Oceanview ought to maximize its wealth through the decision it will make‚ or reduce its losses. Ocean view prepared a “decision tree” analysis to help them come up with decision problem. Based on the preliminary study‚ the company has four possible outcomes‚ depending on the decisions they will make: - - There is a 20% possibility that it will be the highest bid and acquire the property. In this case‚ Oceanview will wait for 6 months to decide. On the other hand‚ - There is 80% probability
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conducting the audit. This will allow for ease of travel for all auditors involved. This will also lend to the knowledge the firm has of the business and all relevant operations pertaining to Oceanview Marine Company. 2. The financial statements are organized in an easy-to-read fashion. They support that Oceanview is a healthy company and has been for the past three years. The past three years have been audited annually in accordance with their bank and management decisions. Concerns about Acceptance
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by the business by objectively assessing the complicating factors and underlying issues of each decision. In this case study‚ the analysis of the problems faced by Oceanview Development Corporation will start off with a decision tree showing the logical sequence of the decision problem. We will then recommend whether or not Oceanview should conduct market research. Evaluative points of the analysis will be provided‚ discussing inherent weaknesses of the analysis and a novel alternative solution will
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PROPERTY PURCHASE STRATEGY Glenn Foreman‚ president of Oceanview Development Corporation‚ is considering submitting a bid to purchase property that will be sold by sealed bid at a county tax foreclosure. Glenn’s initial judgment is to submit a bid of $5 million. Based on his experience‚ Glenn estimates that a bid of $5 million will have a 0.2 probability of being the highest bid and securing the property for Oceanview. The current date is June 1. Sealed bids for the property must be submitted
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| AB103 Statistical & Quantitative Methods Semester 2 of 2009/2010 Problem Context: This case problem is related to a property purchase strategy. The president of Oceanview is deciding whether to bid for a property to build and sell condominiums. However‚ this depends on whether the state can change the zoning of the property to permit construction of condominiums. Here‚ the decision is whether to bid for the property‚ and chance events are firstly‚ whether the bid can be successful
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Engagement Letter: LILTS BERGER & ASSOCIATES Certified Public Accountants Ocean City‚ Florida 33140 October 30‚ 2015 Mr. Donald Phillips‚ President Oceanview Marine Company 36 Clearwater Lake Road Ocean City‚ Florida 33140 Dear Mr. Phillips: This letter is to confirm our understanding of the terms of our engagement as the auditors of Oceanview Marine Company for the year ended December 31‚ 2014. We will audit the company’s balance sheet for December 31‚ 2014‚ and the related statements of income
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LILTS BERGER & ASSOCIATES Certified Public Accountants Ocean City‚ Florida 33140 Independent Auditor’s Report To the Stockholders Oceanview Marine Company We have audited the accompanying balance sheet of Oceanview Marine Company as of December 31‚ 2007‚ and the related statements of income‚ retained earnings‚ and cash flows for the year then ended. These financial statements are the responsibility of the Company’s management. Our responsibility
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of $5 million. Based on his experience‚ Glenn estimates that a bid of $5 million will have a 0.2 probability of being the highest bid and securing the property for Oceanview. The current date is June 1. Sealed bids for the property must be submitted by August 15. The winning bid will be announced on September 1. . If Oceanview submits the highest bid and obtains the property‚ the firm plans to build and sell a complex of luxury condominiums. However‚a complicatingfactor is that the property
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letter is to confirm our understanding of the terms of our engagement as the auditors of Ocean view Marine Company for the year ended December 31‚ 2015. Services and Related Report As you have requested‚ we will audit the financial statements of Oceanview Marine Company‚ which comprise the balance sheet for December 31‚ 2015‚ and the related statements of income‚ changes in stockholders’ equity‚ and cash flows for the year then ended‚ and the related notes to the financial statements. These reviews
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outcome of the company’s control risk‚ the test of controls and substantive tests of transactions. General procedure: First‚ we assess the level of control in Oceanview Marine Company’s control environment (W/P10-8). We can see through the control environment questionnaire (W/P10-1~W/P10-7) that the general level of control for Oceanview Marine Company is effective. It has nine efficient levels of control and three inefficient ones including internal audit‚ external influences and IT department
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