Audit documentation is the written record of the basis for the auditor's conclusions that provides the support for the auditor's representations. In addition, audit documentation includes records of the planning and performance of the work, the procedures performed, evidence obtained, and conclusions reached by the auditor. Audit documentation also may be referred to as work papers or working papers. In the runners shop case, audit documentation is significant for the audit work performed by Green and Brown, LLP, it has specific purpose to support the audit work. As we know, audit documentation has significant role in auditing because it enables auditors to provide reasonable assurance for clients.…
|1 |What are the respective amounts and percentages of Materials, Labor, Overhead and Other in total COGS for ABC? |…
Founded in 1902, JC Penney is one of America’s leading retailers, operating more than 1,000 department stores throughout the United States and Puerto Rico, as well as offering products online and through catalogs. In January 2012, Johnson was recruited by J.C. Penney investors and left the United States’ second-most-valuable company, Apple, to join the J.C. Penney. He wanted a new challenge. CEO Ron Johnson introduced a plan to rebrand the department store J.C. Penney. The plan was involved and would completely restructure the department store as America knows it. Clear objectives were set. A plan was put into practice that would initiate a three-tiered pricing structure and remove all sales and promotions. A new logo was created. Stores were to be completely redesigned, and turned into 100 mini-stores within each J.C. Penney. Unfortunately, the plan was executed sloppily and J.C. Penney took a 25% loss in just one year. Ron Johnson was fired after only 17 months. J.C. Penney is now searching for a way to survive.…
When making a choice between specialized and broad task assignments, Bagby will be faced with trade-offs. The advantages to Bagby choosing specialized task assignments are exploiting comparative advantage and lower cross-training expenses. Under exploiting comparative advantage “specialized task assignment allows the firm to match people with jobs based on skills and training and correspondingly has employees concentrate on their particular specialties” (Brickley, Smith, & Zimmerman, 2009, p. 395). Being that the employees will be highly specialized it would be expected that these employees would require less supervisor and less training to perform their tasks. Additionally, it is assumed that they would also yield a higher output. The benefits to lower cross-training expenses are realized because the employee does not need to be trained on more than one task. This reduces training expenses and reduces the need for all employees to have the same level of experience, education, or technical expertise. If part of the process requires an education, using specialized task assignments you would not have to have all employees have an education; only the employees working that task would need the education requirement. This would save the company money because they would be able to higher lower level employees to do other tasks. Under broad task assignments, it is more expensive to have all employees trained on every task, but it also allows for flexibility should the need arise to move employees to different task assignments.…
1.a) To value Spyder Active Sports Inc., we decided to use the WACC method since we can easily value its cost of assets with the data immediately available to us in the case. We first unlevered the beta’s of 7 comparable companies and took the average to get a comparable unlevered beta for Spyder (Exhibit 1). Since we are assuming Spyder is entirely equity financed, its unlevered asset beta is equal to the beta of its assets. We now have a rough estimate of Spyder’s asset beta, we can use CAPM to calculate the cost of assets of the firm (Exhibit 2). With an appropriate discount rate, we can use the WACC method to discount the company’s projected cash flows. Again, since the company is entirely comprised of equity, the cost of assets is the cost of the entire firm, so we will use it in place of WACC. Using Spyder’s pro-forma income statement, we then calculate the FCF’s for the next 4 years and discount those using our cost of assets (Exhibit 3).…
Using various techniques with the SPSS program and the university database given, the marketing problem of trying to enhance the Higher Education students of Swinburne University in the Hawthorn campus was analysed.…
According to RightNow’s internal forecast, the revenue growth rate with the new strategy is 67%. In the pro forma balance sheet, I assume that line of credit, long-term debt, and shareholders’ equity stay the same. Other accounts grow at the same speed as revenue grows. From Exhibit 1, RightNow doesn’t need additional fund to support the strategy in 2004; instead, it could repay its debt. As a software company, RightNow has huge amount of deferred revenue, and this liability actually plays an important role as a financing tool. If the growth rate is not as high as expected or gross margin deteriorates, the size of discharged amount in 2004 will shrink.…
