WYZ Ltd. is a manufacturing company incorporated in Ghana under the Companies Act of 2019, Act 992. After successfully conducting their external and internal audits, the company formulated and implemented some of the best strategic moves in the manufacturing industry. However, several factors hampered the delivery of the desired outcomes and the company continued to struggle with their competitiveness for several years. Required: As a Strategist, examine and recommend five (5) management and marketing issues that could be responsible for the firm’s inability to successfully implement their strategies and meet strategy expectations

WYZ Ltd. is a manufacturing company incorporated in Ghana under the Companies Act of 2019, Act 992. After successfully conducting their external and internal audits, the company formulated and implemented some of the best strategic moves in the manufacturing industry. However, several factors hampered the delivery of the desired outcomes and the company continued to struggle with their competitiveness for several years. Required: As a Strategist, examine and recommend five (5) management and marketing issues that could be responsible for the firm’s inability to successfully implement their strategies and meet strategy expectations

Contemporary Auditing

11th Edition

ISBN:9781337650380

Author:KNAPP

Publisher:KNAPP

Chapter1: Comprehensive Cases

Section1.4: Health Management, Inc.

Problem 2Q

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WYZ Ltd. is a manufacturing company incorporated in Ghana under the Companies Act of 2019, Act 992. After successfully conducting their external and internal audits, the company formulated and implemented some of the best strategic moves in the manufacturing industry. However, several factors hampered the delivery of the desired outcomes and the company continued to struggle with their competitiveness for several years. Required: As a Strategist, recommend five (5) issues, covering; management, marketing, finance & accounting, human resource and MIS, that could be responsible for the firm’s inability to successfully implement their strategies and meet strategy expectations.
You are the audit senior responsible for the audit of Sampson Limited. You are currently planning the audit for the year ended 31 December 2019. During your initial planning meeting held with the financial controller, he told you of the following changes in the company’s operations. (i) Due to the financial controller’s workload, the company has employed atreasurer. The financial controller is excited about the appointment because in the two months that the treasurer has been with the company he has realized a small profit for the company through foreign-exchange transactions in dollars. (ii) Sampson has planned to close an inefficient factory in the northern partof the country before the end of 2019. It is expected that the redeploymentand disposal of the factory’s assets will not be completed until the end ofthe following year. However, the financial controller is confident that hewill be able to determine reasonably accurate closure provisions. (iii) To help achieve the budgeted…
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Muffins LLC is a leading software solutions company in Oman, established in the year 2003. The company has branches in Dubai, Qatar and Malaysia. The company has received “the Malaysia best employer award” in the year 2020. Moreover, the company has reported 3% growth in their consolidated income during the first quarter of 2021. However, the internal auditing department of the company has raised concerns about the Business and financial risk of the companies. As a result, the board of directors has instructed Mr. Miras Ahmed to analyse the operating, financial and combined leverages of the company to take necessary steps to minimize the overall risk. Data Extracted from the financial reports of the companies are given below Item Amount / Quantity Sales 200,000 OMR Unit Sold 1000 Nos Variable cost 70 OMR Fixed Cost 30,000 OMR Interest Expenses 10,000 OMR Additional Information The corporate tax applicable for the previous assessment year was…
Southern Engineering Limited has undergone a period of substantial growth following its establishment five years ago by two engineers. Because of lack of accounting expertise within the company it has traditionally looked to its auditors, Antwi Bosiako & Associates, for accounting services in preparation of annual financial statements as well as the statutory audit function. Antwi Bosiako & Associates have also provided advice in connection with the company’s accounting and internal control systems.Discuss the difficulties which Southern Engineering Ltd might have faced in establishing efficient and effective internal control as it grew over its first five years of existence. Antwi Bosiako & Associates is a two partner firm certified accountants whose clients are mainly sole traders, partnerships and small limited companies. Although Southern Engineering Ltd was originally a typical small company client, its growth over the last five years has meant that it now accounts…
