laser-eye clinics Wayne founded corporation 3rd largest supplier of optical equipment‚ 25% market share‚ 425 employees Users: 30% owned by Wayne and family. 40% of stock owned by employees. Venture Capitalist‚ bankers‚ outside investors Debt Covenant Meet GAAP Only adjust for material amount Internal control problem: 1. lack of trained personnel 2. key controls appear to be functioning but not performed on a timely basis 3. RMM high => rely primarily on substantive Client: 1. audited for 5 years 2.
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Completing the audit‚ Reporting to Management‚ and External Reporting C A S eS INC LU De D IN T h IS Se CTION 12 369 379 385 391 395 12.1 EyeMax Corporation 12.2 Auto Parts‚ Inc. 12.3 K&K‚ Inc. . . . . . . . . . . . . . . . . . . . . . . . Evaluation of Audit Differences . . . . . . . . . . . . . . . . . . . . . . . . . . . . Considering Materiality When Evaluating Accounting Policies and Footnote Disclosures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Leveraging
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EyeMax is a company‚ which is engaged in research and development‚ manufacture and sale of medical devices used by ophthalmologists during eye surgeries. EyeMax started with the advanced laser technology designed for use in optic surgery. The customers of EyeMax are primarily doctors of ophthalmology and laser-eye clinics. Wayne Carruth‚ the founder of EyeMax‚ and his immediate family owned 30% of the stock in EyeMax. The company employees own 40% of the stock. Venture capitalists and a few outside
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Lopez‚ Rodrigo (2013‚ December 19). 3 ways advanced tech is transforming real estate marketing. Retrieved from http://www.boston.com/business/blogs/global-business-hub/2013/12/3_ways_advanced.html Mobile Technology A browser search has become secondary for many brands that no longer does content wait for a customer to come to them‚ they are now able to sense a presence and deploy content‚ targeting potential buyers using Big Data‚ geo-targeting‚ even RFID technology. One of the new features of
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CASE 8-1: NORMAN CORPORATION 1. Answer: The transaction should be recognized based on the following points: i. ii. Conservatism concept stated that expenses should be recognized as soon as they are reasonably possible to occur. According to loss contingency‚ a liability is recognized when information available indicates that it is probable for a liability to occur and when the amount of loss can be reasonably estimated. Therefore‚ Norman should provide a provision for loss and recorded the transaction
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Hoang Thi Thanh Ha - 13200154 Case 12-2 To Recognize or Not to Recognize‚ That Is the Question Shakespeare Inc.‚ a private publishing company issued its F/S on March 20‚ 2012. There were several accruals and events that the management of Shakespeare is considering to determine if they should be recognized or disclosed in Dec 31‚ 2011 F/S. In my opinion‚ the important things to focus on subsequent events are the period they effect and if their influence is material or not‚ so that in conclusion
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CASE 12 HOME DEPOT Analysis What do the financial ratios in case Exhibit 7 tell you about the operating performance of Home Depot? What additional information do the different ratios provide? Complete and compare a similar analysis for Lowe’s. a. Growth ratios are going down‚ loosing sales. Profitability ratios are declining after 1999 so that is not a good sign. Turnover rates seem to stay constant which means that they are selling the products at a constant rate. b. If their
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Spiritual Gifts *** Bible text used: Romans 12:3-8‚ 1 Peter 4:10-11‚ 1 Corinthians 12 14‚ Ephesians 4:7-13*** I. We are all given different spiritual gifts so that we can work together as one group in Christ‚ and thus further His kingdom here on Earth: a. Think about it if we all had the gift of encouragement what would happen? Nothing. We’d all go around encouraging people‚ but there would be no one to evangelize (preach the gospel) to others who are not yet saved. b. And‚ the same
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THE MERIT CORPORATION Family-owned and -operated for three generations‚ the Merit Corporation manufactured and sold children’s furniture. John Kirschner‚ Merit’s CEO and grandson of the company’s founder‚ was actively involved with every aspect of the firm’s operations. Now‚ as he was considering early retirement in the next few years‚ he began to think about his legacy for the future. Merit’s headquarters and the biggest of its three manufacturing plants were located in an industrial park 10 miles
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Case 12.4 1. Mark can ask George for his plans on continuing the company for over a year. The plans must be shared in the form of a financial statement and assuming the plans are adequate‚ Mark can provide feedback through notes on the mitigating factors. If the disclosed information does not meet the criteria Mark was looking for‚ then he should ask George to provide the notes for the shared financial statements which identify the doubts that he has about the growing concern assumption. Assuming
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