Through the establishment of a clear structure, recommendation of the internal audit team will be implemented and hence the company will realize improved performance.
To ensure that the internal auditing standards and other auditing standards are upheld, the company must come up with a way of continuously ensuring their internal audit staff attend conferences where training on standards are done. Implementation is only possible if the employees understand what is required of them and are acquainted with necessary materials on auditing standards. Auditing experts will then be engaged to evaluate the work of the internal audit staff to ascertain whether all standards have been conformed with. In areas where there has been failure of implementation, the staff responsible will be made accountable.
Implementation of the policies can also be done by ensuring that the management is charged with the mandate of facilitating the work of internal auditors in realizing their…… [Read More]
The amount and complexity of information created and overseen by the auditors in terms of expenses, earnings, and taxes will also increase. The ongoing growth of global organizations is also demanding greater auditing expertise concerning international laws and trade in addition to international mergers and acquisitions.
Following Enron and the other financial scandals, Congress passed laws to curtail organizational accounting fraud. This legislation requires public companies to maintain established internal controls to guarantee the accuracy and reliability of financial reporting and analysis. Although not part of this legislation, private companies have to be just as concerned about financial crimes such as embezzlement, theft, and securities fraud. Computer and Internet technology is making such crimes easier to commit, and the number of them are rising.
Over half of the 400 respondents of PricewaterhouseCoopers' second annual "State of the Internal Audit Profession" 2006 survey said Sarbanes-Oxley (SOX) lead to an…… [Read More]
Audit in isk Management
Agelova, B., Koleva, B. (2015). The role of internal audit in risk management system of the companies. Economic Development, 3: 1-10.
This study shows that the purpose of the internal audit is increasingly oriented towards mitigating risk so that the firm in question can reduce uncertainty and exercise adequate, effective and appropriate decision making processes. The focus of the study is, therefore, on the internal audit aspect of a company's risk management. The purpose of the study is situated in evaluation research -- here, that which is evaluated is the "contribution of the internal audit in the management of risks in the Macedonian enterprises" (Angelova, Koleva, 2015, p. 1).
The sample used for this included the managers of 30 Macedonian enterprises along with 48 internal auditors in the epublic of Macedonia. The survey method was used for gathering data and the finding of the study was…… [Read More]
This implies a comparison of the results of the internal and external audits. Additionally, aside results and documents consulted, it is also necessary to assess the various variables used in the evaluations.
It is for instance possible for the company to alter the findings by focusing on more favorable variables. As a specific example, a financial audit could reveal increased organizational abilities to honor company debts, but this conclusion could solely be founded on the assessment of the company's short-term liquidity, in a context in which the assessment of the long-term liquidity would have revealed financial instabilities. In this order of ideas, the risks of altered results would decrease and the relevance of the findings would increase to better allow the auditor to assess the quality of the internal control systems.
At this stage, the auditors would make use of several technological applications through which to increase the efficiency of…… [Read More]
Internal Fraud Detection
Fraud can be detected by deliberate effort through internal control efforts or by coincidence or chance. When companies do not practice strong internal control, it leaves the door open for employees to misappropriate assets without being detected, except by chance. y the time fraud is detected by chance, it could have cost a company millions of dollars in misappropriated assets.
The first coincidence discovered by the magazine company was in the process of a new auditor in an effort to get to know his new company and their accounting codes taking invoices to a vice president responsible for approving payment on them. The very top invoice was a forged signature, and upon evaluation, more invoices were discovered to have contained forged signatures, which is what set up the investigation. According to (Global Economic Crime Survey), 13% of internal fraud is detected by accident, 27% reported fraud in…… [Read More]
32, and Pepsi's ratio is .29. These are close, but suggest that Pepsi is actually able to generate more revenue for every dollar of property and equipment it owns.
This makes sense given the operational differences at these companies; as noted above, Coca Cola does not actually own or operate all of the production elements for its products, thus it makes sense that is has much lower property values than its rival Pepsi, which is more fully integrated (Coca Cola, 2012; Pepsi, 2012). This also suggests, however, that Pepsi's revenue generation and overall value is more tied to its physical properties, plants, and equipment than is Coca Cola, meaning expansion could ne more costly for the company (Palepu, 2007). In this way, productivity might not transfer into long-term efficiency and profitability, which is something both investors and competitors should consider.
If determining human resource and plant/equipment productivity was…… [Read More]
The determination for marketable security with respect to disproportionate distribution is accomplished by reducing the amount of marketable securities that is treated as money using the following steps:
1. The excess of the partner's share of net gain that would be recognized if all securities of the type distributed held by the partnership immediately before the transaction were sold at fair market value over
2. The partner's share of gain that would be taken into account if the securities held by the partnership immediately after the transaction were sold.
While the term "marketable securities" includes interests in actively traded precious metals and other financial instruments that are set forth in the applicable IRC code and regulations, there are some exceptions to this provision, though, and it does not apply in three specific situations as noted below:
1. Contributed by partner. If the security itself was contributed to the partnership…… [Read More]
A major objective of the custodial Financial reporting system is to be continuously and accurately responsive to regular and ad hoc requests for custodial financial reports" (Website of the Internal evenue Service, 2008).
