Dell, Inc. Research & Application 2-28

1568 WordsAug 16, 20117 Pages
Dell, Inc. Research and Application 2-28 Managerial Accounting BUS 630 Professor Ruizhen Hardin July 18, 2011 Outline I. Research and Application 2-28 a. What is Dell’s strategy for success in the marketplace? Does the company rely primarily on a customer intimacy, operational excellence, or product leadership customer value proposition? What evidence supports your conclusion? b. What Business risks does Dell face that may threaten its ability to satisfy stockholder expectations? What are some examples of control activities that the company could use to reduce these risks? (Hint: Focus on pages 7-10 of the 10-K.) c. How as the Sarbanes-Oxley Act of 2002 explicitly affected the disclosures contained in Dell’s 10-K report?…show more content…
In addition Dell’s reliance on suppliers also creates risk and uncertainties. “Reliance on suppliers, as well as industry supply conditions, generally involves several risks, including the possibility of defective parts (which can adversely affect the reliability and reputation of Dell’s products), a shortage of components and reduced control over delivery schedules (which can adversely affect Dell’s manufacturing efficiencies), and increases in component costs (which can adversely affect Dell’s profitability).” (Form10-K 2005 p9) c. Dell conducted their audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). “Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.” (Form10-K 2005 p34) The report of the independent registered public accounting firm now has to certify that the company 's internal control over its financial reporting is effective whereas before Sarbanes-Oxley Act of 2002 all that was require was that of an independent accountants so as to certify only the presentation of the financial statements and there were no requirements for any additional disclosure on the company 's controls and procedures to be included in the financial statements. d. “Note 1 – Description of Business Summary
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