therefore, distribution of payroll accounts involve things such as scheduling, time sheet verification, employee information, and tax obligations just to name a few responsibilities. 2. Is there adequate  separation of duties between personnel who maintain timekeeping or attendance records for employees and employees who distribute payroll checks? When utilizing the same employees executing the timekeeping and distribution, the organization is providing these individuals to report attendance of employees that have resigned and write their own checks. The thought of combining the timekeeper and payroll employees should never be done. Separating responsibilities as management and supervisors create scheduling and time management should be electronically formatted to maintain and avoid fraud. a. Describe the purpose of each of the above controls. Separating responsibilities as management and supervisors create scheduling and time management should be electronically formatted to maintain and avoid fraud. b. Describe the manner in which each of the above controls might be tested. The separation of duties is established by inquiring for which employees perform particular tasks during year, and become aware of the personnel carrying out such tasks. The auditors should inquire upon which personnel accomplished their assigned tasks under uncommon circumstances, for example during the prolonged illness of a worker. c. Assuming that the operating effectiveness of each of the above controls is found to be inadequate, describe how the auditors might alter their substantive procedures to compensate for the increased level of control risk. The testing of fictitious payroll transactions brings the auditors to analyze the distribution of paychecks on a random basis. Analytical procedures performed in reference to payroll expenses may invol ve comparing the amount budgeted for the year to the comparable amounts of previous years and could reveal a substantial overstatement of staff payroll expenses. While performing your audit of Williams Paper Company, you discover evidence that indicates that Williams may not have the ability to continue as a going concern. a. Discuss types of information that may indicate substantial doubt about a client’s ability to remain a going concern. Circumstances presenting doubt in the client’s ability to achieve and maintain business performance begin with working capital deficiencies. More problems for concern may be recurring operating lost, arrears in dividend, defaulting on loans and  adverse financial ratios. The economy can cause business lost as loosing principal customers, work stoppages, legal problems, and inside staff members affecting the business meeting its standards. b. Explain the auditors’ obligation in such situations. Information contradictory to an assumption that a CPA firm’s client remains a growing concern is generally relates to the company’s ability to satisfy its financial commitments For each of the following brief scenarios, assume that you are reporting on a client’s financial statements. Reply as to the type(s) of opinion possible for the scenario. In addition: Unless stated otherwise, assume the matter involved is material. Thomas Bros. Construction is involved in a hazardous trade on a work project and has obtained insurance coverage related to the hazard. Although the probability is remote, a material portion of the company’s assets could be destroyed by a serious work related accident. A standard unqualified report is issued. If the problem does not state that a misstatement (or possible misstatement) is pervasive, assume that it may or may not be pervasive (thus, the appropriate reply may include two possible reports). The Lowes’ own considerable amount property that has gained significantly in value since the date of purchase. The properties were appraised and reported in the balance sheet at the appraised values that materially exceed costs with related disclosures. The certified public accountants believe that the appraised values reported in the balance sheet are a realistic value of the assets. This scenario can receive either an adverse or a qualified judgment. Valuation of assets at appraised values is not in the standards presented in the general accepted accounting principles (GAAP). The appraised value and cost is important, an unqualified opinion is not be appropriate. Do not read more into the circumstance than what is presented. While conducting an audit of Armstrong Co. the CPA firm encountered a major scope limitation relating to inventory report availability and cannot gather sufficient qualifying audit evidence for that area. A scope limitation will result in a qualified opinion or a disclaimer of opinion. Do not consider an auditor discretionary circumstance for modification of the audit report unless the situation explicitly suggests that the auditors wish to emphasize  a particular matter. Noble Co. has material investments in stocks pertaining to subsidiary companies while are not actively traded in the market. The participating CPA firm performing the engagement does not extend to any subsidiary company. The CPA firm is able to determine that all investments are carried at the original cost, but it has no idea of the actual market value. Although the difference between cost and market could be material, it may not have a pervasive effect on the overall financial statements. Here is a scope limitation therefore; either a qualified opinion or a disclaimer of opinion is appropriate. Report Types may be used once, more than once, or not at all. Williams Co. also has material investments in stocks of subsidiary companies however; the stocks for in this scenario are of subsidiary companies which are actively traded in the market. Management insists that all investments are carried at the original costs, and the CPA firm is satisfied that the original costs are accurate. The CPA firm believes that the client does not realize a substantial portion of the investments because the market value is muc h lower than the cost. The client disclosed the facts in notes accompanying the financial statements. A qualified opinion is necessary. The CPA firm attained sufficient evidence stating investments in subsidiary companies are overstated and the note disclosure does not compensate for inappropriate balance sheet presentation. Reference Whittington and Pany, Chapter 16, Auditing Operations and Completing the Audit, Chapter 17, Auditor’s Reports, Principles of Auditing & Other Assurance Services, 18th edition, T, Legal Liability of CPAs McGraw-Hill Irwin