The new information system has not been entirely implemented in the meaning that it still in the stages of control and testing. Once its implementation has been completed, the FMIS is expected to perform the following tasks:
Support the financial audit conducted by the General Accountability Office
Prepare the financial statements of the Internal evenue Service
Prepare reports for trending on operational impact
Feed the BPMS (the Business Performance Management System), the CCW (Compliance Data Warehouse) and the CAP (Custodial Accounting Project)
etrieve the information necessary for the Federal Payment Levy Program (FPLP), and finally
Analyze and report on modules with credit balances belonging to frozen credit processes (Website of the Internal evenue Service, 2008)
The GAO…… [Read More]
The fifth principle of cash disbursement is that of independent internal verification. This occurs at Guard Dog because the reconciliation is conducted by the assistant chief accountant, not the treasury. There are other controls as well that are consistent with the principles of internal control of cash. The invoices are stamped "PAID" when the check has been issued, for example. Also, in each key department there are two individuals, which allows each individual to take vacations. The checks are compared to the invoices before they are issued. By doing all of these things, Guard Dog is following the principles of internal control of cash disbursements well.
4-2A. a) There are several weaknesses in the internal control. The head usher counts the money unsupervised; financial management and audit is conducted by the same group; regular audits are not conducted; only one employee keeps records; the financial secretary conducts reconciliation and audits;…… [Read More]
Presently, the ed Line consists of three segments Downtown LA, Wilshire Center and N. Hollywood and the total coverage is 17.4 miles. Apart from this, the review identified the possible financial and schedule risks. It was inferred that the cost and completion schedules were justified; however funding risks were present for the North Hollywood segment. Apart from that, MTA's overall finances and the operating budget shortfalls might impact the ed Line. Therefore it was recommended that FTA need MTA to keep its finance plan up-to-date and to clearly find out and make priority in its different capital and operating costs revenues by source, and the specific revenues which are to cover specific costs. FTA approved the recommendation. Finally the report concluded that the ecovery Plan's 7-year projections of revenues and costs can be supported and were justified. Nevertheless MTA would be encountering a deficit of $1.1 billion. ("Transportation Investment Projects…… [Read More]
Auditing, Monitoring, Intrusion Prevention, Detection, and Penetration Testing
The network vulnerability is a major security weakness that allows an attacker reducing computer information assurance. Vulnerability intersects three elements: a system flaw, the attacker is having access to the flaw, and ability to exploit the flaw. Thus, a security risk is classified as a vulnerability that is tied to a great significant loss. The vulnerability can erode data confidential, system integrity and availability of data.
The objective of this study is to carry out analysis of two research articles that discusses the network vulnerabilities in the IT environment. (Jackson, et al.2008, Sommer, et al. 2003). Both articles believe that attackers exploit the network vulnerabilities to inflict damages in the information systems. Moreover, the two articles agree that the traditional securities such as network IDS (intrusion detection system) (Sommer, et al. 2003) and DNS pinning (Jackson, et al.2008) are no more effective…… [Read More]
S. through even 2009. The exponential growth of Indian outsourcing companies who have expertise in Business Process Management (BPM) have correspondingly seen an increase in their business, as many smaller American publicly-held companies do not have the people or the expertise to get their processes, systems, it plans and accounting and reporting functions in compliance to the SOX standard in any meaningful period of time (adtke, et.al.) as a result many accounting professionals also must manage outsourcing contracts with companies who specialize in BPM and SOX process-redefinition. Finally there is also more concentration on oversight at the corporate level, with companies including Boeing having a Chief Compliance Officer who reports directly to the CEO to ensure GC Initiatives gain the necessary resources to be effective. Accounting and auditing will continue to be significantly influenced by SOX for the foreseeable future as the need for compliance grows.
The accounting and…… [Read More]
" This project is considered to be the first major update to the Smith Guidance. It was felt that the update was required to shore up some of the deficiencies in the Smith Guidance that have emerged since it was published. There were characteristics of the market that it was felt needed to be addressed, in particular the oligopolistic nature, which exposed the market to considerable uncertainty in the event of a failure of one of the Big Four (FRC, 2008). This report remains a work in progress at this time.
One company that has been impacted by the changes brought about by the Combined Code is oil services firm Lamprell. The company joined the London Stock Exchange in early 2008 and was immediately required to make changes to its governance structure in order to comply with the Combined Code. The company needed to make several changes to…… [Read More]
Legislation and standards affecting IT auditing
The Audit Quality Forum was established with the primary purpose of reinforcing confidence in financial reporting. Statutory auditing promotes confidence because auditors are likely to give external and objective opinions on the presentation and preparation of financial statements. Auditors are required to be independent in opinions expressed, and their work is greatly based on real world. This is challenging in particular national settings. ecently, standard setters, audit practitioners, and regulators embraced significant steps in enhancing confidence within quality of financial statement audits, considering the challenges faced in leading capital markets. IT auditing is critical to any organization. The existence of legislations and standards has ensured that auditors offer independent opinions and that their work is greatly based on real world. This study however shows that this is challenging in some situations as seen in the comparisons provided.
Latest initiatives have focused on an international…… [Read More]
Managing the Effectiveness of the Audit Process
Mission and Objectives of the International Audit Department
The IAD stakeholder power-interest grid
The Audit Process
Objectives, Scope and Approach of the Research
Purpose and Mandate
Sustaining People Excellence
Tools and Technology
Infrastructure and Operations
Japan Tobacco International (JTI) is an international tobacco business that is operated by Japan Tobacco Inc. Japan Tobacco Inc. is the third largest player in the international tobacco industry with a market capitalization of 32 billion USD and a market share of 11%. JTI was established in the year 1999 when Japan Tobacco Inc. purchased the operations of United States multinational R.J. Reynolds, for 8 billion USD.
