Professional judgment framework Fraud risk assessment Part I: Background Jameson Family Farms (JFF), a family owned business, grows, processes and packages a range of fruits and vegetables, but primarily specializes in growing and selling peanuts. The company has a niche for selling their particular salted and unsalted peanuts to grocery stores and baseball stadiums in the southeastern region of the US. The product offerings have been stable over the last five years, but the company began internet sales in 2010, which increased sales by about $19 million in 2010 over 2009. The commodity business for peanuts, however, is very competitive and seven to eight major companies vie for US sales. JFF’s has annual audits for lending …show more content…
operations Jameson Family Farms Results of operations Actual Projected 2007 2008 2009 2010 2011 2012 Commercial sales $71,690,000 $71,110,000 $63,310,000 $63,200,000 $64,500,000 $66,530,000 Internet sales 19,450,000 26,360,000 32,250,000 Gross sales 71,690,000 71,110,000 63,310,000 82,650,000 90,860,000 98,780,000 Sales returns and allowances (1,870,000) (1,900,000) (1,630,000) (1,970,000) (1,820,000) (850,000) Net sales 69,820,000 69,210,000 61,680,000 80,680,000 89,040,000 97,930,000 Cost of goods sold (55,970,000) (55,120,000) (47,990,000) (66,380,000) (75,370,000) (82,080,000) Gross profit 13,850,000 14,090,000 13,690,000 14,300,000 13,670,000 15,850,000 Selling, general and administrative expenses (11,420,000) (11,410,000) (11,400,000) (11,610,000) (11,620,000) (11,530,000) Other income (expense), net 170,000 (180,000) 150,000 320,000 (290,000) (190,000) Pretax income 2,600,000 2,500,000 2,440,000 3,010,000 1,760,000 4,130,000 Taxes (780,000) (750,000) (732,000) (903,000) (528,000) (1,239,000) Net income $ 1,820,000 $ 1,750,000 $ 1,708,000 $ 2,107,000 $ 1,232,000 $ 2,891,000 Quarterly results of operations Actual Projected First quarter Second quarter Third quarter Fourth quarter Annual 2012 2012 2012 2012 2012 Commercial sales $15,720,000 $15,910,000 $17,230,000 $17,670,000 $66,530,000 Internet sales 6,940,000 7,220,000 8,815,000 9,275,000 32,250,000 Gross sales 22,660,000 23,130,000
The Auditor, an instructional novella written by James K. Loebbecke, tells the story of Jack Butler, a man from the San Francisco Bay area, who goes to college, majors in accounting, and goes to work for a large accounting firm referred to as “The Firm.” The story is loosely based upon the real world experiences of the author, and is written to give students a look into the world of public accounting that goes beyond a textbook. The Auditor not only gives students a chance to follow Jack Butler’s journey up the company ladder at The Firm, but also reiterates the relative importance of conventional lessons learned in school.
Direct Competitors - Jolson Hoist's direct competitors include those that sell any type of
Evidence of his wife’s adultery was presented at trial and the husband was granted a divorce on that ground by the trial court. Derby v. Derby, 378 S.E. 2d 74 (Va. Ct. App. 1989) The trial court also held that the separation agreement was invalid due to terms of unconscionability and constructive fraud or duress. Derby v. Derby, 378 S.E. 2d
• Improve case management system to identify cases filed under multiple overlapping jurisdictions to avoid conflicting court order, duplicative services, ineffective use of judicial resources, and easy identification of duplicative jurisdictional cases for consolidation.
Provided Case 09-3, we, Group 7 have dutifully researched the topic, using resources at our disposal to formulate a consistent, clear and legal response. The following submission outlines the case, our conclusions with supporting evidence and the accounting issues present in the subject.
There are four things that an auditor needs to assess prior to performing an audit:
Ann Inc. has a seven member Board that serves the interest of Ann Inc. and its investors. Four of the seven members of the Board of Directors would be considered to be Independent Members by the SEC rules. Five of the presiding members are listed:
CompetitionCJ is # 2 in RTE caramel popcorn market, with untapped potential identified by FL teams.Competition is actively advertising consumers.Manufacturing & DistributionFL has strong Domestic and International distribution channels and relationships.
Trend analysis, common-size financial statements, and ratios are presented for the Brody Corporation in Figure 5.4. Assume that you are auditing Brody 's financial statements for the year ended 12/31/X8. You have performed tests of controls over the recording of gross sales and believe that the system is operating effectively and that 7 percent represents an accurate estimate of the increase in gross sales for 20X8 over the amount for 20X7. You should also assume that the financial statements for 20X6 and 20X7 are not misstated.
Joe Coulombe started Trader Joe’s in 1967. Traded Joe’s can be characterized as a low cost, high quality grocery store. Eighty percent private label product mix, expanding its target markets, keeping costs down, and extremely effective marketing powers Trader Joe’s increase popularity. Since 2002, the market value of private food label has risen twelve percent (Datamonitor, 2008). This essay
The purpose of this memo is to update you on the status of the P-Card audit. To date, Best Auditors Co. have finished a handful of analytical procedures to serve as a jumping off point for the rest of the audit.
JBS USA is the top competitor for Tyson because they are one of the largest companies in places like Brazil, they conduct a strong workforce with over 125,000 employees, and they have plants in Brazil, USA, Argentina, and Australia. This brand is being sold in nearly 110 countries worldwide. They have become a strong brand in the industry. Although they are a popular brand for foods, they are limited in their presence in developing economies (MBA Skool, 2011-2015).
The standards by which financial statements are reported are known as Generally Accepted Accounting Principles (GAAP) (Finkler, Jones, & Kovner, 2013). The United States (US) recognizes GAAP to be a set of rules used by accountants in financial reporting (Finkler et al., 2013). The United States-GAAP (US-GAAP) were established by the Financial Accounting Standards Board (FASB) (Finkler et al., 2013). The US-GAAP are primarily used in the US whereas many other countries have adopted their own general accounting standards known as the International Financial Reporting Standards (IFRS) (Finkler, Ward, & Calabrese, 2013). The IFRS were established by the International Accounting Standards Board (IASB) and have both similarities and differences to the US-GAAP (Finkler et al., 2013). The purpose of GAAP are to standardize the manner in which the financial status of an organization is interpreted so financial information is useful for investors, lenders and those that an organization is accountable to or compared to (Finkler et al., 2013).
During Transnet’s 2015 financial year they recognised revenue under IAS 18: Revenue. During the same financial year a new standard to account for revenue was issued namely IFRS 15: Revenue from contracts with customers. The reasons for issuing a new standard was because IAS 18 was broad and therefore lead to confusion and inconsistencies in the treatment of similar transactions. The new standard results in different accounting implications in the annual financial statements of Transnet. To evaluate the accounting implications of IFRS15 it must be compared with IAS 18. One major implication is the change from recognising revenue from services rendered by using the percentage of completion method that is stated in IAS 18. IFRS 15 recognises revenue either over-time or at a point in time.
Audit cycle performance consists of several stages and the basic first stages are planning and preliminary survey in order to obtain general information on all areas and aspects of the audited company as well as the company 's activities and strategies that can be obtained in a short period of time. To accomplish these stages, some important points is needed including the understanding of the entity, identifying the key areas (key control), set the objectives and scope of the audit, determine the criteria of the audit, identify the audit evidence, prepare the preliminary survey, organize the preparation of the detailed test program, collect and test the audit evidence, and lastly generate the audit working papers.