Question 1
In a recent survey concerning company sales and net earnings, 11 companies responded. Data analysis was computed, letting sales ($ thousands) be the independent variable, and net earnings ($ thousands) be the dependent variable. ?The results are as follows: Regression Analysis Observations n=11 Intercept -1.34 Sales coefficient 0.08 Coefficient of Correlation r=0.604 Value of t statistic t=2.397 Using this information, answer the following questions. a) Use the regression line above to estimate the net earnings for a company with sales of $33.2 thousand.?For full marks, estimate your answer to the nearest dollar. Earnings = $? b)Given the regression equation provided above, which of the following statements is most appropriate regarding company sales and earnings? 1.Positive sales means positive net earnings for any business. 2.Sales have no effect on net revenues. 3.Insufficient sales can lead to net losses for some businesses. 4.After a certain level of sales has been reached, net earnings stop growing entirely. c)Based on the coefficient of correlation, which of the following statements is most appropriate regarding the strength of the association between company sales and earnings? The intervals for strong positive, moderate positive, weak positive, weak negative, moderate negative, and strong negative correlation all have the same length on the interval [-1,1]. 1.There is a strong positive relationship between sales and net earnings. 2.There is a moderate positive relationship between sales and net earnings. 3.There is a weak positive relationship between sales and net earnings. 4.There is a weak negative relationship between sales and net earnings. 5.There is a moderate negative relationship between sales and net earnings. 6.There is a strong negative relationship between sales and net earnings.
Question 2
Problem 1 (5 Points) . For each situation (1-5), identify the most applicable AICPA rule of conduct and whether there is a violation or no violation of the rule (A-F). One or more letters may not be used. Rule 101: Independence; no violation Rule 101: Independence; violation Rule 301: Confidential Client Information; no violation Rule 301: Confidential Client Information; violation Rule 503: Commissions and Referrals; no violation Rule 503: Commissions and Referrals; violation ______ 1. Brandon Frisby, CPA, found out that his client, Uptonogood, Inc., had failed to properly account for several leases. Frisby informed Uptonogood's management that he must issue a qualified audit report and disclose the lease problem in the report. Uptonogood's management indicated that such a disclosure would constitute a disclosure of confidential information. Nevertheless, Frisby rendered the qualified audit report, including an explanatory paragraph about the inadequate lease accounting. ______ 2. Priscilla Hudson, CPA, a partner in Hudson and Danhoffer, CPAs, holds the position of honorary director for the Friends of the Symphony Orchestra, a firm audit client. ______ 3. The wife of Gerald Skoch, CPA, is the controller of Fine Corporation. Skoch is an audit partner for Barnes and Bucknell, CPAs, in their Long Island office. The Long Island office of Barnes and Bucknell audits Fine Corporation, but Skoch is not part of the audit team and provides no other services to Fine Corporation. _______4. Johnny Beacon, CPA, is the auditor of Novak Wholesale, Inc. Beacon received a 10% commission from Computer Systems, Inc. for hardware sold to Novak Wholesale, Inc. The sale was made based on Beacon's recommendation to Novak Wholesale that the company needed a new accounting information system. Beacon disclosed the commission to Novak's management. Beacon also performs an annual audit for Novak. ______ 5. Cecilia Hart, CPA, provides tax services to Myers Company. Hart received a 10% commission from Computer Systems, Inc. for hardware sold to Myers Company. The sale was made based on Hart's recommendation to Myers Company that the company needed a new accounting information system. Hart disclosed the commission to Myers' management. Problem 2 (4 Points) The audit risk model includes the four risks listed below. Place the correct letter of the type of risk with the related definition below. A. Inherent risk B. Audit risk C. Control risk D. Detection risk ___1. The probability that audit procedures will fail to produce evidence of material misstatements. ___2. The probability that material misstatements have occurred in transactions entering the accounting system. ___3. The probability that an auditor will give an inappropriate opinion on financial statements. ___4. The probability that the client's internal control policies and procedures will fail to detect material misstatements if they have entered the accounting system. Problem 3 (3 Points) : ABC Company had a major sale to XYZ Company. This ale accounted for 20% of the revenue of ABC Company. The auditors performed the audit procedures listed 1 ? 3. For each audit procedure select the ASB transaction assertion that is most likely being tested. A. Occurrence B. Completeness C. Cutoff D. Accuracy E. Classification ______ 1. The auditor reviewed the shipping documents to check the date that product was shipped to XYZ Company. ______ 2. The auditor reviewed the shipping documents to ensure that all product included in the sales revenue to XYZ had been shipped. ______ 3. The auditor reviewed the invoice sent to XYZ Company to ensure that XYZ had been properly billed. Problem 4 (10 Points) : For each of the matters below, indicate through the appropriate letter the group of generally accepted auditing standards to which the matter is most closely related. A. General standards B. Standards of field work C. Standards of reporting _______ 1. The mental attitude and impartiality of auditors. _______2. Auditors' overall conclusion of the fairness of the client's financial statements. _______3. The use of an audit program to identify audit procedures to be performed