The Internal Audit Department (IAD) of the organization is accountable to the board of directors. The department is headed by the Global Internal Audit Vice President. He took his position in…… [Read More]
hythm on the Vine is a concert series that is run on a charity basis by the Shriner's Hospitals for Children. hythm is a concert series and the size of the events is growing rapidly, so there is a need for the Shriners to implement proper procedures for financial management and cash handling at these events. Members of the public pay for their tickets with credit cards or online, but there are some ticket purchases at the events, and in some instances there are cash purchases of food and beverages available. There are several different ticketing tiers, with the highest level of sponsorship at $5,000 and lower levels down to $35 tickets at the picnic area. The picnic area generates cash sales of food and beverages in particular, as many picnic guests rely on ad hoc food purchases. In addition to ticket sales, there are silent auctions as well.
There…… [Read More]
A market research plan is the systematic study that deals with the gathering and analysis of the concerned data to assess the role of a certain company in the market and persuade the customers to by their products. Marketing research assist the companies to design better strategies for future with respect to customer behavior (Pickett, 2010).
Marketing audit: It is a systematic and comprehensive evaluation of a company's activities and the results achieved due to its capabilities .In order to carry out marketing research one must understand the role of marketing audit in research.
PUPOSE OF THE AUDIT (Wal-Mart)
Marketing audit is necessary because the Wal-Mart has to compare its performance with the constantly changing market environment. There are certain micro and macro environmental factors that affect the business and marketing operations of the retail business of Wal-Mart largely. A detailed description of them is as under:
Microenvironment:…… [Read More]
Accounting and Audit Enforcement
1. The Sarbanes-Oxley Act applies to publicly-traded companies. Thus, it does not apply to non-profit entities. Nor does it apply to for-profit entities that are not publicly-traded. This is because SOX was passed specifically to address instances of accounting fraud in publicly traded companies that were undermining consumer trust in the capital markets (101.com, 2018). A publicly traded companies has a variety of different obligations under SOX that will help to reduce the opportunities and incentives for accounting fraud. Both opportunity and incentive are components of the fraud triangle – one needs to have a perceived need to commit the fraud and the circumstances with which to do so (ACFE, 2018).
Non-profit organizations have no obligations under SOX. However, there is a school of thought that holds that non-profit entities can benefit from some of the recommendations and mandates that SOX contains. Fritz (2016) writes that…… [Read More]
US General Accounting Office & National State Auditors Association. "Management Planning Guide for Information Systems Security Auditing." Issued 10 December 2011. Retrieved from http://www.gao.gov/special.pubs/managementpln.pdf
his source is a useful reference that can help determine the history and background of I security and federal government regulation. his report is the first of its kind and can help provide deep background information on the topic at hand.
Spremic, M., Ivanov, M., Jackovic, B. (2012). I Governance and information system auditing practice in credit institutions in the Republic of Croatia. International Journal of Applied Mathematics and Informatics, 2(6), 2012: 101,109. Retrieved from http://naun.org/multimedia/UPress/ami/16-201.pdf
his source provides a study to base the effectiveness of I governance. Despite a question of relevance due to the geographical location of the study, the information still holds value because of the questions the article essentially asked. he study focused on financial institutions performance and actions and their reliance…… [Read More]
Network Audit Case Study
This study focuses on a comprehensive list of top ten tips of network and business continuity audit. These tips might lead businesses to survive and thrive in their audits without the need to overhaul their entire infrastructure.
Top ten network and business continuity-auditing tips
Segmentation of tasks distinctively: It depends on the principle of drive and conquers. It involves brainstorming about the organization's security tasks in terms of pieces and separating them into logically and physically segments. For instance, security tasks depend on ensuring people are kept on the outside by using both physical and firewall security (Bergmann & Pamplin, 2013). However, other components are safely kept on the inside using antivirus. Security does not solely imply that people should be kept from the outside. Obviously, companies have lost information from within the business. In this case, each piece must be documented and prioritized.
Documenting all…… [Read More]
Internal evenue Service's Use of Circular 230 to egulate Tax Preparers
An oft repeated maxim in American history states sardonically that "in this world nothing can be said to be certain, except for death and taxes" (Franklin, 1840), and under the modern statutes of federal tax code that observation has never been more prescient. With taxes imposed by local, state and federal governments throughout the entirety of our natural lives, Americans living in 2012 may be facing the most extensive excises ever levied by one nation on its citizenry. Considering the dreaded annual income tax, the sales taxes added to the cost of consumer goods, and property taxes attached to home valuations, the average person is compelled to contribute thousands of dollars annually to support the revenue shortages of a mismanaged federal government. Even the choice to gift a sum of money to your child, spouse or lifelong friend, perhaps…… [Read More]
Audit Planning Control
The American Institute of CPAs (AICPA) has published guidelines for preparing an audit plan. The first step is the preliminary engagement activities, which is focused on establishing an understanding of the terms of engagement for the audit. The steps in the planning process are to identify the scope of the audit; to determine the reporting objectives; to consider the results of the preliminary engagement and to determine the resources that are going to be required to conduct the audit -- and the timing of when those resources will be needed (AICPA, 2015).
To audit Home Depot, it is important first to determine what the scope will be, as this will help to determine the resource requirements. A preliminary meeting with the company will help to determine this -- for example is it necessary to visit stores? Conduct inventory? Talk to Canadian HQ? Or is a visit to…… [Read More]
financial condition of a hypothetical town; Swobodaville. The paper analyzes the town's revenue structure, and expenditure profile among others. In addition, paper outlines how public organizations within this town use data from audits and assessments to increase their effectiveness.