Duties of Sales Assistant Essay

To be a responsible sales assistant, the frontline workers need to recognize the Inherent Power of their Professional Presence and start establishing effective nonverbal Communication. Creating their own virtual presence is important as well. For the store manager to lead effectively, they need to demonstrate good leadership skills and be engaged in the workplace. As a sales assistant with the following duties and responsibilities , they are responsible for assisting and providing support to the sales manager of the organization , responsible for solving all the queries and problems of the employees , developing and implementing new strategies and plans in the sales department to improve work quality and providing report to the sales manager . Sometimes they also can motivate all the employees in achieving all the targets and goals of the company . Some company they increase the performance of the sales department by 30% to motivate the sales assistant . Maintaining a good work environment in the department this may help the sales assistant to work better and they will want to come to work everyday . To survive in today’s competitive climate , organizations must provide good service . Employees who have direct contact with the customer , client , or patient play a key role in the area of service. Effective frontline employees are able to express a warm , sincere greeting , display a caring attitude and provide competent service . The first impressions is very important for the customers must be aware of your appearance and display good communication skills, both verbal and nonverbal and also establish the value you provide . On the 29th of October we went to Queensbay Mall to survey around. We went to Forever 21 boutique first and once we walk in to their shop, 15-20 sales assistants can be seen. Forever 21 butik they sell ladies fashion wear and their price is above average . Example like a dress is around rm 150-200 . To continue my research, we requested to find the size that are not displayed. Immediately, they walked away without even greeting and were obviously reluctant to serve us, this strongly make us feel negative .The other sales assistants that are standing around the store acted like they did not see us and we were shocked about their rude attitude and service. As a customer, these kinds of attitudes cannot be tolerated and they should train their sales assistants to at least be friendly and willing to help. Apparently their sales assistants did many things that make us feel negative . At the same day , the second store that we went to is Body Glove. They selling male and female wear and it’s beach wear and also casual wear , the price of their clothes is average . Example like a t-shirt is around RM 40-50 .We were shocked but in a good way this time because the workers there are very friendly and helpful. When we could not find the size that we need, they smiled really cheerfully and got the sizes that we want in just a few minutes. As a customer, we felt very comfortable and bought a few apparels from Body Glove. These are the attitudes that they should practice and I will definitely visit Body Glove again. This shows that the sales assistant makes us feel positive about them . Greetings| All the sales assistant walking around the shop but there is one sale assistant stand at the entrance of the shop to say ‘Welcome’(Positive )| Once we walk into the shop they say out loudly ‘Welcome’ (Positive )| Attitude| The sales assistant are reluctant to answer enquiries, rude towards customers . (Negative )| The sales assistant is cheerful, helpful and willing to learn . (Positive)| Facial expression| All the frontline people smile to us but some sales assistant they act like they don’t see us.(Negative) | All the front line people include the supervisor in the shop smiling at us once we step into the shop .(Positive)| Communication skills| As we visit their shop , they dint tell us more about their promotions .(Negative)| Once we go in to the shop they will depends on what we see and promote us about their promotions . (Positive)| Presentation technique| They don’t even promote their promotions.(Negative)| They tell us clearly about their promotions and tell us which one is more worth it to buy . (Positive)| As showing by the table above we can clearly see that the difference between Forever 21 and Body Glove shop frontline people . The positive and negative experience are clearly shown in the table . Through this experience we can see that we get good service from Body Glove shop than Forever 21 . -Write abt the positive and negative behaviour Reference link : http://www.bestresumewriting.com/sales-assistant-resume-example.html