You are the audit senior responsible for the audit of Sampson Limited. You are currently planning the audit for the year ended 31 December 2019. During your initial planning meeting held with the financial controller, he told you of the following changes in the company’s operations. Due to the financial controller’s workload, the company has employed a treasurer. The financial controller is excited about the appointment because in the two months that the treasurer has been with the company, he has realized a small profit for the company through foreign-exchange transactions in dollars. explain how the components of audit risk (inherent, control or detection risk) are affected.
Softech LLC is a leading software solutions company in Oman, established in the year 2005. The company has branches in Dubai, Qatar and Malaysia. The company has received “the Malaysia best employer award” in the year 2020. Moreover, the company has reported 5% growth in their consolidated income during the first quarter of 2021. However, the internal auditing department of the company has raised concerns about the Business and financial risk of the companies. As a result, the board of directors has instructed Mr. Musharraf Ibrahim to analyse the operating, financial and combined leverages of the company to take necessary steps to minimize the overall risk. Data Extracted from the financial reports of the companies are given below Item Amount / Quantity Sales 100,000 OMR Unit Sold 1000 Nos Variable cost 40 OMR Fixed Cost 27,000 OMR Interest Expenses 3,000 OMR Additional Information The corporate tax applicable for the previous assessment year…
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Is it an entity inherent risk for the information below? Supervisors working at Marco Inc. interview all perspective employees for positions they supervise. In addition, at least one of the corporate officers also interviews each perspective employee. Most of the key employees, including the officers, have been with Marco for more than ten years. However, due to the high demand for accountants, Stephen Violet an accountant and most of the accounting staff have been employed at Marco for less than 3 years. While Marco checks references for any prospective employee, they do not check criminal records or perform other forms of background checks. If it is an inherent risk, what is the feature of the firm that will possibly affect inherent risk and explain how and why; that is whether it increases or decreases inherent risk. Please address a specific risk to the accuracy of the financial statements with the "how" and whether audit effort should be increased or decreased for specific…
You are an audit assistant within the internal audit department of Crofty, a company that manufactures household cleaning products and solutions. The company is rapidly expanding and currently employs over 2,000 staff. Turnover has increased by about 20% for the last three years, due mainly to the aggressive sales strategy employed by the sales manager. Turnover for the year ended 31 December 2020 was £100 million and profit was also high. The Crofty board of directors approved the creation of an internal audit at the beginning of 2020, to assist with the control of the company and also prepare for a possible listing on the stock exchange in 2022. The internal auditors currently report to the finance director. The CEO is keen to see the company comply with principles of good corporate governance and has requested your help with ensuring the company complies in full. Required: (a) Explain the reasons why internal auditors should or should not report their findings on internal control to…
You are an audit assistant within the internal audit department of Crofty, a company that manufactures household cleaning products and solutions. The company is rapidly expanding and currently employs over 2,000 staff. Turnover has increased by about 20% for the last three years, due mainly to the aggressive sales strategy employed by the sales manager. Turnover for the year ended 31 December 2020 was £100 million and profit was also high.The Crofty board of directors approved the creation of an internal audit at the beginning of 2020, to assist with the control of the company and also prepare for a possible listing on the stock exchange in 2022. The internal auditors currently report to the finance director.The CEO is keen to see the company comply with principles of good corporate governance and has requested your help with ensuring the company complies in full.Required: (a)Explain the reasons why internal auditors should or should not report their findings on internal control to the…
You are an audit assistant within the internal audit department of Crofty, a company that manufactures household cleaning products and solutions. The company is rapidly expanding and currently employs over 2,000 staff. Turnover has increased by about 20% for the last three years, due mainly to the aggressive sales strategy employed by the sales manager. Turnover for the year ended 31 December 2020 was £100 million and profit was also high. The Crofty board of directors approved the creation of an internal audit at the beginning of 2020, to assist with the control of the company and also prepare for a possible listing on the stock exchange in 2022. The internal auditors currently report to the finance director.The CEO is keen to see the company comply with principles of good corporate governance and has requested your help with ensuring the company complies in full. Required: Discuss the merits and shortcomings of Crofty forming an audit committee