There are several factors that are likely to influence the town's revenue structure. These factors are economic growth, taxations among others. The town has taxation waivers which may have led the increase in revenues from the first to the fifth year. There is a likelihood that the town has been having an increasing revenue base which has led to the increase in revenues. The level of government spending has steadily risen. The increase in government spending on state-provided goods and services including public and merit goods is likely to result in increased revenues for the town's households (Kirchler, 2007). Besides, incorporating revenue neutral individual income tax change that integrates…… [Read More]
Areas of Heightened Audit isk
Audit risk = Inherent risk x Control risk x Detection risk. Audit risk can be referred to as the probability that an audit team will give an outright and absolute judgment when the financial statements of an institution are in actual fact materially misstated. To start with, inherent risk is the possibility that material frauds and errors will get into the accounting system employed to cultivate and improve the financial statements. On the other hand, control risk is the possibility that the internal control system of a client or company is not able to prevent or detect material misstatements (Griffiths, 2005). Lastly, detection risk is the probability that an auditor's audit procedures will not able to detect material misstatements. Taking into consideration the financial statements and the management commentary in the annual report of Havelock Europa there are a number of areas of…… [Read More]
Internal Control Limitation
Limitations in the internal control system consist of lack of training or communication, collusion, lack of management support, human error, staff size, or cost benefit considerations. Lack of training or communications can consist of employees not being trained in internal controls or not understanding correct procedures (McIntosh). Collusion is where employees find ways to work around the internal control system. It can include two or more employees exchanging passwords and entering false transactions. Lack of management support constitutes the tone at the top. Without management support, employees are not properly supervised.
Human error comes from carelessness, distraction, misunderstanding, or mistakes in judgment (Rennels). If a company does not have adequate staff size, segregation of duties are not proper for internal control and staff fatigue or stress can also cause weak internal controls. The benefit of the internal control should be more than the costs. If the benefit…… [Read More]
The proper authorization to complete an inventory also needs to include training on how to manage the exceptions that often occur when physical counting is taking place (Corman, 1988).
The third principle to have adequate documents and records in place that can be quickly be used by the teams completing the audits. This also needs to be preceded with a training session focused on how to also manage exceptions to the paperwork as well, as each company's physical inventory processes are unique to their specific business models (andall, 1984).
The fourth and fifth principles are physical controls and independent checks on performance. These two principles need to anchor all training activity and also be continually audited to ensure performance to standards set over decades are attained. Physical controls and independent checks are also indispensable to the audit and final approval of physical inventory levels, which is the first step in…… [Read More]
On the other hand, Enormo Corp is a big client for CPA, and exposing its case to authorities, would mean losing it.
As an alternative, CPA can refuse to work with Enormo Corp in this case and Enormo would be forced to resort to a different auditing company.
3. ecommended course of action. CPA has the right to handle this situation with the client, while trying to continue to have a professional relationship in the future. So, the suggested course of action would be to address the issue to a higher authority, start documenting it and explain to the client the implication of such documentation. The auditing firm also has the right to protect its integrity, so in this case it is essential to document the findings. However, since there is no rule that forces the auditor to report such discrepancy, the auditor will chose to restrict its actions to…… [Read More]
Auditing Apollo Shoes
Inventory and Warehousing: Test of Controls
Testing the controls that exist in the inventorying and warehousing processes at Apollo Shoes consists of the auditor ensuring that the existing controls actually measure what they set out to measure, and that these measurements reflect that actual movement of goods and materials through the various parts of the business (Arens et al. 2008). Certain processes, such as the means by which inventory is checked in and out of various stations in the business, must also be examined (Arens et al. 2008). Ensuring that these practices are able to influence physical movements of materials and goods is key to the audit process.
Inventory and Warehousing: Test of Transaction
In order to test the transaction that exist in Apollo Shoe's inventory and warehousing processes, the specific physical and record-keeping details of the company must be determined by the auditor. A…… [Read More]
performance indicators and internal budget controls like reviewing staff hours can be used to assess individual and organizational accountability. Strict AICPA standards are required for the peer-review process. In addition, internal budget controls are also effective performance indicators.
The American Institute of Certified Public Accountants (AICPA) has published extensive and strict guidelines regarding the CPA peer review process (AICPA). The standards for membership in the AICPA are strict, "to retain their membership in the American Institute of Certified Public Accountants (AICPA) members of the AICPA who are engaged in the practice of public accounting in the United States or its territories are required to be practicing as partners or employees of firms enrolled in an approved practice-monitoring program..."
In accordance with the AICPA standards, the firm will chose a single, qualified CPA from a list provided by the AICPA to conduct a peer review. This person will review working conditions,…… [Read More]
SAS Number 99 and the Corporate Audit
This report attempts to explain how the new SAS No.99 will change the way accounting firms will be required to conduct corporate audits. News about the collapse of Enron continues to dominate the American media circuits and in the wake of the now infamous Enron accounting scandal, accounting firms will be required to pay more attention then ever. Since the recent American Institute of Certified Public Accounts issue of SAS 99, the approach of auditors in the United States will for ever more be greatly enhanced. ith SAS 99 for example, external auditors will be required to discuss and gather facts with internal auditors. As of SAS 99, corporate America will now be required to monitor and share the findings of internal auditors who may be privy to critical fraud-related data residing with their clients. SAS 99 will therefore provide new opportunities for…… [Read More]
Strategic Audit a Corporation1 I. Current Situation A. Current Performance How corporation perform past year terms return investment, market share profitability? B.