Dumbo Case Analysis

Hw Assignment #3: Two Trees 1) Continue organic growth in Dumbo – Rent vs. Sell? Walenta should continue organic growth in Dumbo. I believe that he should rent the space that he has this way he continues to have a foot in the neighborhood as it expands. As we know living in Manhattan has become very expensive and people are going right over the bridge to re-establish themselves and their business. It would be critical for Walenta to stay in Dumbo and continue to have an effect in the expansion of the neighborhood homes/businesses. 2) Develop a new neighborhood.I believe there is much potential in Red Hook and Walenta should develop a new neighborhood there. It has the same industrial/neighborhood feel that Dumbo has. This neighborhood has the potential to become like Dumbo and possibly even greater. The neighborhood is slightly larger than Dumbo and he would be able to buy and expand more. 3) Become partner in tenant's businesses. As a fall back he should decide to partner up with a couple of tenant’s businesses. As we know, the real estate industry has gone through many ups and downs in the last few decades.It is important for him to have something else to fall back on. The only thing he would have to consider is that if he decides to enter into these businesses if real estate does go down the businesses might slow down as well. 4) Encourage establishment of new businesses in Dumbo. Establishment of new businesses should be encouraged in Dumbo. It is definitally an up and coming neighborhood. People who don’t want to spend the money in the city look to come over the bridge to spend a little less and still have the same quality and feel.Also as more people move in the more new businesses are needy. I believe that another big reason people are coming to Brooklyn because it allows them to live the city life but also have a community feel, something that is hard to come by in NYC. NYC is very overcrowded and many of the neighborhoods donâ€⠄¢t have a community feel because of this. Brooklyn has the space and ability to make the neighborhood feel like a community. Small businesses will attract these city goers looking for a homey feel with the quality of life like that in the city.

