What should the controller of Lexsteel do in order to address the potential problems within the corporation? • The controller became aware of the potential problems with the accounts payable system because of the discussion made with the external auditors. • Each branch manager is given the authority to order materials and issue emergency purchase orders directly to the vendors. • Physical counts of raw materials are not performed since there is a cost-effective computerized perpetual inventory
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Case 5 - Exercise 2 Abernethy and Chapman Internal Control Evaluation Client: Prepared by: Date: Exhibit 5-2 is a portion of the audit program that Mitchell designed to test the operating efficiency of controls in the revenue and cash receipts cycle. For each individual test‚ indicate the anticipated results if the control procedure is working properly. Also‚ if the control is not functioning properly‚ list the potential problems that exist. Use the following format for your response: Step
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Chapter 5 Case -- Stem Corporation (A)* On December 31‚ 2006‚ before the yearly financial statements were prepared‚ the controller of the Stem Corporation reviewed certain transactions that affected accounts receivable and the allowance for doubtful accounts. The controller first examined the December 31‚ 2005‚ balance sheet (Exhibit 1). A subsequent review of the year’s transactions applicable to accounts receivable revealed the items listed below: 1. Sales on account during 2006 amounted to $9
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Case 10-5 Danle Corporation In November 2008‚ Danle Corporation，a public company engaging in the design‚ development‚ manufacture‚ and assembly of motors，was sued because of safety issue of parts it manufactured. Danle made no disclosure of the lawsuit in Form 10-K since it determined that the risk of potential loss was remote and no amount of potential damages could be reasonably estimated. In October 2009‚ Danle was served a second complaint for the same reason. Danle’s external counsel believed
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Case 5-1 1. How should AMAX be organized and controlled? * Measuring the management performance to provide proper motivation for managers for measuring profitability. * The quality measurement of manufacturing process such as scheduling product‚ quality control‚ and the decision making. * By focusing on the profit centers that give the information about profitability to upper management. * By focusing on the ending profit or loss that encourage managers to make more profits from
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Case Summary Digital Semiconductor was a business unit of Digital Equipment Corporation. John Gavin‚ the DS group controller‚ wanted the finance department to find ways to add value and better support the division because the DS business strategy had many changes over the past five years and the division was still operating at a loss. History: The semiconductor division which was a part of Digital Equipment Corporation expanded rapidly in the 1970s. Digital was financially very successful in 1988
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#2 Celestial’s virtual teams faced a number of problems that caused a rift between the teams and the team members as well. The first apparent problem was the differences in culture between America and the French based team. The U.S. based members believed that their PFM plan of action worked best because it has proven itself to be a success in the states. The French team was not quick to jump to this idea because they believe that this plan of action would not work. The French developed the
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6Case 5-2: Rondot Automotive Name: Lovee Sachdeva‚ Bin Wen‚ Matthew Miles‚ Ryan Buxbaum ‚Yuguang Wang‚ Shaoying Lu. Group: 3 Date: 2/22/2013 ------------------------------------------------- Situation: * Glenn Northcott is the purchasing planner at Rondot Automobile in Jackson‚ Mississippi. The company is a wholly owned subsidiary of Rondot Worldwide‚ a leading global designer and manufacturer of electrical and electronic components. (Note: You are Glenn)
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credit are closed-end and open-end are . With closed-end borrower pay back a one-time loan in a specific number of payments and period of time. With open-end credit borrower is permitted to take loans on a continuous basis and is billed periodically. 2. Match the following key terms with the appropriate definition. a. closed-end credit b One-time loan paid back in a specified time in payments of equal amounts. b. open-end credit a A line of credit in which loans are made on a continuous basis.
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Case Study: The Corporation 1. In the mid 1800s the corporation emerged as a "legal person" by way of maneuvering in the legal system. For the next 100 years we saw the rise to dominance of the corporation. The corporation created unprecedented wealth but at what cost? The externalities of corporate operations are responsible for countless cases of illness‚ death‚ poverty‚ pollution‚ exploitation and lies. Voice your opinion on this. Who Is Responsible for regulating these Corporations?‚ The Government
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