Auditing and Control Within Organisations

Questions: Assume you are an auditor and are facing the following separate circumstances .All the following items are material .You can assume that management have refused to make any changes necessary to make the financial report true and fair so that the circumstances mentioned still exist. 1. The value of the write off for the Allowance for Doubtful Debts is inadequate .Management are unwilling to adjust it although the amount leads to a material misstatement of Accounts Receivable. The amount of the misstatement is limited to the Receivables and is able to be calculated. 2.A retailer provides a valuation for inventory at sales price less an allowance for sales margin. 3.The Block company has just been advised that its main customer who purchases 45% of its stock has just gone into liquidation.Due to the specific nature of its products Block company is unlikely to find another customer of this size.Block has been starting to have difficulties in making sufficient sales to continue operati ng. 4.The Croucher company has been valuing its buildings using the fair value method .Its buildings are currently shown in the balance sheet at their current market value of 18.5 million. The buildings had originally cost 12 million. 5.The Kaycee company values its inventory at LIFO and is unwilling to change it to FIFO as required by the Australian accounting standards.The amount of the misstatement is known and is limited to its effect on the inventory. Answers: Situation 1 Allowance for doubtful debts is a balance sheet account. It is the reduced from the total receivables of the company. This is regarded as contra assets account. It depicts the best estimate from the management side relating to the unpaid amount. It is the managements estimate that such amount will not be repaid by the customers. It directly affects the working capital of the company if this is understated or overstated. It is the responsibility of the management to record the allowance for doubtful debts properly in the books of account(Auasb.gov.au, 2016). Therefore instead of giving unqualified opinion auditor will give qualified opinion relating to this transaction of the company. A qualified opinion will be given because the amount is restricted to the receivables amount. There is material misstatement in the account which cannot be overlooked(Archive.treasury.gov.au, 2006). Therefore, it is the duty of the management to modify it according to the instructions of the auditor(Auditing and Assurance Standards Board, 2009). If management denies to the changes in the financial statements and auditor has not submitted the report to the board. Then auditor can modify its opinion and state it as adverse opinion. Auditor can take this decision on the basis that management has denied to take the corrective measures according to the relevant standards of the company(AUASB, 2010). Situation 2 Valuation of inventory is done at cost or net realizable value whichever is lower. This treatment is according to the relevant standard. This is the uniform standard on the basis of inventory is to be recorded in the books of accounts. But actually retailer has recorded its inventory at sales price less an allowance for sales margin which is not correct. Inventory is regarded as the largest current asset for any organization. Inventory valuation excludes the cost relating to the selling and administration. It affects the company's current ratio, working capital and current ratio of the company(CPA Australia , 2014). In this case the auditor will issue qualified opinion on the financial statement because inventory is not calculated on the true and fair view. Auditor will give qualified opinion because it is affecting the liquidity position of the company. Thus qualified opinion relating to this transaction is appropriate(CPA Australia, 2014). Situation 3 Third situation is relating to the company in which major customer who purchases the greatest proportion of the company material i.e. 45% of the stock of the company. These major customers went into liquation due to which company has to bear the loss of sales. Moreover right now company is not having any substitute for this customer. Therefore company is having ample of difficulties to continue the sales of the company(CPA Australia, 2016). This condition is hampering the going concern of the entity, which is a big thing for any company. Company has neither the intention nor the necessity to materially curtail its operations in the business. Therefore, auditor should state the mitigating factors due to which effect of the present condition can be minimized(charteredaccountants.com, 2016). When the going concern of the entity is not stable then auditor will give modified opinion. However primary responsibility of the auditor is to state true and fair opinion on the financial statements of the company(charteredaccountants.com, 2016). An auditor while reporting will include an explanatory paragraph also, in which it will describe the event which results into the non stability of the going concern(Standards.org.au, 2016). Moreover, auditor will consider the consideration of the management before stating his opinion over the matter. Thus block company auditor should consider the above stated points while giving his opinion on the financial statements of the company(APESB, 2011). Situation 4 In the given case Croucher company is valuing its