Nestle's performance Audit Report
Performance of Nestle in the year 2011
In the developed world the corporation faced economic frailty and uncertainty more so in the developed world. The economic down turns in the developed world economies had a significant impact on the performance of the product in the market which set in new challenges. Key to remaining afloat with all this challenges at Nestle is to focus on delivery of both short-term performance result and considering investing along the long-term profitability and sustainable lines Nestle The World's Leading Nutrition, Health and Wellness Company 32()
On top of the normal growth Nestle corporation experienced organic growths of up to 7.5%. Real internal growth was recorded at 3.9% while growth in pricing stood at 3.6% Nestle The…… [Read More]
Change Management Audit
While technology and information systems are there in order to make management much more efficient, these systems may also expose an organizations to various risks which might often be serious in nature. These risks increase when changes are brought about in an existing system. In order to minimize such risks it is important that organizations have a change management plan, which is duly audited and tested for compliance before change is implemented.
With the advent and progress in the field of Information Technology, the corporate sector across the globe has increased the incorporation of technology in business practices greatly over the years. Besides assisting in communication and production related tasks, Management Information Systems and knowledge managements are important and integral part of organizational management that play a vital role in ensuring efficiency and quality management. That said, the rapid progressions in technology mean that the preceding technologies…… [Read More]
Although the company relies on information technology it is not at the forefront so can adapt more slowly. There are limited political-legal and societal implications. The most important force -- economic -- does vary but the North American market is by far the most important. Jet fuel prices do not vary significantly from country to country.
Industry competition is driven by overall demand levels, price and service. These forces do not vary globally. There is low threat of new entrants due to high entry costs. Buyers have average buying power due to competition. There is a high threat of substitution from electronic communications and slower shipping services. Rivalry among firms is intense. Unions, governments, interest groups have low relative power.
Customers are the only immediate factor affecting FedEx, as they have curtailed spending on shipping. A major threat is that customers will find ways to reduce shipping permanently. An opportunity…… [Read More]
Strategic Audit Format
Strategic Audit Areas
History, Development, Issues
Milestones (Identify minimum four milestones (events)
Past Issues/problems that the industry faced (Four to five issues)
Current Industry Issues (Minimum three issues)
History, development, problems
Milestones (Minimum four milestones (events)
Current Company Problems (Minimum three internal or external problems)
Present strategic posture
In the following sub-sections (a, b, c, and d), analyze the current vision/mission/goals/objectives/STRATEGIES / structure & culture of the firm
- The vision is to be a leading IT company that grows and meets customer demands on all related IT accessories including desktops, servers, computer peripherals, computer storage and various IT accessories.
The Mission of Dell as it is information technology company is provide the newest technology to create full customer satisfaction with effective cost.
- The focus of Dell INC has always been to be a leader in computer accessories and…… [Read More]
External Corporate Communications Audit
Demonstrate how you would conduct an external corporate communications audit
An external corporate communications audit is a critical undertaking that must be carried out in every organization. Auditing processes are common when it comes to the realization of the basic avenues of growth and development in organizations. In order to realize the best fruits of service from the department of communication, the channels of communication should have to be renewable or accessible for audit. The first section will be used for major auditing activities. The second avenue of the auditing process will involve the personnel that have been put in place as a measure of oversight between the channels of communication, communication processes, and the major pillars of communication within a corporation. Furthermore, it is important to realize the importance of having a sound truth and recognition avenue where the auditing processes are to be executed…… [Read More]
First is that they may be different in the foreign country from the domestic one, which can give rise to implementation complications. The project's timeline and cost could be dramatically altered by differences in environmental factors. Local firms or workers may be involved, creating training costs or potential organizational cultural differences. There could also be cost considerations arising from economic or exchange rate considerations. Environmental factors can be positive, too, as solid understanding of them could allow for advantages that would not be available if the project was domestically-based.
3) it is important to honor the local customs for a few reasons. One is that ultimately your ability to do business in the foreign country is permitted by the government of that country. To offend local custom may jeopardize the entire operation. Also, the project will be implemented more smoothly if you work in line with local customs, rather than…… [Read More]
Describe 2 internal control procedures and explain how the company could use these internal control procedures to protect itself from the risks you have identified in part (a) above.
Demanding that all merchandise be accounted for, even so-called unsellable garments, is essential. If there is a discrepancy between the garments sold to the stores and the inventory sold to Sylvia, she must explain why and produce evidence (in the form of a record of all unsellable merchandise), and the manufacturer should be contacted for verification that a complaint was issued regarding the garments. Secondly, Sylvia must keep receipts for all of her expenses and submit them, but there should also be independent audits -- for example, the company could call up the restaurants and establishments she frequents, to verify that she indeed had reservations and ate there. or, the company could specify what types of transport and what places she…… [Read More]
There are ten Fraud Detection Centers across the United States, and these are meant to detect refund fraud and to identify prevention measures. Each of these offices has a Resident Agent in Charge to direct, monitor, and coordinate operations supporting electronic and paper tax filing, and each Center performs activities that include educating Submission Processing Center and Customer Service Center personnel on fraud awareness and detection.
Criminal investigation in the agency started shortly after the Revenue Act of 1913 was passed, and that act imposed a modest tax of 1% on net incomes of individuals, estates, trusts, and corporations. In addition, another tax, or surtax, graduated from 1 to 6%, was applied to income exceeding $20,000. Over time, many laws have been passed that have changed the rates and other aspects of revenue assessment. Tax evasion was noted as early as 1919, when many serious allegations concerning alleged tax frauds…… [Read More]
Communications Audit eport: A Case Study of Walmart Inc.