during the engagement. _______4. Auditors' assessment of control risk after performing tests of controls. _______5 Accounting firm policies with respect to the level of expected continuing professional education. _______6. Client's disclosure of all pending litigation against the client at year end. _______7. The hierarchical review process used to evaluate the appropriateness of audit documentation prepared by assistants. _______8. Auditors' requests to obtain bank statements directly from institutions with whom the client does business. _______9. The client's use of accounting principles that are consistent with those used in prior years. _______ 10. Actions taken by auditors to communicate their level of involvement with and responsibility assumed for the client's financial statements. Short Answer Questions (14 Points) 1. The CPA firm of SKL, CPAs, accepted an engagement to audit the financial statements of PINS Inc. a new client. PINS is a publicly held retailing entity that recently replaced its operating management. In the course of applying audit procedures, SKL discovered that PINS?s financial statements may be materially misstated due to the existence of fraud. Required (9 points) : (a.) Describe SKL, CPAs responsibilities in the circumstances described above. (b.) Describe SKL?s responsibilities for reporting on PINS financial statements and other communications if SKL is precluded from applying necessary procedures in searching for frauds. (c.) Describe SKL?s responsibilities for reporting on PINS financial statements and other communications if SKL concludes that PIN?s s financial statements are materially affected by fraud. 2. (5 Points) Analytical procedures consist of evaluations of financial information made by a study of plausible relationships among both financial and nonfinancial data. They range from simple comparisons to the use of complex models involving many relationships and elements of data. They involve comparisons of recorded amounts, or ratios developed from recorded amounts, to expectations developed by auditors. Required: A. Describe the broad purposes of analytical procedures B. Identify at least three (3) sources of information from which an auditor develops expectations.,Sorry Michael, but there is no answers on this document, maybe you include the wrong sheet. Please attached correct sheet with answers.
Question 3
I am looking for answers for 6 qustions and this question about the case called "NIBCO?s ?Big Bang?: An SAP Implementation" Pages 514-529 (Case Study III-7).in book, "Managing Information Technology, 6th edition by (Martin, Brown, DeHayes, Hoffner, Martin, Perkins) Pearson Prentice Hall, 2009 1. Why did NIBCO decide to purchase an ERP system? 2. Why did it choose a Big Bang approach, rather than the 3-to-5 year plan suggested by the consulting firm? 3. Describe the pros and cons of a Big Bang approach, versus a less risky rollout strategy. If you had been the IS head at NIBCO, what approach would you have recommended and why? 4. A TIGER triad led the NIBCO approach. What do you see as the pros and cons of this approach? 5. Comment on the number of key managers that were selected to serve on the project team, and whether this was a success factor or not. 6. Critique the change management initiatives associated with this project. I wish u can do it. and this is the frist time dealing with u.,NIBCO?s ?Big Bang?: An SAP Implementation (Assignment Questions) 1. Why did NIBCO decide to purchase an ERP system? 2. Why did it choose a Big Bang approach, rather than the 3-to-5 year plan suggested by the consulting firm? 3. Describe the pros and cons of a Big Bang approach, versus a less risky rollout strategy. If you had been the IS head at NIBCO, what approach would you have recommended and why? 4. A TIGER triad led the NIBCO approach. What do you see as the pros and cons of this approach? 5. Comment on the number of key managers that were selected to serve on the project team, and whether this was a success factor or not. 6. Critique the change management initiatives associated with this project.,hey
Question 4
26. A company had net income of $250,000. On January 1, there were 12,000 shares of common stock outstanding. On May 1, the company issued an additional 9,000 shares of common stock. The company declared a $7,900 dividend on its noncumulative, nonparticipating preferred stock. There were no other stock transactions. The company had an earnings per share of: (Points : 2) $13.45 $13.89 $11.53 $26.90 Amount cannot be determined as problem does not state if there are any dividends in arrears 27. Shamrock Company had net income of $30,000. On January 1, there were 8,000 shares of common stock outstanding. On April 1, the company issued an additional 2,000 shares of common stock. There were no other stock transactions. The company has an earnings per share of: (Points : 2) $3.75 $3.00 $3.33 $15.00 $3.16 28. A bond traded at 102 ? means that: (Points : 2) The bond pays 2.5% interest The bond traded at $1,025 per $1,000 bond The market rate of interest is 2.5% The bonds were retired at $1,025 each 29. A company issues 9%, 20-year bonds with a par value of $750,000. The current market rate is 9%. The amount of interest owed to the bondholders for each semiannual interest payment is. (Points : 2) $0 $33,750 $67,500 $750,000 $1,550,000 30. Which of the following statements is true? (Points : 2) Interest on bonds is tax deductible Interest on bonds is not tax deductible Dividends to stockholders are tax deductible Bonds do not have to be repaid 31. Net income divided by net sales is equal to the: (Points : 2) Return on total assets Profit margin Current ratio Total asset turnover Days' sales in inventory 32. A company has sales of $5,417,000, a gross profit ratio of 35%, ending merchandise inventory of $201,425, and total current assets of $1,539,600. What is the days sales' in inventory ratio for the year? (Points : 2) 6.10 20.88 26.15 22.67 15.77 33. Comparative financial