building at the fair value method. The building is shown at the current market value in the books of accounts i.e. 18.5 million. However, the original cost of the building was 12 million. According to the standard of fixed assets building is recognized at the original cost. Therefore, it can be said that company has done upward revaluation(Standards.org.au, 2016). This shows that company has not represented its assets on a true and fair basis. In this case auditor will issue qualified opinion(Australian Accounting Standards Board, 2009). Situation 5 The Kaycee Company is measuring its inventory at LIFO basis instead of recognizing them at FIFO basis. According to the Australian accounting standard inventory should be measured at FIFO basis. This states that recognition criteria adopted by the management are not correct. First of all it is the duty of the auditor to inform the management of the company relating to this transaction(Australian Accounting Standards Board, 2009). Auditor will send written representation to the auditor relating to this transaction. Management after considering the written representation of the auditor; modifies the books of accounts accordingly then auditor will give qualified report(Standards Australia Limited , 2015). On the other hand if the management of the company does not consider the auditor's representation then auditor shall give an adverse opinion(Standards Australia Limited , 2015). Overall adequacies of the accounts are hampered if the accounting policy is changed by the management unnecessary(The Institute of Chartered Accountants in Australia, 1998). FIFO method records the inventory in sequence. It is regarded as the most common method and popular method of management accounting. FIFO method is more practical as compared to LIFO. Moreover it is the duty of the company to comply with the accounting standard. Situation 6 The Genome Company while preparing his financial statements does not disclose the related party because of the privacy issues. Related party relationship is regarded as normal feature of business and commerce. It has direct effect on the profit and loss of the company. Financial position of the company can be changed through the related party transactions. Thus it can be said that related party transaction plays a crucial role in determining the business course of action. Related party has an opportunity to enter into the transactions which are not permitted to the unrelated party(Laker, 2016). Thus it makes it materials to disclose the same in the financial statement of the company(Standards.org.au, 2016). Primary responsibility of preparing the accounts as per the relevant standards is the duty of the management. An auditor has secondary responsibility to express an opinion over true and fair view of the financial statements of the company(Australian Accounting Standards Board, 200 9). Audit of financial statements does not relieve management from its primary responsibility i.e. preparation of accounts according to the relevant standards(Archive.treasury.gov.au, 2006). Related party transactions are not independent in nature therefore it increases the responsibility of the auditor. Many transactions relating to the business are within the course of the business but this is not true for every transaction. Related part has the power to operate extensively therefore it is necessary to have true and fair disclosure. Thus auditor should inform management to make the relevant disclosure relating to the transaction. If management agrees and makes amendments according to the auditor then auditor should issue unqualified report(Tomasic, 2016). If manager do not agree with the recommendation and do not make any relevant amendments in the books of accounts; in that situation auditor shall issue qualified report to the Genome Company(Standards Australia Limited , 2015). Through this auditor draws attention of the stakeholders towards the relevant related party transactions of the company. It shows that transactions of the company are affected because of the [presence of the presence of the related party. It is the duty of the auditor to give written representation to the management. If the written representations are considered by the management then auditor can modify its report accordingly. Auditor will identify and assess the various risks relating to the related party transactions(Auditing and Assurance Standards Board, 2016). The auditor will respond towards the assessed risk according to the materiality of the transaction. Thus, it can be said that auditor will present modified opinion in this case(Auditing and Assurance Standards Board, 2016). References APESB, 2011. APES 210 Conformity with Auditing and Assurance Standards. Archive.treasury.gov.au, 2006. Australian Auditor Independence Requirements. Auasb.gov.au, 2016. Australian Auditing Standards. AUASB, 2010. Overview of the revised and redrafted Australian Auditing Standards. AUASB. Auditing and Assurance Standards Board, 2009. Auditing Standard ASA 200 Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Australian Auditing Standards. ASA. Auditing and Assurance Standards Board, 2016. Auditing Standard ASA 720 The Auditor's Responsibilities Relating to. Australian Accounting Standards Board, 2009. Related Party Disclosures. AASB. charteredaccountants.com, 2016. Auditing Standards FAQs. CPA Australia , 2014. A Guide To Understanding Auditing And Assurance. CPA.

