ACC 491 Syllabus

| |Write a 700- to 1,050-word paper analyzing the disclosures contained within the notes to the | | |

|Nongraded Activities and|Watch the Financial Reporting for Business: Introduction to Accounting Reports and |Day 6 | |

This course focuses on services management in general and service operations in particular. It explores the elements that unite services, that differentiate service processes from non-service processes and that differentiate various types of services from each other. Customers generally participate in the service process, often with direct and uncensored interactions with employees and facilities. The resulting

Is this going to be hard? Yes. Are you going to get a significant return on your investment? We think so. As your instructors, we will create an environment that maximizes your potential to thrive in this course. As such, you should plan to spend a significant amount of time on this course and make sure that you are in a position to succeed - i.e., not trying to overload credits, not working 60 hours a week and trying to go to school full time. In other words, we expect that school is your first priority. If you have any questions about whether or not this is a reasonable time to take this course, given your competing non-school responsibilities, your instructor will be happy to sit down with you before the drop/add date to determine if you are in a reasonable position to succeed. Put simply, you are responsible for providing yourself enough time and energy to succeed in this course.

An important decision for any shareholder is deciding whether or not to do business with that company. When a business is audited, the operations are reviewed to make sure that nothing is being hidden. An auditor will review the company’s financial statement and practices to confirm that each are direct and correct. The financial statements are the business’s way of representing them and showing that they are following the Generally Accepted Accounting Principles. The audit process is an important one because it provides a platform for the auditor’s opinion concerning the financial statements of the company. As part of the audit process the auditor will conduct an audit plan that outlines a number of actions that he or she will be perform while also detailing the reason for those actions. With every audit, the business’s management is in charge of handing over the financial statements that the auditor will review; while the auditor will review the statements for any material or immaterial misstatements.

This course provides a framework for financial accounting concepts and practices used by internal and external users in businesses. Topics presented include the accounting cycle, financial reporting, financial statements analysis, ratio calculation and interpretation, and management decision making based on financial results.

The purpose of this memo is to address the topics of inherent risk, control risk, and detection risk. We will do this by addressing an accounting policy stated in the company’s 10-K report. We will discuss risks associated with the accounting policy, recognize company controls, and test those controls. Substantive analytics and tests of details will follow. Lastly, we will discuss fraud and extended procedures to detect fraud. To end, we will conclude by outlining the main points and emphasizing our audit plan.

Due to increasing economic and financial growth, many types of audit have been incorporated throughout the development process of internal activities. Audits can be performed manually or they can incorporate technology. According to Hunton and

Over the past decade the world has been taken by surprise by the numerous accounting scandals that have occurred, for example, Enron, WorldCom, Tyco, Xerox, and Global Crossing (Suyanto, 2009, p. 118). Since those accounting scandals occurred the United States Congress passed the Sarbanes-Oxley Act of 2002 (SOX) to help improve a company’s corporate governance and help deter fraud (Chinniah, 2015, p.2). In addition to SOX, the Accounting Institute of Certified Public Accountants (AICPA) passed the Statement on Auditing Standards (SAS) No. 99 (p. 118). Both of these new accounting laws help to deter financial statement fraud from occurring.

A company’s management clearly acknowledges their liability for capable of accurate, reliable, and timely financial reports. This accountability is addressed through the firm making use of a well thought-out “internal control framework the Internal Control – Integrated Framework that has been delivered by the Committee of Sponsoring Organizations of the Tread-way Commission”

Arens, A. A., Elder, R. J., & Beasley, M. S. (2006). Auditing and Assurance Services (11th Ed.). Prentice Hall, Upper Saddle River, NJ: Pearson Prestice

This document provides a consolidated set of audit checklists typical of those used by internal and external auditors to evaluate the financial close process and test compliance with SarbanesOxley (SOX). These checklists identify all of the typical controls that comprise a typical audit and highlight ways that you can automate many of the tasks by using an independent controls monitoring and audit (CMA) solution.

We will conduct our audits in accordance with auditing standards generally accepted in the United States of America (“GAAS”). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free from material misstatement, whether caused by error or fraud. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. The procedures selected depend on our judgment, including the assessment of the risks of material

The second concept that I enjoyed as part of this coursework was in Chapter 15 on managing business finances. As Head of Global Procurement I am responsible for reviewing accounting statements, like our balance sheet, income statement, and cash flows on a monthly basis. I also have budgetary responsibility for my department, Ebert, R. J., & Griffin, R. W. (2015)

• The corporate controller’s former affiliation with the accounting firm enables him to better assist the audit team in completing various tasks (but see weaknesses below). WEAKNESSES: • Although competent, the internal audit staff reports to the corporate controller. This impairs audit independence within the organization and places too much emphasis on financial auditing relative to operational auditing. • Having once been employed by the auditing firm, the corporate controller is familiar with the firm’s auditing strategies and procedures. This knowledge could assist in concealing fraud from the audit team. • Given a manufacturing facility of this magnitude, a separate “plant assets” section within the accounting function appears to be warranted. • No mention is made of a tax person or a tax department within the company. • Given the changes in the company, there should be some periodic review of the organizational chart to assess whether changes are needed (having the same organizational structure for over 30 years may not be the most effective or efficient) • There is a focus on centralized decision making with the CEO, Trevor Lawton, having a dominant role on decision making issues.