Any company’s assets are either financed by its debt or by its equity. The Weighted Average Cost of Capital is the average costs of these sources of financing, each of which is weighted by its respective use in the given situation. By taking the weighted average, we can see how much interest the company has to pay for every dollar it finances. Basically, the WACC is the minimum required return that the company must earn to satisfy its creditors, owners, and other providers of capital, or they will invest in another company that has higher returns. In this case, I will first address the issues with Cohen’s calculation, and then analyze an new WACC to decide whether we should invest in Nike Inc.…
The aim of this experiment is to examine how the concentration of a substrate (hydrogen peroxide) affects the rate of reaction of an enzyme catalyse (found in liver cells)…
The primary stakeholders of Knights Apparel are Knights Apparel, the 120 employees that work in the Alta Garcia factory, various customers, 3…
Baldwin currently has about an 8% ROE, which is well below the industry average of 15%. By accepting the offer and using a 50% tax rate the ROE is estimated to be around 13%, which is significantly better but still below the 15% industry average.…
Lyndon Brooks’ perception of Jane Kravitz’s abilities was initially good. Prior to being assigned to her team, Brooks knew of Jane from other work, and she had made a good first impression. Although somewhat dismayed by what seemed to be a demotion to Brooks, he was excited for the opportunity to begin anew and prove himself, and working for Kravitz was fine with him. However, beginning in Kravitz’s first staff meeting, Brooks felt as though he had been stereotyped as a minority. Seeing that his first assignment at Jensen Shoes was working on the African American and Latino lines, even though he had no professional experience marketing to these segments, and now being assigned these lines again, Brooks’ perception of Kravitz is that she may be coloring him as a minority that can only market to other minorities. When Brooks finally got to sit down with Jane, the discussion was a good one. Brooks had a lot of concerns that he wanted to share with her, and he was able to do that; however, he did not feel that she took his concerns too seriously: she put off talking about the strategic objectives and the timeline for completion while considering the special project. This tells me that Brooks’ initial perception of Kravitz’s attitude may not be great. But, Brooks wanted Kravitz to be his “ally,” so he also perceived that Kravitz was a team player who would help him out. Once Brooks was successful with the special project for the Executive VP, Kravitz went overboard with praise and then hit him hard for work on his strategic objectives, for which he was now two months behind the other group. As “perception is reality,” this turn of events took Brooks’ by surprise and he no longer knew how to perceive Kravitz: They had the initial discussion which was good; he shared his grievances that he didn’t think both strategic objectives were realistic (but…
2.) Psychological pricing and reference pricing both apply well to the strategy that payless employs. Before purchasing, consumers think about which prices are suitable for specific products that are available. When consumers see a high priced product, they would expect to see the product to have certain characteristics that stand out from items that are available at a lower price. Payless catches the buyer’s attention by displaying products as a very high quality product, so the consumer assumes a certain price to themselves. After the consumer assumes a certain price, payless will sell this product for much cheaper than the consumer would expect prompting the buyer to believe it’s being sold for much cheaper.…
Sport Obermeyer is a Skiwear Company, established in 1947 by Klaus Obermeyer in Aspen, Colorado. The management: His management approaches: took more intuitive style & was informed by his extensive industry experience. Klaus son Wally, MBA, is the company’s vice president. His management approaches: relied on formal data gathering and analytical techniques. Suppliers: Obersport plays a huge role in the production, it gathers and sources the supplies, fabrics and components for Sport Obermeyer production. Sport Obermeyer's orders represented about 80% of Alpine's annual production volume. Target customers: The company is targeting middle-class / high-class consumer segments. Sport Obermeyer developed by time to be a strong competitor in the U.S. skiwear market. The company holds a 45% share of the children's skiwear market &11% share of the adult skiwear market. *Comp*etitors: Columbia Sportswear is a huge competitor for Obermeyer. *The problems*: It is facing a problem in distributing the demand on its main suppliers in the Far East; either plants in China or Hong Kong. Forecasting next season’s demand: Demand for each product cannot be determined by managers (each one of them gave a different forecast result). Even the production for each style takes more than two years, so the production cycle has a very long lead time which makes it hard for them to adapt with the market designs and changes since they can’t predict what product will be the best seller in two years and how much quantity they should produce. Suggested solutions: Because Wally found that the standard deviation of demand was approximately twice the standard deviation of the committee’s forecast of that style, we suggest adding the highest and lowest range to that table (by adding 2* standard deviation to the mean) and…
However, at workstation no 4 and 8 the total production capacity is limited to 360 and is thus bottleneck for the desired total production of 420 units per day.…