Situational Analysis of Starbucks free essay sample

We start off with the organizational analysis’s corporate mission, products and services, leadership Organizational Culture, and Strategy. Next we analyze the firms resources by means of tangible intangible resources, capabilities and core competencies. Then we move into the financials analysis which divides into subcategories such as valuation, growth, profitability, financial strength and management efficiency. The final aspect of the internal analysis is the SWOT analysis which clarifies Starbuck’s Strengths, Weaknesses, Opportunities and Threats. The final closure of the Strategic Analysis is the recommendations for both internal and external analysis along with a conclusion. 2. 0. 0History The history of Starbucks starts in Seattle in 1971. (George, 2010) Three friends; Jerry Baldwin, Zev Sigel, and Gordon Bowker, who all had a passion for fresh coffee, opened a small shop and began selling fresh-roasted, gourmet, coffee beans and brewing and roasting accessories. (George, 2010) The company did well, but things began to change in the 80’s. We will write a custom essay sample on Situational Analysis of Starbucks or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page (George, 2010) McDonald’s has no issue with the generating locations and hitting targeted demographics. Primarily because, McDonald’s is the oldest business in the food service industry. The most common demographic in the American trends are the tweens to teens segment. Here, the up and coming teenagers, or teenagers dive into a new hangout place in order to gain the â€Å"feel† and â€Å"experience† the coffee industry offers. Starbucks offers an influence in the youth of America into employment roles or simply influential leisure hangouts for teenagers. Adam Smith’s â€Å"The Wealth of Nations† best defined competition amongst the market as Lassiez Faire â€Å"A philosophy or practice characterized by a usually deliberate abstention from direction or interference especially with individual freedom of choice and action. † However, no single firm, or group of firms, must ultimately have complete power over any industry because that firm would have the power to regulate prices of that particular commodity. (Dept. of Labor, 2011) This would be known as a monopoly. Should a firm be in recognition of monopolistic power, they would be violating the Sherman Anti-Trust Act in practicing in unfair business practices. (Dept. of Labor, 2011) One example that led to unfair business practices is known as price fixing. (Dept. of Labor, 2011) Price fixing is defined as an agreement between business competitors selling the same product or service regarding its pricing. (Dept. of Labor, 2011) Other pieces of Government regulation is OSHA (Occupational Safety Health Administration). (Dept. f Labor, 2011) Here these laws are backed by the federal governing body of the United States Department of Labor. (Dept. of Labor, 2011) Simple laws here give the employee factions laws to simply abide by in case of any unfair management practices such as quid-pro-quo. All firms must abide by both means of competition and OSHA’s regulator laws. The only real factor in the government/political segment that affects the industry is the EBIT (Earnings Before Interest i n Taxes), because it defines the net worth after gross income a firm can accumulate in the coffee industry.