Animals Essay Example | Topics and Well Written Essays - 1000 words

Animals - Essay Example Mostly compared in the debate on the best pet are cats, dogs, reptiles (turtle, tortoise, and fish). The other point worth noting is that each kind of pet has its own advantages and disadvantages and it depends on what its owner expects of it. In addition, the nature and behavior of a pet also determines whether it is the best or the most appropriate (Radford 24). For an illustration, a dog may be quite laid back by nature while one may acquire and keep a cat which has uncharacteristically high energy. Similarly, if one wants a pet to take a stroll, play, and go places with, then a dog would come highly recommended. On the other hand, cats are easier to care for and are thus recommended for pet owners interested in a more relaxed atmosphere while dogs are for fun and outdoor people. The comparison is however not always about dogs and cats; sometimes dogs and cats are compared with other kinds of pets such as reptiles and fish. In these comparisons, a good pet is defined on the basis of characteristics such as temperament and the ease of care and upkeep (Radford 43). Many pet lovers also concur that the best pet is not only gentle but also good natured and easy to take care of. This paper compares dogs and cats on one side and fish and reptiles on the other. Cats and Dogs versus Fish and Reptiles There are several advantages that dogs and cats have over reptiles, which make them better pets over the latter. Among the positive aspects of cats and dogs are loyalty, easy to manage, simple feeding/diet, easy to find feed, they are playful, and are fun to be with. However, there are several bad aspects of keeping cats and dogs as pets. For instance, they need medications/shots for diseases such as rabies, mange, cough, worms, and they must be licensed. In addition, dogs and cats need to be neutered and are costly. The main advantage of fish and reptiles such as lizards, tortoise, turtles, snakes, and fish is that they are kept in cages hence easy to keep and manage. Moreover kid, especially boys love reptiles. Since they are mostly in cages, they require little attention from their owners once they are fed and have few problems of running away from home. Nonetheless, there are several problems that make reptile pets a bit difficult to keep. That is, they may cause salmonella-related infections, more so to kids, who should always be kept away from such pets. The second problem with reptiles is that they require specialized diets and costly tanks and cages for fish, snakes, lizards, and turtles. These cages must also be cleaned as regularly as possible since reptiles, more so fish are rather delicate. The other pets often compared with cats, dogs, and reptiles are bunnies, which happen to be fun to play with for a lot of people. In addition, bunnies are easy to feed, smart, social, and play a lot, thus entertaining and easy to bond with. A rather boring aspect of keeping bunnies is that one cannot walk and play games such as â€Å"catch† o r swim with them. Further bunnies do not like being held a lot and are rather frail. From the mentioned advantages and disadvantages of cats, dogs, reptiles, and bunnies, it is clear that each pet has its own good and bad sides. As mentioned earlier, what determines the best pet is the owner’s personality, lifestyle, the nature of the pet, and the expected role of the said pet in the owner’s life. In fact, some people have compared pets to children. For example, for someone always working, with little or no time to take care of a pet, a cat would be highly recommended instead of a dog since cats are mostly indoors. This scenario presented by a cat is quite unlike the case of a dog,

Project Management. Zeropain Project case Essay

Project Management. Zeropain Project case - Essay Example Acquisitions offer one of the quickest ways for a company to grow and improve performance; they also represent the largest area of risk taking. The acquisition of Teutonia Pharma AG by Alpex was a case of a ‘horizontal’ (DePamphilis, 2002, p7) acquisition where both companies were in the same line of business with the intent of finding operational synergy and an effort to diversify into higher growth products and markets. The fact that Teutonia owned a licence from CPW for the European market made it an attractive preposition for Alpex. However, Alpex paid a premium on the basis of sales projections of a product which was not even tested by the original manufacturer. Roll (1986) argues that takeover gains are overestimated, if they exist at all. Any bids made over the market price represent an error and are made on the basis of an overbearing presumption by the bidders that their valuation is correct. The entire handling of Zeropain represents an attempt to justify the acquisition. The basic rules for the testing, positioning, promotion, and launch of a product were ignored by Alpex management – to disastrous consequences. New products are the ‘lifeblood of the research-intensive pharmaceutical industry’ (Taylor et al, 2002, p106-7). Given the huge cost of development, in this case the premium paid, and limitations placed on patent protection at the time of approval for marketing, the need to bring products to market quickly is very real

