Abcd1234

In: Business and Management

Submitted By Sophietran
Words 3606
Pages 15
ACCT 4400
Dr. Robertson
Case Set 2
Spring 2016

Case Set 2 covers issues related to risk assessment, planning, and substantive tests, and consists of the following cases:

Case 2-1: Risk Assessment
Case 2-2: Planning Phase Analytical Procedures
Case 2-3: Substantive Tests and Documentation

Case 2-1: Risk Assessment

Today is April 8, 2016, and your firm is currently in negotiations to renew the contract to audit Smith Corp. for the 2015 fiscal year (Smith uses a 12/31 year-end). Smith manufactures electronic components and sells these products to manufacturers of cell phones, e-readers, and tablets. The Smith family founded the company, which originally manufactured components for radios, in the 1930s. The grandchildren of the founder had no interest in active management of the company, and it went public in the 1990s under different management. Your firm has audited Smith for ten years, and has always issued standard, unqualified opinions for both the financial statements and internal controls during this time.

New federal regulations concerning the disposal of manufacturing byproducts will impact Smith’s manufacturing process this year by limiting Smith’s ability to sell these byproducts to other companies. Furthermore, the company will have to incur costs to implement new methods of waste disposal. In combination, these issues related to the new regulations are material.

To keep up with the rapid advancement of technological developments in its industry, Smith has invested heavily in R&D over the last few years. The R&D has led to several new products that are ready to be included in the manufacturing process this year. The company believes these products will allow it to be competitive for at least three years. To fund its R&D, the company used most of its available credit lines and issued common stock last year. The CFO, Sam Austin, informed you…...

Similar Documents

Unit 1 Graded Assignment 1

...the system to continue booting: init brings the system to the default runlevel — usually multiuser graphical mode. 3. What do the letters of the su command stand for? (Hint: It is not Superuser.) What can you do with su besides give yourself root privileges? How would you log in as Zach if you did not know his password but knew the root password? How would you establish the same environment that Zach has when he first logs in? su command is “substitute user”, by logging in as the administrator you are allowed access to all of Zachs information, files, etc. 7. Develop a strategy for coming up with a password that an intruder would not be likely to guess but that you will be able to remember. Example to follow for future passwords; AbCd1234(^)...

Words: 613 - Pages: 3

Business Law and Practice

...529 530 Business Law and Practice Appendix 1: Company Forms 531 532 Business Law and Practice Appendix 1: Company Forms 533 534 Business Law and Practice Appendix 2: Company Documents 535 Appendix 2 Company Documents (A) Memorandum of association (CA 2006) COMPANY HAVING A SHARE CAPITAL Memorandum of association of ABCD1234 Limited Each subscriber to this memorandum of association wishes to form a company under the Companies Act 2006 and agrees to become a member of the company and to take at least one share. Name of each subscriber Jane Smith Dated: [ ]/[ ]/20[ ] Authentication Authenticated Electronically* * This memorandum is for an electronic registration. If it were a paper registration the document would be identical save that this phrase would be replaced by Jane Smith’s actual signature. 536 Business Law and Practice (B) Certificate of incorporation of a private limited company CERTIFICATE OF INCORPORATION OF A PRIVATE LIMITED COMPANY Company No. 000000001 The Registrar of Companies for England and Wales hereby certifies that ABCD1234 LIMITED is this day incorporated under the Companies Act 2006 as a private company limited by shares. Given at Companies House, Cardiff, the [ Authorised signature For the Registrar of Companies. ] 20[ ]. Appendix 2: Company Documents 537 (C) Memorandum of association (CA 1985) THE COMPANIES ACTS 1985 TO 1989 PRIVATE COMPANY LIMITED BY SHARES......

Words: 274240 - Pages: 1097

Sally's Dilemma

...therefore looking for high caliber sales associates who can support a team effort. We provide a lucrative compensation package including comprehensive healthcare, 401K, advancement opportunities, and a constructive environment contributing to realizing success. Description: High amount of energy and dedication an absolute must, outstanding public relations and organizational skills, a burning desire to succeed, and strong customer focus. No real estate experience required. Requirements: Weekends a must! Education: Previous sales experience preferred. Location: Louisville or Lexington, Kentucky Contact: Recruiting and Training Department To Apply: Email Resume to: Recruiting and Training Dept. LL Please reference Job Code ABCD1234 A Gerald was ecstatic about the prospect of selling homes again, although his previous experience selling condominiums was not necessary (although it would seem to be a plus) in terms of the job requirements. He seemed to have the right background for the job and he had always wanted to work in a job environment where he would feel like an integral member of a team. He perused the firm’s website further and did some research on the firm before he called up Ms. Monahan to set up an interview (see Appendix A, ABC Home Builders LP). Getting the Interview: Persistence and Pain Gerald called Ms. Monahan the next day as he promised and she seemed quite receptive to his call. She asked him to FAX over a resume and that......

Words: 31523 - Pages: 127