Using Quizl To Create The Proper Style For An Argumentative Essay

Using Quizl To Create The Proper Style For An Argumentative EssayQuizl is a site that allows a writer to easily create the proper style for an argumentative essay without any complicated navigation or extra typing. It is created so that the person who creates the argumentative essay can simply type in the piece of content and have it automatically created to reflect their own ideas and the opinions of others.Quizl offers various styles, which a writer can choose from according to their individual preferences. Some even offer different color schemes that can be adjusted to fit whatever text theme a writer wishes to use. These are all great ways of using this site to help with the creation of the proper style for an argumentative essay.If a writer decides to use quizl to create the proper style for an argumentative essay, they should use it as their primary resource. This way, they can ensure that they use only the best materials available and all the examples they need. They will also be able to get help whenever necessary when they find themselves on the wrong track. This helps to make sure that they do not waste time or resources with the wrong piece of writing material.Other than that, there are many other ways that quiz can help a writer with the creation of the proper style for an argumentative essay. These include specific quizzes that can be used to test the writer's ability to understand and come up with good examples. These can also be used to determine the level of mastery as a writer has with the various styles and concepts that can be used to help with the creation of the proper style for an argumentative essay.There are also various quizzes that a writer can take that will determine the different types of topics a writer can use for their arguments. Thesecan include material on certain political topics, facts, stories, and even poetry. These can help a writer to be able to become familiar with how they should be presenting information in their argum ents and what tools are available to them.Lastly, the quiz can also be used to help with the selection of other forms of data that may be used in arguments. These can include such things as passages from a book, journal entries, statistics, and many more. These can all be used to make sure that the arguments are complete and a writer can have access to all of the data they need to create their arguments in a timely manner.These are all great ways to use quizl to create the proper style for an argumentative essay. One can easily take advantage of this service by getting a question or two from quizl and then taking a quiz to see how well they know the topic. The quiz can be taken online and then submitted online. This can be done to determine which questions the writer needs to answer first and then work their way through the other areas.Using quizl to create the proper style for an argumentative essay can allow a writer to have a great deal of freedom in creating an argumentative pie ce that is quick and to the point. This can help to make sure that the piece of writing does not drag on as some other pieces of writing may have done. In addition, this will make sure that the piece of writing is not riddled with grammatical errors, so that it remains readable and interesting to the reader.

3 Great Reasons Why You Should Learn How to Read Research Papers

3 Great Reasons Why You Should Learn How to Read Research PapersWhy on earth do you want to know how to read research papers? Most students don't, and it's important that they know what they are doing. If you want to succeed in your studies and have good grades then it's necessary that you learn the skills to read research papers.Why do students want to know how to read research papers? It can be a simple process or it can be complex depending on the subject matter. If you're struggling with something then it's important that you understand what is being said in the paper.Reading research papers will help you when it comes to looking up facts and figures in an essay or report. You need to understand the ideas being presented in the paper. Without this knowledge you won't be able to make sense of the information, and it may not be correct.The first reason that students want to know how to read research papers is that they want to have a chance at good grades. Students want to make sur e that their homework and research are correct, and can get them a good grade. They'll do this by doing their homework by checking facts and figures and understanding the abstract of the paper.If you want to find out how to read research papers then there are a few ways that you can do this. You can simply take a class in which to learn the subject. This can be a difficult thing to do, however, and you may want to do the work on your own instead.That's one of the best ways to learn how to read research papers - to make sure that you know the material. One way to do this is to look for research material that you have to work with, such as books and research papers. These are usually free or very inexpensive, and it can help you do some reading.In addition to research materials, you also need to practice reading. There are many resources available that can help you do this. You can simply read through a book to practice, or you can read the journal articles to make sure that you under stand the material.The last reason that students want to know how to read research papers is that it can help you learn quickly. Some papers are very detailed and need to be read thoroughly. If you read through the whole thing then you can make sure that you understand it, and if you skim through the paper then you can see if you missed anything.

The Advantages of Using a Sample of a College Essay

The Advantages of Using a Sample of a College EssayIf you are writing a college essay on something else, why not create a sample of a college essay on something else? There are many different ways to do this. You could use a sample on your blog or send it to your professor with an assignment for them to use. Whatever your reason, it can help your paper and provide a sample of another area you may want to address in your paper.It's probably better for you to do your own research as to what to write about in your college essay. This will save you some time later when you are writing it, especially if you decide you want to get more specific on a topic.Another advantage is that, when you do your own research, you will also have a better idea of the type of paper you are going to write. For example, if you write a college essay about cancer, chances are you won't be able to cover the same area of the cancer field as a person who is writing a paper on a topic that relates to the person's job.Writing a college essay isn't as easy as writing any other essay. There are a lot of things that need to be considered. A sample of a college essay helps you come up with ideas on the topics that will make you less confused and will give you a good starting point for your writing.There are many good article writers out there that will write for you if you need help or ask them for a sample of a good article they have written. By using one of these writers, you can find a sample of a college essay to use and for free. This will help you get started on your paper and eliminate the guesswork when you're writing your essay.This doesn't mean that if you contact someone in their website that they'll automatically send you a sample of a good article they've written. Often, the article writer wants you to work with them in order to get you started on your paper.One thing to keep in mind is that you should always start with the subject of your essay, not the topic. Your topic is going to be what you write in your paper, but you need to know the basics about the topic. By finding a sample of a college essay, you can get yourself ready and then work on your topic.A sample of a college essay is a great way to start writing. You can use it as a jumping off point for your own topic. Hopefully, once you finish your paper, you'll feel confident and able to tackle anything else you have in mind.

