4.1 Enron Corporation and Anderson‚ LLP ----Analyzing the fall of two Giants This case results in the publishing of Sarbanes-Oxley Act of 2002 and relevant to the Securities and Exchange Commission. Also‚ it is related to SAS 103: Auditing‚ Quality Control‚ and Independence Standards and Rules. [1] What were the business risk Enron faced‚ and how did those risks increase the likelihood if material misstatements in Enron’s financial statements? The business risks Enron faced are as following:
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JOLLIBEE FOODS CORPORATION (JFC) A Written Analysis of a Case by Lloyd Ty Brief Synopsis of Data In 1995‚ AB Capital and Investment Corporation was tapped by the UP Foundation‚ Inc. (UPFI) to manage an equity fund of 2.5 million pesos‚ which is a small portion of their 260 million peso endowment fund. The interests earned from the fund‚ which is used to support the professorial chair requirements of the University‚ has dropped due to a decline in the returns of treasury bills - that being the
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Interwest Healthcare Corporation Case Study Saint Leo University Summary Interwest Healthcare is a nonprofit organization that uses a management information system to house their patient’s intake‚ treatment‚ and release information at the 10 hospital’s owned by the company. Their chief financial officer (CFO)‚ Vijay Singh‚ worries that the company will possibly face management planning issues as well as the possibility of losing their federal funding due to hospital staff members entering information
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1. Read the footnotes carefully. Identify four accounting policy changes and accounting estimates that Harnischfeger made during 1984 and estimate as accurately as possible the effect of these changes on the company’s 1984 reported profits? One accounting change that Harnischfeger made was that they were going to include products purchased from Kobe Steel in their net sales. Before November 1‚ 1983 only the gross margin on Kobe products was included in their net sales. Harnischfeger was also
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CASE STUDY: PolyMedica Corporation (A) Northwood University DeVos Graduate School of Management September 17‚ 2012 PROBLEM STATEMENT PolyMedica’s method of capitalizing direct-response advertising expenditures rather than expensing the cost is under investigation by the U.S. Securities and Exchange Commission (SEC) and has caused concern for investors who are questioning the legitimacy of this practice. ANALYSIS
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consulting‚ Inc. has concluded that standard costing is the best costing system for your company when used correctly. We have identified a few problems with your standard costing system that we would like to address. The first problem with ChillOut Corporation is the overall focus of the organization is too centralized around favorable variances. Managers are awarded bonuses for favorable variances and the computer software only notifies departments when there is an unfavorable variance. The department
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ACTG 350: CASE 1 Buck’s Dilemma Overview As Buck’s Hunting Equipment‚ Inc. (Buck) has came to an exciting phase of growth and development‚ a new complexity involving the assignment and presentation of its borrowing and payment activity as it relates to the revolving line of credit extended has emerged. The report has been broken down into the following sections: 1. Assignment of Borrowing and Lending Activity: Presentation of
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had a single client with a large share of the business. The previous accounting system focused on two variables: direct labor and burden. For the latter‚ costs were grouped into a single cost pool that included burden costs associated with of the testing rooms i.e. mechanical and electrical; as well as engineering burden costs related to software and tooling development alongside administrative costs of the division. As the case mentions‚ total burden costs are then divided by the sum of testing and
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Electric utility bills. When an electric utility customer uses electricity‚ the electric company has earned revenues. It is obviously impossible‚ however‚ for the company to read all of its customers’ meters on the evening of December 31. How does the electric company know its revenue for a given year? Explain. According to historical data‚ the electricity usage usually tended to be fairly constant from month to month. The company can estimate the revenues for each month‚ by using historical data
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Introduction The Teletech Corporation is a “provider of integrated information movement and management”‚ as it defined itself. It had two main business segments: the first one was Telecommunications Services‚ which provided long-distance‚ local‚ and cellular telephone service‚ accounted for 75% of the market value of the firm; the second one was the Products and Systems segment‚ which produced computing and telecommunications equipment‚ accounted for other 25% of the market value of the firm. The
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