The Technological Stimulus of the Industrial Revolution Essay

The Technological Stimulus of the Industrial Revolution - Essay Example The technology that continued to drive the Industrial Revolution came in the form of invention and innovation. Invention, and the implementation of the invention, was merely the first step in the process. It is estimated that the period of invention terminated in 1780 (McCloskey 251). All progress after that date was due to innovations on existing technology. Initially, the textile mills located their factories near sources of water that were needed to drive the water wheel technology. The introduction of the steam engine radically changed the economics of the textile industry. No longer forced to relocate workers to the site of the source of power, manufacturers were free to build factories at the population centers that provided a ready supply of cheap labor. Aside from solving the labor issue, steam power was not subject to the changes in weather and seasonal variations that water was. Water was subject to drought and in the attempt to make up for losses in the dry period, water driven mills were often forced to employ child labor during high productivity periods. The loss of this labor source reduced the value of water. Though the cost of water may have been competitive, it could never be a reach the production levels of steam. Without the introduction of the invention of steam, the textile industry could never have reached an economy of scale. ... However, there were some major differences in the economy of the production of iron. Iron experienced an unprecedented level of growth in production during the period of 1780-1860. However, it did not see an improvement in the productivity that was noted in textiles (McCloskey 251). While the cost of textiles fell dramatically during this period, the cost of iron fell less sharply. McCloskey has attributed this to the rising cost of inputs, mainly coal, that were required in the production of iron (251). The production level of iron was spurred by improved technology, but an influx of capital could not significantly raise the level of productivity. The inventions and innovations also aided the high levels of production and improved productivity during the Industrial Revolution in transportation. Transportation not only increased trade, but also facilitated the transport of local raw materials and finished goods. While McCloskey puts the value of transportation during this period at about 6% of the national income, it may have been a resource whose dynamic effect is difficult to calculate (258). The development of roads and waterways was reflected in the overall cost of transporting cloth from a remote mill to a commerce center. The eventual reduction in the cost of transportation through technological improvements would further raise the level of productivity. Transportation moved the finished goods and allowed for the importation of raw cheaper materials. Critics, however, have argued that the peripheral economic benefits of transportation, including the expansion of trade, amount to very little (McCloskey 258). However, even outside the textile sector, exports grew among almost all manufactured goods though they were

Solution Description Research Paper Example | Topics and Well Written Essays - 750 words

Solution Description - Research Paper Example Primary interventions address coronary artery disease risk factors whilst secondary intervention addresses the health adverse outcomes. Patient’s safety can only be improved through medical adherence. This depends on the patient self-management such as lifestyle modification. All these need support from the health care system. Proposed solution From the survey conducted, it is evident that among the young males newly diagnosed with coronary artery disease, 70% of them have diabetes mellitus and hypertension in their medical history. In addition to that, 60% of these people smoke. However, they regularly carry out some physical exercise and do not have any idea of what coronary artery disease means to their health. This, therefore, means that they do not understand what is expected of them in order to contain the disease with reference to dietary. Given the fact that this population has no idea on diet, they have to be taught on what is expected of them. According to Hermida (2 011), changes in dietary can help in reducing the young men’s systolic blood pressure due to diabetes mellitus and hypertension in their medical history. The dietary factors that need to be considered by this group are reduced amount of salt intake and saturated fat contents. Adherence to these controls helps in managing hypertension and diabetes mellitus. Besides dietary changes, these individuals need to be encouraged not to smoke and also shun environmental smoke (Mosca et al., 2007). Compliance with lifestyle modification improves the patient’s quality of life via eliminating premature deaths and preventing further complications. To the patients’ immediate family, compliance relieves them of the negative psychological effects of losing their loved ones. Additionally, adherence conserves the resources of the family that would have been channeled in the obtaining of health care. Organizational culture: This section aims to illustrate how lifestyle modification , as the proposed solution, is consistent with the organization of resources and culture of the society. To the society at large, patient compliance with treatment is an effective measure of saving costs. This is because it decreases complications of incidents and the need for further medications. This is of great significance to the health care public financed systems. Compliance has a great impact on the health care system. For instance, it limits hospitalization needs and reduces workloads on the healthcare system staff. In addition, satisfactory outcomes of treatment boost the attending clinician’s morale whilst failure in treatment frustrates them and impacts their work delivery. Expected Outcome of the Project The expected outcome of the project is to improve the adherence of the patients to enhance their safety. The main reason is that chronic conditions such as the coronary artery disease need a lot of care. In addition, most of this care focuses on the patient self-m anagement. As a result, it requires complex multi-therapies and medical technology use for monitoring patient lifestyle change. Therefore, if these patients are not supported adequately by the health care system, they may be prone to risks that are life-threatening. The outcome will be achieved by educating the patients on lifestyle modifications such as the amount of salt intake, significance of physical activity, avoiding smoking, reducing the