A Case Study of Walmart Inc.: Communications Audit eport
Wal-Mart is the world's largest retailer, and the world's largest company by revenues. A communications audit was conducted to determine the effectiveness of the company's communication strategy. This report presents the findings of that audit. It shows the specific media and channel used to communicate with internal and external stakeholders.
Communications Audit eport: A Case Study of Walmart Inc.
Walmart is an American-based multinational corporation headquartered in Bentonville, Arkansas. The company was founded in 1962 with the aim of providing discount goods to customers to enable them live better. It went public in October 1969 to facilitate the achievement of this vision. Today, the company operates over 11,000 stores in 27 countries, dealing in a wide range of merchandise including foodstuffs, groceries, clothing, furniture, apparel, toys, electronics and clothing. It is home…… [Read More]
Apple Inc. Maketing Audit
Apple Inc. is an Ameican multinational company specializing in poducing and maketing of innovative electonic bands that include iPad, iPhone, Apple watch, Mac, and iOS. Globally, Apple is the second lagest IT (infomation technology) company with annual evenue of $227.5 Billion at the end of 2015 fiscal yea. Apat fom its supeio financial assets, the company also enjoys high band loyalties fo all its poducts. Apple also ecods the unpaalleled maket success in iTunes softwae and digital music playes. At pesent, Apple distibutes and maket its poducts though online and etail stoes that assist the company geneating the annual pofits of moe than $53 billion at the end of 2015 fiscal yea. Despite the company financial success, Apple is still facing stiff competitions in the maket envionments since the company opeates in both developed and developing counties. In the United States, and Euopean counties, many electonic…… [Read More]
A healthare organization audit summary
Legay Emanuel Medial Center, at 2801 North Gantenbein Avenue, Portland, Oregon is
is an IRS 501 ( ) 3 not-for-profit, tax-exempt orporation omprised of five full-servie hospitals and a hildren's hospital. The Center's award-winning failities offer an integrated network of health are servies: aute and ritial are, inpatient and outpatient treatment, ommunity health eduation and a variety of speialty servies.
The area's largest loally owned, nonprofit health system, Legay Health's is a lead healthare institution in the region, ommitted to omprehensive servie provision to lients through a network of healthare providers toward a healthier and wellness ommunity. Projeted growth for the institution under the diretion of the Offie of Development advanes the mission and vision of Emanuel Medial Center, dediated to legay of good health for 'Our people, Our patients, Our ommunities, Our world' through development of sustainable programs that generate private support…… [Read More]
Each employee is given the resources needed to achieve their goals.
ithin the unit, performance expectations are identified and measured. Productivity goals are laid out, and evaluated. These results are considered by department managers as a key measure of productivity. ithin the marketing department, for example, sales figures (performance) are the key measure, and are weighed against the time and money spent to acquire them. e found this approach to be typical of each department.
So, in looking at how the company views performance and how it links performance to productivity, is that they do this well at the department level.
InforMed scores moderately well on the use of technology to enhance productivity. The basic requirements are in place, but they are not necessarily used to their best. Each department, as we have found, is responsible for their own budget and that includes the technology budget. At the department…… [Read More]
Climate change is something affecting all countries, with particular relevance to low-lying coastal regions. Island nations in the Indian Ocean, for example, and the dozens of nations in the Caribbean are at risk of inundation not just from the constantly rising sea levels from melting glacial ice in polar regions. Climate change leads to warming ocean waters, which in turn lead to more frequent and more severe storms. In addition to island nations, low-lying coastal regions on mainland continents will also become increasingly vulnerable to the effects of climate change. Climate change does impact other regions of the globe and other countries, as weather patterns impact precipitation levels, which could lead to some regions experiencing more severe drought conditions and others more flooding; some regions might incur greater damage from forest fires too, due to the persistent lack of precipitation. Therefore, the risks of climate change are genuinely…… [Read More]
Organization Tax esearch and Planning
The Internal evenue Service has specific rules with regards to transferring property to stock that are based on the value of the property exchanged and the percentage of all voting stock that the group will receive. First of all, the members that are going to take part in the transaction have to be members of one recognized group. The reason for this is that the rules for exchange apply equally to an individual or group that conducts such a transfer. Another caveat to the rules is that the group must be "in control" of the corporation's stock for it to qualify as nontaxable (NTIS, 2011). This rule has been maintained with the tax code for quite some time (National Tax Services, 2004) and requires that the parties acquire at least 80% of the stock for the transaction to qualify as "in control." The transaction can…… [Read More]
Whole Foods Market
Significant key points
Key financial indicators
Graph of sales growth from year 2002 until 2011.
SWOT and TWOS analysis
TOWS Strategic Alternatives Matrix
Pros and Cons
Evaluation and control
The Whole Foods Market is a progressive and focused corporation with presence in three developed markets including U.S., United Kingdom, and Canada. The company has achieved growth since its inception. The increasing market share of the company has enabled it to expand in international markets. The company envisions becoming global leader in organic and natural foods market. The competitors in the sector are large stores, supermarkets, and retail outlets with increased presence. The product range of these companies includes a number of related products along with the natural and organic foods.
