Golden Bear Golf‚ Inc. 1)Which “management assertions” were relevant to Paragon’s construction projects? Describe an audit procedure that Arthur Anderson could have employed to corroborate that assertion for each. Professional auditing standards identify 5 “management assertions” that commonly underlie a set of financial statements. These 5 assertions are: occurrence‚ completeness‚ valuation/allocation‚ rights/obligations‚ and presentation/disclosure. With respect to the audit of Paragon’s
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EXISTENCE AND OCCURRENCE were the biggest one‚ presentation/disclosure and completeness 2. Sullivan did a bad job checking and did not apply the proper controls. He identified the project as a high risk engagement‚ but did not do any of the necessary audit procedures to remedy this. Therefore‚ there was an audit failure. Sullivan was not completely at fault as it was fraud so people at Golden Bear were purposefully committing a white collar crime‚ but he should have exposed it by forcing them
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1. Activity Based Costing benefits businesses that are more complex in nature. In this case‚ Greetings. INC has added a new product line‚ Wall Decor‚ which permits them to grow without expanding their physical stores; however‚ they have significantly raised their overhead costs by multiplying their cost drivers. Not to mention the fact that they have incorporated a largely automated system into their product line‚ which we know calls for an ABC system. The main reason to move to ABC though‚ would
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Gold Bear Golf‚ INC. 1. The professional auditing standards have a set of five management assertions. Of the five assertions‚ three are very important in regards to the Paragon audit. The descriptions below‚ audit procedure is explained that would have ensured the audit was completed accurately. a. Occurrence- The management assertion that ensures a particular transaction actually happened. In the case of a construction company such as Paragon‚ this could be verified by going to a job site and
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Case 2. Healthy Foods‚ Inc. Healthy Foods‚ Inc. situation is a tough one. Profits‚ along with morale‚ are down. They have just recently broken off from their parent company and gotten a new president. Some of the policies and business practices they have in place aren’t working for them anymore. Healthy Foods has a line-forcing policy‚ which requires that any store wanting to carry its brand name must be willing to carry most of the 65 items in the Healthy Foods line. This policy‚ along
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Q.No.1: Give Examples of needs‚ wants‚ and demands that build A-Bear customers demonstrate‚ Differentiating each of these three concept. Need:Need is the basic element of every human life. These needs were not created by marketers‚ they have the basic part of the human makeup. Build A Bear customers are children and children have a need of entertainment and enjoyment. Build A. Bear provide these need in the form of toy and other children stuff. Without these kind of activity children have no life
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Chapter 2 Blades‚ Inc. Case Ben Holt‚ chief financial officer (CFO) of Blades‚ Inc.‚ has decided to counteract the decreasing demand for Speedos roller blades by exporting this product to Thailand. Furthermore‚ due to the low cost of rubber and plastic in Southeast Asia‚ Holt has decided to import some of the components needed to manufacture Speedos from Thailand. Holt feels that importing rubber and plastic components from Thailand will provide Blades with a cost advantage ( the components
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Golden Enterprises‚ Inc. (the "Company") is a holding company which owns all of the issued and outstanding capital stock of Golden Flake Snack Foods‚ Inc.‚ a wholly-owned operating subsidiary company ("Golden Flake"). Golden Enterprises is paid a fee by Golden Flake for providing management services for it. The Company was originally organized under the laws of the State of Alabama as Magic City Food Products‚ Inc. on June 11‚ 1946. On March 11‚ 1958‚
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Case 2-1 Absenteeism at ONO Inc. ONO is a large auto-supply company that does a large volume of business with only eleven employees. Absenteeism seems to have increased over the last two years and has had a significant effect on ONO. The information in the text shows that ONO had lost 539 employee labor-hours or 67.375 days to employee absenteeism last year. Because there are only eleven employees‚ this equals out to 6.125 missed days per employee. This is actually less than the United States
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Case 2.5Alumina Jumps on Bad News 1.Alumina reported an 86.3 per cent fall in first half-year profit‚ and suspended its final dividend. Why did its share price rise by 9.79 per cent on the announcement date? Although the situation in Alumina was extraordinarily difficult‚ Alumina firmly believed that the worst reason behind them is the impact of the global crisis‚ and Alumina were quietly confident that market will begin to improve. In between last November and April‚ Aluminium prices had since rebounded
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