If you are an IT auditor, then the management told you that one of their former employee was hired in a competitor company. Allegedly, the former employee is bringing notable growth to that competitor company. The manager is worried as their company slowly declining in terms of profitability. He ask your advice on the matter. What advise should you give?
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- Consider the dilemma you might someday face if you are the CFO of a company that is struggling to satisfy investors, creditors, stockholders, and internal company managers. All of these financial statement users are clamoring for higher profits and more net assets (also known as equity). If at some point, you suddenly found yourself not meeting the internal and external earnings and equity targets that these parties expect, you would probably search for some way to make the financial statements look better. What if your boss, the CEO, suggested that maybe you should make just one simple journal entry to record all the goods that your company is holding on consignment, as if that significant amount of goods were owned by your company? She might say that this action on your part would fix a lot of problems at once, since adding the consigned goods to merchandise inventory would simultaneously increase net assets on the balance sheet and increase net income on the income statement (since it would decrease cost of goods sold). How would you respond to this request? Write a memo, detailing your willingness or not to embrace this suggestion, giving reasons behind your decision. Remember to exercise diplomacy, even if you must dissent from the opinion of a supervisor. Note that the challenge of the assignment is to keep your integrity intact while also keeping your job, if possible.Mr. Abdullah is an auditor in XYZ LLC. His job is to see the correctness of financial statements and to give suggestions. He came to know that his company is entering into a new product line, so he started discussing about it on various places and about its projection in the future. In this situation there is a chance of _________________. a. None of the options b. Familiarity threat c. Self review threat d. Advocacy threat Clear my choiceQuestion 1: What Would Your Accountant Say? The chief executive officer of a business start-up wants the firm to acquire an accounting information system. In response to this request, the firm’s purchasing officer stated, “We should put out bids for an AIS and select the least expensive bid that comports with our existing hardware.” You are the chief accounting officer for the company and your strongly disagree with the purchasing officer's plan. Why?
- Accountants play an important role within an organization. Without the proper tools and resources, they would not be as efficient or effective in their jobs. Discuss the value that an AIS system brings to an organization. In what ways do accounting information systems enable companies to not only become more productive but also provide the ability to compete with others on a global scale?\\nProvide 2-3 ways in which you have experienced the value of AIS from a professional or personal level.As Elaine Black reflects on her meeting with Jim Saxton and Peter Greyton, she considers where the company has been and where it is heading, and ponders the current issues regarding Robatelli's accounting information systems and its ability to take and record sales. She is concerned about the limitations of the current accounting information system. Are internal controls strong enough? Would a new, integrated IT system yield improvements? As she contemplates the integration of the POS systems at the restaurant locations with the GL software at the home office, she wonders about the requirements for developing and implementing such a system, and how to best utilize the system to support Robatelli's plans for growth. Elaine realizes that her ability to address these issues will be critical not only to the success of the company but also to her career. Briefly describe the differences in Robatelli's three order-entry systems (in-store, telephone, and Internet). For each method,…As Elaine Black reflects on her meeting with Jim Saxton and Peter Greyton, she considers where the company has been and where it is heading, and ponders the current issues regarding Robatelli's accounting information systems and its ability to take and record sales. She is concerned about the limitations of the current accounting information system. Are internal controls strong enough? Would a new, integrated IT system yield improvements? As she contemplates the integration of the POS systems at the restaurant locations with the GL software at the home office, she wonders about the requirements for developing and implementing such a system, and how to best utilize the system to support Robatelli's plans for growth. Elaine realizes that her ability to address these issues will be critical not only to the success of the company, but also to her career. Briefly describe the differences in Robatelli's three order-entry systems (in-store, telephone, and Internet). For each method,…
- My own business experience supports this statement. By the time individuals have a few years of business experience, they have developed great technical skills and can assemble,analyze, and categorize data to make solid business decisions. In the end, however,they are often unable to communicate the results of their analysis effectively. WhenI speak to senior executives and inquire about educational needs, the conversationinvariably turns to communications. In accounting, by necessity, we focus onfinancial and quantitative data, but it is important to remember that as accountantswe must be able to present the results of our analysis or studies to management.Through effective communications, accountants can truly impact business decisionsand make their careers soar. Situation for Analysis: Grayslake Novelty produces and sells a small novelty item through tourist shops in Chicago and other northern Illinois locations. Last year the company sold 198,400 units of one of its products. The…Which of the following are examples of financial objectives that a company might choose to pursue? A Provision of good wages and salaries B Restricting the level of gearing to below a specified target C Dealing honestly and fairly with customers on all occasions D Producing environmentally friendly products Which of the following is true? A Management accounting is highly regulated B Financial accounting is highly regulated C Management accounting is externally focused D Financial accounting is only internally communicated Which of the following is NOT a connected stakeholder? A Shareholders B Customers C Competitors D Local community…Indicate whether each of the following statements is true or false. 1. When designing an accounting system, you need to think about the needs and knowledge of both the top managers and various other users. TrueFalse 2. When the environment changes as a result of technological advances, increased competition, or government regulation, an accounting system does not have to be sufficiently flexible to meet the changes in order to save money. TrueFalse 3. In developing an accounting system, cost is relevant. The benefits obtained from the information disseminated must outweigh the cost of providing it. TrueFalse
- How can the qualitative relevance characteristic be improved in high-quality accounting information? Do not simply repeat what it is, provide suggestions as to how a particular part of the qualitative characteristics could be improved. Please provide different answers and explanations than copy and pasting: “Accounting information is relevant if it can provide helpful information about past events and help in predicting future events or in taking action to deal with possible future events. For example, a company experiencing a strong quarter and presenting these improved results to creditors is relevant to the creditors' decision-making process to extend or enlarge credit available to the company.”You are a Senior Manager in Federer & Co, a firm of Chartered Certified Accountants offeringaudit and assurance services mainly to large, privately owned companies. The firm has suffered from increased competition, due to two new firms of accountants setting up in the same town. Several audit clients have moved to the new firms, leading to loss of revenue, and an over staffed audit department. Ann Agassi, one of the partners of Federer & Co, has asked you to consider how the firm could react to this situation. Several possibilities have been raised for your consideration: 1. Several audit clients are experiencing staff shortages, and it has been suggested that temporary staff assignments could be offered. It is envisaged that a number of audit managers could be seconded to clients for periods not exceeding six months, after which time they would returnto Federer & Co. Required: Identify and explain the fundamental ethical principle and ethical threat involved for Federer…You are a Senior Manager in Federer & Co, a firm of Chartered Certified Accountants offering audit and assurance services mainly to large, privately owned companies. The firm has suffered from increased competition, due to two new firms of accountants setting up in the same town. Several audit clients have moved to the new firms, leading to loss of revenue, and an over staffed audit department. Ann Agassi, one of the partners of Federer & Co, has asked you to consider how the firm could react to this situation. Several possibilities have been raised for your consideration: 1. Nadal Co, a manufacturer of electronic equipment, is one of Federer & Co.’s audit clients. You are aware that the company has recently designed a new product, which market research indicates is likely to be very successful. The development of the product has been a huge drain on cash resources. The Managing Director of Nadal Co has written to the audit engagement partner to see if Federer & Co…