The company requires maintaining its double digit growth strategy and aims to expand in global market. However the cost of natural and…… [Read More]
oles of Directors and Duties of an Audit Committee
The Board of Directors is an organization's or company's governing body that is mandated with the task of ratifying all major decisions. Generally, the Board of Directors handles all issues of major strategic importance to an organization or company. This implies that the Board of Directors needs to be involved, engaged, and supportive in all issues of strategic importance, especially with regards to governance. However, the board comprises of directors who can play a number of several important roles as board members. In contrast, audit committees play a significant role in improving audit quality since these bodies play a crucial role in oversight and monitoring management. This paper examines the important performance-centered roles that directors may play within a board and the significant duties of an audit committee with regards to organizational governance.
Performance-oriented oles that Directors May Play within a…… [Read More]
Employee theft is noted by Mishra and Prassad (2006) to be a major component of private and public retail shrinkage.There is a consensus that theft in the workplace constitutes a serious offense and is a cause of serious problem (Weber, Kurke & Pentico, 2003).Employees have been noted to steal time, money, merchandise as well as other forms of company property like information in exchange for cash and other forms of favors. Wells (2001) noted that opportunity is the main reason for commissioning fraud. According to the U.S. Chamber of Commerce, U.S. employees lose between $20-$40 billion annually through employee theft alone. This theft is noted to be responsible for 30% of all business failure (Condon,2003).Bamfield (2004) further indicated that employee theft is commonplace in the business today.
General prevention strategies against employee theft: A literature review
Vigilance is noted as the key to the prevention of corporate fraud and the…… [Read More]
Another issue is the legal/political power that Southwest has (or does not have, in relation to its rivals). Ultimately, the company has suffered as the result of the right Amendment, and it needs to leverage its current size to fight back against American Airlines over this legislation. Not only should Southwest fight for the amendment to be repealed in its entirety and immediately, but it should fight for punitive action against American Airlines and DF airport. A civil suit against these parties for the financial harm caused to Southwest could prevent them from undertaking such illegal and unethical actions in the future and could help Southwest to put AA out of its misery. Lastly, Southwest has had problems with its maintenance. The company spends a lot less than any of its rivals on maintenance, and while its accident in Chicago was ruled the result of pilot error, concerns over the…… [Read More]
internal auditor, the external auditor and the CFO. The essay also reviews their respective responsibilities, inherent conflicts between them and ethical considerations for each. Finally the essay reviews the treatment of balance sheet items from the perspective of each position.
The internal auditor typically reports to the CFO and is responsible for reviewing work done by fellow employees, checking for errors, oversights and irregularities. The standard method used to conduct an audit involves examining a transaction or process and comparing how it was done with the way it is documented in an operating procedure or accounting convention, then reporting to management on any differences. The internal auditor may use a number of methods or tools to capture information, sometimes even designing or adapting an existing tool to track the information being reviewed (Blackburn, 2011).
Information presented in the internal auditor's report is vital to management's ability to run a successful…… [Read More]
large organizations, the existence and effectiveness of its internal audit function comes into question. Not only the internal audit department should exist but it shall work effectively. An effective internal audit department can serve as the backbone of an organization's success. The International Accounting Standards oard (IAS) keeps on revising its standards to make sure that external and internal auditors of an organization carry out their duties effectively. The board recently revised the Internal auditing standard that serves the purpose of assisting the external auditor's in using the work of the internal auditors. Though external auditors are mainly concerned with auditing company's financial statements but lack of time and in some cases lack of resources raises a question as to their audit quality. In order to ensure that external audit is carried out effectively, the IAAS realized the importance of internal audit and how can the internal audit be an…… [Read More]
This role is in response to clients' demands for a single trustworthy individual or firm to meet all of their financial needs. However, accountants are restricted from providing these services to clients whose financial statements they also prepare." (U.S. Department of Labor, ureau of Labor Statistics, 2009)
1. Public Accounting
The work entitled: "The Reality of the CPA's Role" states that modern CPAs work "behind the scenes as trusted advisors in nearly all significant business decisions. Successful accountants display the ability to think strategically and creatively and to be problem solvers and business advisors." (Douglass, 2006) Douglass states that the views of the CPA are widely varied "...whether from the viewpoint of the investing public or from the perspective of the companies that engage CPAs to audit their financial statements or perform other functions. In fact, many people not involved in the business management or accounting profession may perceive CPAs…… [Read More]
Statistical Process Control
What is the correct relationship of internal audit to senior management?
The correct relationship of internal audit to senior management is a supportive relationship. It is imperative that senior management makes it known, through is ways and actions, that it supports internal audit. One piece of evidence consists of senior management granting internal audit easy access to senior management and the audit committee. The process of senior management providing easy access for internal audit guarantees the correct relationship of internal audit to senior management.
How should conflict be managed? Is conflict inevitable?
Conflict is always inevitable between internal audit and senior management. When internal audit interact with senior management, there is always a potential for conflict. In fact, it is virtually impossible for people with diverse background skills and norms to work together; make decisions, and try to meet project goals and objectives without conflict. Internal audit…… [Read More]
egarding Manpower Planning, ichard had cut staff levels to the point where the departments themselves were being compromised. However, it should be noted that this was being done by ichard due to his own unsavory goals and plans, but at any rate, ichard's actions make an important point. When manpower levels are cut to unsafe levels, for whatever the reason, disaster is likely to follow.
