there is a high turnover most notably at the higher level position in the internal audit departments. This turnover may be intentional therefore an increase the risk of fraudulent financial reporting is a must. o Situation 7: the vice president of Pinnacle owns a company that was hired to work at the plant doing repairs. This could result in a conflict of interest against the shareholders. o Situation 10: a conflict with the IRS may point towards a problem with management
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Original Work please INTEGRATED CASE APPLICATION –PINNACLE MANUFACTURING: PART II 9-37 (Objectives 9-7‚ 9-8) In Part I of the case‚ you performed preliminary analytical procedures for Pinnacle (pp. 245–247). The purpose of Part II is to identify factors influencing risks and the relationship of risks to audit evidence. During the planning phase of the audit‚ you met with Pinnacle’s management team and performed other planning activities. You encounter the following situations that you believe
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owed to them are coming in more quickly. Lastly‚ in order for a company to succeed they need to have a good turnover rate for the inventory which is just what Pinnacle company has. The inventory turnover ratio is low indicating that it is taking fewer days than before to sell inventory. C and D) are on the Excel Spreadsheet labeled Pinnacle Case Study Common-Size Income Statement
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statements: Pinnacle Manufacturing Company is a privately owned‚ however it relays on loans and has a substantial amount of debt. For that reason‚ the financial statements are extremely useful to investors. Pinnacle management is planning to sell their Machine – Tech division if profits don’t increase in the coming years. If Pinnacle sells‚ the financial statements will be extremely important for buyers. The financial statements will be of great importance to investors‚ in case Pinnacle decides
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about the approach to the problem with supporting references I identify manufacturing costs when buying and making the product in this case study. Then‚ based on the manufacturing costs‚ I calculate the differential cost and the differential profit and decide whether to buy or make the product. The process of each calculation is described in as follows. Firstly‚ in case of buying the product‚ subassembly costs are $128‚000 ($ 16 × 8‚000 Units). Fixed factory overhead applied are $48‚000 ($ 6 × 8‚000
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Pinnacle Financial Partners Inc.‚ was incorporated in February of 2000. Pinnacle Financial Partners is headquartered in Nashville‚ Tennessee. It serves it purpose as a community bank mostly in the urban markets. The Chairman of the Board is Robert A. McCabe and the Chief Executive Officer is M. Terry Turner. Some of the urban markets Pinnacle caters to include these cities: Memphis‚ Knoxville‚ and Chattanooga. Operating through its subsidiary known as Pinnacle Bank‚ it is known for its debit and
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After reviewing the information about the asset‚ debt‚ and equity it does not appear that the company has improved for the given two years. The assets all together are in fact lower than the prior year. The company earned a lesser amount of money in 2004 than in 2003. The majority of the assets seem to be inventory that has not been sold. In my opinion one should truly see more assets from sales instead of it coming from inventory. The long-term debt essentially has risen between the two years‚ which
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390 |4.161 |4.0357 | c). Through comparing the current year’s account balance and ratios with those of the preceding year‚ we summerize Pinnacle business in serveral areas. The gross profit margin which measures the profitability of Pinnacle business indicates that Pinnacle is performing very stable and fairly well. In identifying areas of business risk‚ we focus on accounts receivable turnover‚ inventory turnover‚ and debts to equity. Account receivable
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STATEMENT/RECOGNITION OF DECISION REQUIREMENT/PROBLEM Facts of the Case Pinnacle is a small‚ publicly held Indiana-based machine tool company which is currently losing market shares due to aggressive pricing which have an impact on its profit margin. Don Anglos‚ Pinnacle’s CEO‚ heard a credible rumor that a chief competitor of Pinnacle is planning a hostile takeover of Hoilman‚ Inc. Don Anglos has to decide whether Pinnacle should attempt to acquire Hoilman‚ Inc.‚ a company known for its cutting-edge
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Pinnacle Case Study a. External users’ reliance on financial statements: 1. The company is privately held‚ but there is a large amount of debt‚ so the financial statement -may be used extensively. Also‚ management is considering selling the Machine-Tech division‚ which has the potential to result in extensive use of the statement by buyers. 2. Item 6 in the planning phase indicates plans for additional debt financing. Likelihood of financing difficulties: 1. The solar power engine business
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