Case 3.1 Enron: Understanding the Client’s Business and Industry Price‚ Ria; Walters‚ Jessica 1. Inherent risk‚ a component of the audit risk model‚ refers to the susceptibility of the accounts to material misstatement‚ without regard to the systems internal controls. Inherent risk is a function of the nature of the client’s business‚ the major types of transactions‚ and the effectiveness and integrity of its managers and accountants. A clear understanding of the audit client’s business model is essential in assessing
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Case 3-51 Pages 115 -117 1. Why might Koss management have placed so much trust in Sachdeva‚ along with minimal supervision and monitoring? Koss management might have placed so much trust in Sachdeva because she was is such a high position. She worked in the company as Vice President‚ when you are that high on the totem pole‚ you are given trust that you know what you are doing and that you want what is best for the company. Companies don’t hand out positions to people that
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Giving a Speech I knew this day would come sooner or later. A month ago I saw the nicely printed black letters that spelled “Speech” on my class schedule and a feeling of anxiety overcame me. My stomach felt as if I ate some bad leftovers and my heart was ready to come out of my chest or mouth whichever came first. I certainly thought I had enough time to mentally prepare; but here I ‘am wishing I were the invisible woman. I stood on line behind two other students
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Case 3 LEADERSHIP STYLES AND MOTIVATION TO WORK Brako is a small manufacturing company that produces parts for the automobile industry. The company has several patents on parts that fit in the brake assembly of nearly all domestic and foreign cars. Each year‚ the company produces 3 million parts that it ships to assembly plants throughout the world. To produce the parts‚ Brako runs three shifts with about 40 workers on each shift. The supervisors for the three shifts (Art‚ Bob‚ and Carol) are experienced
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Biovail Corporation. David Maris‚ an analyst at Banc of America Securities (BAS) has investigate that Biovail might have significantly overestimated the amount of Wellbutrin XL on the truck. 1.2 PROBLEM / ISSUES OF THE COMPANY From this case we are defined some issue. First Biovail Corporation have their problem in using the contract of shipping the product. That is two contracts that can be use FOB shipping point and FOB destination. That has a different in revenue recognize for FOB contract
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Case Problem Set 3: Problem 1: Young Professional magazine was developed for a target audience of recent college graduates who are in their first 10 years in a business/professional career. In its two years of publication the magazine has been fairly successful. Now the publisher is interested in expanding the magazine’s advertising base. Potential advertisers continually ask about the demographics and interests of subscribers to Young Professional. To collect this information the magazine has
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Evaluate the various methods of recruiting in terms of whether they seem more like “open” or “targeted” recruiting‚ using the information in the book to help you make this decision. If some methods seem more “targeted‚” whom do you think they target? 3. For each division use the data tables provided in Appendix B to estimate how each method fares in terms of yields and costs. Provide a one-page summary of the essential results of the various data tables you have been provided. 4. Northern Oregon
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1.) (Values in millions) Liquidity Current Ratio 2004 2003 2002 2001 DCM 1.6318 1.5176 1.8258 2.0946 Plastichem 1.3011 1.5230 1.4623 1.3094 Quick Ratio DCM 0.9900 0.9296 1.1136 1.5676 Plastichem 0.8599 1.1410 1.0385 0.8264 Cash Ratio DCM 0.0149 0.0553 0.0227 0.3919 Plastichem 0.0515 0.0761 0.0838 0.0226 Leverage Debt Ratio DCM 36.07% 38.54% 33.44% 22.50% Plastichem 83.45% 66.07% 66
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information about a company’s liquidity and financial strength. To answer the question Jay is right to prepare a analysis on the two companies. The income statement shows that the DCM Company was popular in growth and profitability over Platichem. 3. DuPont analysis tells us that ROE is affected by three things: Operating efficiency‚ asset use efficiency‚ and financial leverage. The DuPont analysis is believed to measure assets at gross
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“Qwikster” that Netflix gives to original online based DVD rental business (Wesley 6). Analysis Video on demand is new video streaming technology applying which depend on internet download and must be paid advance‚ subscription (Wesley 3). Netflix is the first company offering online subscription based DVD rental service and has been retained many loyal customers. Thus Netflix has technology advantage to run video on demand business. Blockbuster is a direct competitor to Netflix depending
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