Diez Pena Ezequiel Small Business Management Professor Gustafson 31 August‚ 2011 Chapter 6 Case Study 1. What theories of trade help to explain Russia’s position as an oil exporter? Which ones do not‚ and why? In our opinion two theories of trade help to explain Russia’s position‚ namely theory of absolute advantage and competitive advantage. “A country has a natural advantage in producing a product or service because of climatic conditions‚ access to certain natural resources‚ or
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on the quality and quantity of audit evidence to be obtained when auditing financial statements and the procedures for obtaining that audit evidence. Audit Evidence (AE) "Audit evidence" means the information obtained by the auditor which includes source documents and accounting records underlying the financial statements and corroborating1 information from other sources. The auditor should obtain sufficient appropriate audit evidence to be able to draw reasonable
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influence (if any) over the audit of Smackey Dog Foods‚ Inc. Smackey Dog Foods‚ Inc. is not a publicly traded company‚ but the SEC has a direct influence on their audit. Keller CPA’s will need to follow the generally accepted auditing standards put forth by the SEC. Keller CPAs need to remain independent of the client and stay free of conflicts of interest when performing their audit responsibilities. Q2. Discuss the essential activities involved in the initial planning of an audit. How do these all specifically
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Independent Auditor ’s Report To the Stockholders Apollo Shoes‚ Inc. 1235 Winner ’s Road Write City‚ IN 12354 LCC has conducted an audit of Apollo Shoes‚ Inc. balance sheets‚ the retained earnings‚ cash flows‚ and other related statements of income for the year ended December 31‚ 2006/2007. Apollo Shoes Inc management is responsible for maintaining the effective internal controls that goes along with the financial statements and how well the accuracy is going to be. LLC has evaluated the
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can be presented: * “Audit evidence is more reliable when it is obtained from independent sources outside the entity.” * “Audit evidence that is generated internally is more reliable when the related controls imposed by the entity are effective.” * “Audit evidence obtained directly by the auditor is more reliable than audit evidence obtained indirectly or by inference.” * “Audit evidence is more reliable when it exists in documentary form.” * “Audit evidence provided by original
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TYPES OF AUDITS Operational PURPOSE: To evaluate whether operating procedures are efficient and effective USERS: Management of the organization NATURE: Highly non-standard; often subjective FREQUENCY: PAs: Frequently AGs: Frequently CRA: Never Internal: Frequently Compliance PURPOSE: To determine whether the client is following specific procedures set by higher authority USERS: Authority setting down procedures‚ internal or external NATURE: Highly non-standard; often subjective FREQUENCY: PAs:
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Diversity in the Workplace Professor Matthew Quinn December 8‚ 2013 Diversity Audit Company to Audit: Johnson And Johnson This diversity audit begins with a background about the company‚ as well as some important information about key Diversity executives. What will be addressed in the audit are what efforts Johnson & Johnson made to foster diversity competence and understand‚ what efforts were made in furthering the knowledge or awareness about diversity‚ what strategies were used to
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national boundaries. 4. Off-Balance-Sheet Items: They often assume significant commitments without any transfer of funds. These items‚ commonly called ‘off-balance-sheet’ items‚ may not involve accounting entries and‚ consequently‚ the failure to record such item may be difficult to detect. 5. Regulations: They are regulated by governmental authorities and the resultant regulatory requirements often influence accounting and auditing practices in the banking sector. Special audit considerations arise
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company avoid lost sales due to “stock-outs” as well as carrying too much inventory on hand (which results in additional storage and handling costs). The purchasing department can make better decisions with the aid of perpetual inventory records. 4. (a) The income measurement process is as follows: SalesRevenue | Less | Cost ofGoodsSold | Equals | GrossProfit | Less | OperatingExpenses | Equals | NetIncome | (b) Income measurement in a merchandising company differs from a service company
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CASE 2 Shih Hong Lin A. What distinguishes management fraud from defalcation? Defalcation is misappropriation of assets such as employee fraud‚ embezzlement and larceny. Management fraud has deliberate intention that uses fraudulent financial statement to covey wrong messages to its investor‚ creditor and the public. The major difference is the intention that distinguishes management fraud from defalcation. In defalcation‚ people who commit such crime is out of greedy. However‚ in management fraud
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