College Expectations Essay - Takes The Sublimely Positive View Into A Touchy Subject

College Expectations Essay - Takes The Sublimely Positive View Into A Touchy SubjectA college expectations essay should be a positive, effective, and concise way to express your personal preferences in life. It is no use having expectations if you do not live up to them. By writing a college expectations essay, you will be giving the college admissions officer a true representation of who you are.By writing a college expectations essay, you will leave a lasting impression on the college admissions officer. This essay will carry great weight and will be highly important when it comes time for college admissions. College admissions officers receive hundreds of these types of essays every year. The college admissions officer will read your college expectations essay and will make a judgment on your personality. This is critical to the college admissions officer because it will reflect your character and your future success.A college admissions officer receives hundreds of college admiss ions essays every year. Although your college admission essay will not have the same effect as an average written essay, it is still important. College admissions officers to judge the applicants based on their experiences, as well as on how they present themselves on their college admissions application.Your college expectations essay should be concise, yet it should leave a lasting impression on the college admissions officer. The college admission officer will read through the essay and will judge you on how well you presented yourself.If you have a special skill or talent, your college expectations essay should also be specifically about that skill or talent. The essay should be self-explanatory and informative. The essay must not be written in the first person and should not rely too heavily on memorization.By keeping your college expectations essay simple, and straight to the point, you will leave a lasting impression. College admissions officers expect more from students who have strong opinions and personal references. Your essay should not be written in the first person, but it should at least be descriptive of the topic.Your college expectations essay should be short, yet it should leave a lasting impression. College admissions officers will evaluate you by how you present yourself. If you go out of your way to focus on the benefits you have gained from your past experiences, your college admission essay will leave a lasting impression.

