Chapter 7: Case 7-25 – New Client Acceptance, Comprehensive Case: Mt. Hood Furniture, Inc. Company Background Information: Your employer, Reddy & Abel, LLP, Certified Public Accountants (who is registered with the PCAOB and audits public companies), has been approached by a prospective client, Mt. Hood Furniture, Inc., about your firm taking on their account. The firm has adopted procedures for the acceptance and retention of clients following the AICPA guidelines for quality control in an accounting practice. The firm requires that a partner interview all prospective clients to determine what services the client needs and the ability of the firm to provide those services. As the prospective senior on the engagement, you accompanied the …show more content…
Hood offers both pension and profit-sharing plans; the plans have been in place for over 25 years. The company distributes its products through a small network of approximately 150 office furniture dealers in major U.S. cities. Recently, the company placed its product with several national chains and warehouse-club chains. Most of the sales growth over the last two years is attributed to this new distribution channel; it represented 35 percent of year- 20X3 sales. Their largest single customer accounts for 8 percent of sales. The company also produces a catalogue and has an information web site with an order link. The office cabinetry line offers custom orders for on-site installation. Customers include major hotels and professional and corporate offices. Today 20 percent of sales come from this line, and the chief operating officer would like to see this line grow to a total of $25 million in sales in the next three to five years. Individuals, which comprise about 5 percent of total sales, can order directly from Mt. Hood Furniture using the company’s web site. A large showroom is maintained at the corporate offices; customers may also place orders at the showroom. Mt. Hood Furniture is subject to a variety of federal, state, and local laws and regulations relating to the use, storage, handling, generation, transportation, treatment, emission, discharge, disposal and remediation of, and exposure to, hazardous and nonhazardous substances, materials, and wastes. In
Needspace entered a operating lease with WeHaveIt for 10-Year Lease term.Lease agreements have certain provisions depending on how the contract is written by the lessor to the lessee and what type of lease agreement. In this lease agreement we are focusing operating lease with provisions of NeedSpace and WeHaveIt, which has a 10 year lease term, no options to renew or negotiate renewal offered in the contract and the lessee incurs certain cost, repairs and maintenance. In regards to ASC 840 leases, according to 840-10-20 and 840-10-05-9A, 840-10-05-9B an operating lease is when the lessor the owner of the property gives the lessee the right to use property, plant or equipment for a limited amount of time. Meaning the lessee
ASC 320-10-35-33F: “Changes in the quality of the credit enhancement should be considered when estimating whether a credit loss exists and the period over which the debt security is expected to recover.”
Sparkle Company is a Nigerian diamond mining company. Sparkle is a joint venture, 50 percent owned by Shine and 50 percent owned by Brighten. Both Shine and Brighten are U.S.-based companies with their functional currency being the American dollar. Sparkle Companies functional currency is that of Nigeria, being the Naira. During 2009, Sparkle had several transactions with its joint venture owners and outside parties. The details of Sparkle’s transactions are three loans, three expenditures, and one revenue stream. The loans the company took out were $1 million from Brighten, $1 million from Shine, and 300 million Naira from a local Nigerian bank. The expenditures
This case is talking about an executive retreat. It was introduced by John Matthews who was a executive had been selected to attend the two-and-a-half-week retreat. The retreat was more like a competition about academic and athletic. The team members should not only get know each other and cooperate with teammates but also need to compete with others. The whole participants were broken into five groups and their aim was to win the competition. There are several sessions about academic and athletic that the participants should complete. After the introduction part the case showed the experience of John. Before the group meeting John was wondering and worried about this retreat. When he was taking the first group meeting, he tried to learn
Shakespeare Inc., a private publishing company issued its F/S on March 20, 2012. There were several accruals and events that the management of Shakespeare is considering to determine if they should be recognized or disclosed in Dec 31, 2011 F/S. In my opinion, the important things to focus on subsequent events are the period they effect and if their influence is material or not, so that in conclusion, the F/S are fairly presented.