Employee Motivation was crushed by ichard both by his policies and his actions. When he cut staff levels as was mentioned before, those who remained in the staff were displeased at being forced into assuming more work volume, suspicious of ichard's motivations in slashing the staff levels, and left to fear for their own positions. Beyond this, once it was apparent that there were ulterior motives for ichard to be doing what he was doing, the staff members became more and more disillusioned with the…… [Read More]
easyJet Financial eporting
ecent History egarding Corporate Accounting Policy
The recent corporate accounting practices of easyJet Airlines reflects financial accounting policies at the company, which were in disapproval by Sir Stelios Haji-Ioannou, founder -- easyJet (Waller, 2008) . The Board of Directors are responsible for drafting and adopting of company accounting policies. Sir Stelios' rejection of the boards annual accounts is reflective of the agency/principle problem such that the board is now potentially viewing the corporation in a different light than from the founder.
The founder proclaimed the accounting policies adopted by the board of easyJet to be inaccurate and not reflective of the "current commercial realities and the macro-economic climate" says Sir Stelios (Waller, 2008). Stelios recommends changes to the policies in place and suggests appointment of two directors of non-executive capacity to serve on the board to provide financial accounting insight into the policies established and set forth…… [Read More]
Unifying all compliance strategies throughout a business and placing internal auditors in the position of managing variations in processes and reporting results has emerged as a critical success factor for GC strategies (Michelman, Waldrup, 2008). The businesses that are minimizing the disruption of SOX-related it, process and strategy changes have successfully implemented internal auditing oversight programs. This aspect of internal controls is struggling in some businesses as resistance to change and the oversight function is seen as a threat to political power (Michelman, Waldrup, 2008). CEOs and the senior management team of an organization however must be in compliance to Section 302, Corporate esponsibility for Financial eports, which states they have audited and personally verify the accuracy of their financial statements (Bedard, Graham, Hoitash, Hoitash, 2007). Section 404 holds a company officer liable for the accuracy and veracity of the data on financial statement (Hemani, 2005).
SOX initially led…… [Read More]
The statute of limitation for the discovery of fraud is increased to two years from discovery date and five years following the act. Criminal penalties for securities fraud was increased to 25 years, by SOX.
Each public company's CEO and CFO must certify financial statements and reports. Personal loans are banned, to executive officers and company directors, with the enactment of SOX. It is also now required to accelerate reporting of insider trading ("H.. 3763").
In addition, SOX now prohibits insider trading during pension fund blackouts. Compensation and profits for the CEO and CFO must be made public.
Auditor independence is now specifically required. and, American companies must have an internal audit function, that is certified by external auditors. Audit firms are prohibited from providing services, unrelated to their audit work, to clients. One of the most important provisions is an increased accountability, holding CEOs and directors accountable, for crimes…… [Read More]
An analysis of IT policy transformation
The aim of this project is to evaluate the effectiveness of information security policy in the context of an organization, OSI Systems, Inc. With presence in Africa, Australia, Canada, England, Malaysia and the United States, OSI Systems, Inc. is a worldwide company based in California that develops and markets security and inspection systems such as airport security X-ray machines and metal detectors, medical monitoring anesthesia systems, and optoelectronic devices. The company is also represented by three subsidiary divisions in offices and plants dedicated to the brands, apiscan Systems, OSI Optoelectronics and SpaceLabs Healthcare.
In 2010, OSI, Inc. had sales of $595 million with net income of over $25 million. As of June 2010, the company was comprised of 2,460 personnel globally. The parent company provides oversight and fiscal control to the different divisions, and is connected through its virtual network world-wide intranet system;…… [Read More]
ecent Developments in the Barry Minnow Case: Ongoing Implications and Lessons of the ZZZ Best Company
This article outlines three different past cases of significant accounting issues that led to collapses of various levels, from single companies (and some of their investors) to (potentially, at least in part) the entire global economy. The first of these cases is that of Barry Minkow, beginning with his ZZZZ Best carpet cleaning company, which Minkow founded when he was only 16 years old and quickly took public at a valuation of over $200 million. As time wore on, however, it quickly became clear that the business was largely a fraud, an in fact Minkow had been running a Ponzi scheme for quite some time with the business largely a shell (though it did actually make some profit from cleaning carpets, as well).
Eventually arrested and sentenced to twenty-five years in prison…… [Read More]
Total Quality Management (TQM) is the practice of continuously and thoroughly working on improving the proficiency and excellence of the product or service so that it exceeds customer expectations. TQM involves the involvement of anyone associated with the product / service - management, workforce, suppliers, and customers -- in order to ensure its continued excellence.
In its essence, TQM would be defined as a management approach to product excellence in order to achieve customer satisfaction.
Enterprise risk management (EM)
Enterprise risk management is the sector that deals with recognizing possible risks within the operation of the enterprise, assessing possibility and magnitude of these risks, controlling these risks, preventing other risks from occurring, and monitoring occurrence and reiteration of these partial risks.
Quality assurance is the act of analyzing processes and monitoring operations to ensure that high quality standards are being met at all times. In contrast to 'quality…… [Read More]
accounting questions while the rest centers on the characteristics of two certain companies, those being Apple and Philips.
Accounting Questions & Answers
The first accounting question is why revenue recognition is a significant issue. ecognizing when revenue comes in, what specific revenue stems from and the exact amount of all of the above is a very vital part of the accounting process because it has a direct correlation and effect on the profit/loss of a company, the income statement, the cash flow statement and, to a lesser extent, the balance sheet. evenues are used to defray the costs of the goods/services that were disseminated and they need to be properly measured and accounted for, and in the time period to which they apply, so as to ensure that all of the affected and relevant financial statements reflect what is truly going on and when precisely it happens (McQuaig & Bille,…… [Read More]