Charlie and the Chocolate Factory Research Paper Example

Charlie and the Chocolate Factory Paper Dahls Charlie and The Chocolate Factory is an unusual piece of literature; accepted by children and adults alike today as an exciting fantasy world, though originally criticised as racist, politically incorrect and immoral. Todays revision of the novel has therefore been adapted for a racially aware society. Nevertheless, it can still be seen as akin to a communist fantasy world; the Oompa Loompas are all equal and work for the common good, and the children (with the exception of Charlie, the underdog who ultimately benefits from the dictator- like figure Willy Wonka) are symbols of capitalism, such as the gluttonous Augustus Gloop and the spoilt Veruca Salt, who come to their end through sadistic or extreme1 retribution. The novel, therefore, appears to combine in the microcosm of the chocolate factory the religious- based ethics and retributive justice portrayed in Victorian morality plays with a communist style dictatorship reminiscent of Marxs ultimate utopia. The analogy of the factory as a symbol of communism, a criticism directed at Dahls other novels such as James and the Giant Peach,2 is prevalent throughout the book. Charlies father Mr Bucket, for example, is the epitome of the poor worker in a capitalist system; however hard he worked. he] was never able to buy one half of the things that so large a family needed. 3 When the competition is announced, Grandpa George declares that the people who will win the tickets are the ones who can afford to buy bars of chocolate every day;4 in other words, children in stereotypically capitalist families. The criticism of capitalism is reinforced as the children are revealed as representing some of the seven deadly sins; Augustus Gloop is gluttonous, Ver uca Salt is avaricious, Violet Beauregarde is prideful, and Mike Teavee, A boy who does nothing but watch television, is slothful. We will write a custom essay sample on Charlie and the Chocolate Factory specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Charlie and the Chocolate Factory specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Charlie and the Chocolate Factory specifically for you FOR ONLY $16.38 $13.9/page Hire Writer In contrast, as Cassandra Pierce notes, Charlie shows a complete lack of these characteristics;5 poor, hungry, and refusing to eat his grandparents food. When he wins the factory at the end of the novel, it not only represents the triumph of the righteous being over the unholy who have gone to be cleansed, but also symbolises the rise to power of the poor overturning the rich, as Marx predicted. In addition to this, Willy Wonka is represented as a dictator with sinister undertones that many readers fail to realise. As Stalin and Lenin did, for example, he restricts freedom of speech, refusing to listen to complaints or questions. For example when Mike Teavee asks why Wonka makes gum in his factory if he thinks it is so disgusting, Wonka replies I do wish you wouldnt mumble. 6 This is repeated throughout the book with Wonka claiming that he is a little deaf in my left ear7 and telling the children Dont argue. Its such a waste of precious time! 8 Furthermore, the chocolate factory is used as a metaphor for the corrupt communist system whose government holds monopolies over the people. For example, Grandpa Joe describes how the chocolates have become more fantastic and delicious. and nobody] else is able to copy it,9 and later implies that the competition is merely a ploy to earn more money because The whole world will be searching for those Golden Tickets. Hell sell more than ever before! 10 Though this is a criticism of corrupt communist systems, however, in reality it is a feature of capitalist systems with companies such as Microsoft accused of having monopolies over computer systems, and media moguls such a s Rupert Murdoch in effect controlling freedom of speech. Additionally, his treatment of the Oompa- Loompas is questionable. This is particularly true of the original version of Charlie and the Chocolate factory which was criticised by writers such as Eleanor Cameron. Her primary concern was the Oompa- Loompas, who were originally African Pygmies working for a wage of cacao beans, singing songs akin to war chants, and allowing themselves to be experimented on like laboratory animals by Wonka. Though it didnt occur to me that my depiction of the Oompa- Loompas was racist,11 Dahl revised the book in sympathy with the NAACP and other critics to create dwarves with rosy white skin and funny long hair who came from Loompaland. 12 This was further revised in 1971 for the film to green- haired, orange skinned midgets, rendering it as politically- correct as possible and through doing so altering images created without malicious intent. If taken as racist creations, however, Dahls portrayal of Wonka is akin to Hitler, who also experimented on the disabled; rendering the novel surreal,13 disturbing and macabre. 14 The critics of Dahls work, however, often read too much into what really appears to be an exciting, magical fantasy world. For example, Wonka is more of a father than slave- master to the Oompa- Loompas, saving them from thick jungles infested by the most dangerous beasts in the world,15 and finding it very sad16 that one of the volunteers who drank Fizzy Lifting Drinks disappears forever; written perhaps, as Pierce suggests, in response to Lois Kulb Bouchards comment that a Black man floats away to his death stupidly silent, and no one among his family or friends misses him. Though some have tried to read racism into Dahls other works such as the originally black- skinned Fleshlumpeater in The BFG, and sexism in his portrayal of women such as Trunchball in Matilda, his creations are probably nothing more than fantasy figures; white males, such as Matildas father, receive similar treatment. Therefore the treatment of Dahls novel is akin to what Jeremy Clarkson bemoans about todays society- that it is too politically correct; for example calling Siamese twins conjoined twins. It is possible to read Charlie and the Chocolate Factory as a Victorian morality play not only in setting with the great iron gates18 and huge chimneys reminiscent of an English factory during the Industrial Revolution, but also in message with Wonka summing up the moral of the story in the final few pages, telling Charlie that I want a good sensible loving child. 19 It is also possible to see is as an analogy of a corrupt communist dictatorship with the evil dictator gradually disposing of those he dislikes; thereby bringing relevance by comparison with todays international politics. Though it is interesting to read subtleties such as these into the plot, however, it is likely that it is possible to read them into any fictional novel. I would prefer to continue to read it as a magical novel that inspired my imagination from childhood onwards, written with no racist malice or cruel intent.