On a snowy January evening, the Midwestern Medical Group (MMG) management team held a retirement party for Judith Olsen, MMG president. During the evening, Olsen reflected back on the years she had worked for MMG with mixed feelings about her experience. Over the course of their eight-year integration
The following information is provided for adjustments prior to closing the books. Lopez and Knepp ask you to enter the adjustments into the spreadsheet, in the two columns to the right of the unadjusted trial balance. (CM2 uses a perpetual inventory system.)
Jacquelyn Young hired the law firm of Becker & Poliakoff to represent her in her federal employment discrimination lawsuit against her employer. The firm associate that filed the action made a mistake by attaching the wrong U.S. Equal Employment Opportunity Commission (EEOC) right-to-sue letter. The court dismissed the claims. The law firm did not try to re-file using the correct attachment, or try to dismiss the motion. Thirteen months later, the law firm informed Young that the claims had been dismissed, and that the firm was withdrawing from representing her further with the case.
Partners Healthcare had established several financial resources pools, such as the short-term pool (STP) and the LTP, so that they can satisfy different needs of the several hospitals in the network. In more detail, the STP was invested with very high-quality, short-term fixed-income financial instruments. The average maturity of these instruments is about one to two years. STP is always treated as the risk-free part of the hospitals’ holdings. On the other hand, the LTP is thought as the risky part of holdings. It consists of different forms of equity and a smaller fixed-income part.
Build the management-research question hierarchy, through the investigative questions stage. Then compare your list with the measurement questions asked.
Given our analysis of the motion picture industry, we recommend that Arundel carefully select the major film studios from which they intend to purchase sequel rights. The net present value of hypothetical sequels taken from the available previous years shows not only that the industry is highly volatile, but also that certain production studios are more volatile than others in terms of their recent performance. In addition, some studios are consistently less profitable than others. (See "NPV for Each Production Company" chart in appendix) Since the success of film studios are relatively stable in the short term (see "Rental Shares of Major Film Distributors" table and graph) Because of this stability, it is possible for Arundel to approach more profitable studios with their offer to purchase sequel rights. Out of all the major film studios, only MCA-Universal, Warner Bros., and The Walt Disney Company generate a positive net present value on a per-film basis. However, according to casual inquiries, it is unlikely that any movie studio would enter negotiations with Arundel on a per film price that is less than 1 million. Instead, the film studios seem to
For this client system assessment, I have chosen a client I engaged with while at work, my client’s name is Keith. Keith is 34 years old and has had many unfortunate circumstances surrounding his life, beginning with his birth. Keith’s family system consists of himself, his mother and two step siblings. Keith was unfortunately the product of a rape, witnessed repeated domestic abuse situations with his mother’s boyfriends and husbands, was abused himself and to this day, Keith continues to suffer in all domains: emotionally, mentally and physically. I will assess Keith’s family system as well as Keith as an individual utilizing Erikson’s Psychological Stages of Development, Bowman’s Family System Theory and Marcia’s Identity Status Model.
Nurse’s care for several patients in a day and it is important to understand the patient as a whole person to treat them effectively. The purpose of this assignment is to explore a patient’s disease to understand the nursing judgments and interventions involved, the medications for this diagnosis, and to understand the disease. The patient described in this paper will be referred to as Jonathan to ensure patient confidentiality.
What I understand of case management is that it helps Social Workers in helping their clients, meaning social workers take actions to manage the various aspects of cases they are working on. Case management is also a shared process of assessment, planning, facilitation and advocacy for decisions and services to meet an individual’s need through communication and available resources. Case management examines the person’s physical, emotional, environmental state, and promotes quality and cost-effective outcomes. In addition, in Case management the worker helps to empower the clients to become self-sufficient. Moreover, Case management is structure into six principles
Do you think that the experts' recommendations will be sufficient to get most of the administrators to fill out the rating forms properly? Why? Why not? What additional actions (if any) do you think will be necessary?