statements in which each amount is expressed as a percentage of a base amount and in which the base amount is expressed as 100%, are called: (Points : 2) Comparative statements Common-size comparative statements General-purpose financial statements Base line statements Index statements 34. The comparison of a company's financial condition and performance across time is known as: (Points : 2) Horizontal analysis Vertical analysis Political analysis Financial reporting Investment analysis 35. A company's transactions with its creditors to borrow money and/or to repay the principal amounts of loans are reported as cash flows from: (Points : 2) Operating activities Investing activities Financing activities Direct activities Indirect activities 36. The ability to meet short-term obligations and to efficiently generate revenues is called: (Points : 2) Liquidity and efficiency Solvency Profitability Market prospects Creditworthiness 37. Wessen Company reports net income of $180,000 for the year ended December 31, 2010. It also reports $45,800 depreciation expense, $21,410 amortization expense and a $15,000 gain on the sale of machinery. Its comparative balance sheets reveal a $28,300 increase in accounts receivable, $20,400 decrease in accounts payable, $10,470 increase in prepaid expenses, and $33,140 decrease in wages payable. What is the net cash flows provided (used) by operating activities using the indirect method? (Points : 2) ($140,200) $133,490 $139,900 ($133,490) $78,300 38. The indirect method for the preparation of the operating activities section of the statement of cash flows: (Points : 2) Separately lists each major item of operating cash receipts Separately lists each major item of operating cash payments Reports net income and then adjusts it for items necessary to determine net cash provided or used by operating activities Is required if the company is a merchandiser 39. A machine with a cost of $130,000 and accumulated depreciation of $85,000 is sold for $50,000 cash. The amount that should be reported as a source of cash under cash flows from investing activities is: (Points : 2) $50,000 $5,000 $45,000 Zero. This is an operating activity Zero. This is a financing activity 40. The measurement of key relations among financial statement items is known as: (Points : 2) Financial reporting Horizontal analysis Investment analysis Ratio analysis Risk analysis 41. The average number of times a company's inventory is sold during an accounting period, calculated by dividing cost of goods sold by the average inventory balance is equal to the: (Points : 2) Accounts receivable turnover Inventory turnover Days' sales uncollected Current ratio 42. Internal users of financial information: (Points : 2) Are not directly involved in operating a company Are those individuals involved in managing and operating the company Include shareholders and lenders Include directors and customers Include suppliers, regulators and the press 43. A company has a profit margin of 5%. If net income is equal to $83,000 and average total assets is equal to $45,000, how much are net sales? (Points : 2) $4,150 $2,250 $1,660,000 $6,400 $128,000 44. The reporting of net cash provided or used by operating activities that lists the major items of operating cash receipts, such as receipts from customers and subtracts the major items of operating cash disbursements, such as cash paid for merchandise is referred to as the: (Points : 2) Direct method of reporting net cash provided or used by operating activities Cash basis of accounting Classified statement of cash flows Indirect method of reporting net cash provided or used by operating activities Net method of reporting cash flows from operating activities 45. One of several ratios that reflects solvency includes the: (Points : 2) Acid-test ratio Current ratio Times interest earned ratio Total asset turnover Days' sales in inventory 46. Financial reporting refers to: (Points : 2) The application of analytical tools to general-purpose financial statements The communication of relevant financial information to decision makers Financial statements only Ratio analysis Profitability 47. The ability to generate future revenues and meet long-term obligations is referred to as: (Points : 2) Liquidity and efficiency Solvency Profitability Market prospects Creditworthiness 48. A company had net cash flows from operations of $120,000, total cash flows of $500,000 and average total assets of $2,500,000. The cash flow on total assets ratio equals: (Points : 2) 4.8% 5.0% 20.0% 20.8% 24.0% 49. Dividing ending inventory by cost of goods sold and multiplying the result by 365 is equal to the: (Points : 2) Inventory turnover ratio Profit margin Days' sales in inventory Current ratio Total asset turnover 50. Trend analysis is also called: (Points : 2) Financial analysis Ratio analysis Index number trend analysis Industry analysis
Question 5
Create a 10 slide Microsoft PowerPoint presentation (not including cover and reference slide) explaining how understanding differences in values across cultures can be used by managers when interacting with employees from different countries. After reading the section in Chapter 5 on international values, select one country, then research the Kaplan library or Internet to find additional information on that country. In your Microsoft PowerPoint presentation address the following : 400 words Chapter 5 on international values One of the most widely referenced approaches for analyzing variations among cultures was done in the late 1970s by Geert Hofstede. 82 He surveyed more than116,000 IBM employees in 40 countries about their work-related values and found that managers and employees vary on five value dimensions of national culture: ? Power distance. Power distance describes the degree to which people in a country accept that power in institutions and organizations is distributed unequally. A high rating on power distance means that large inequalities of power and wealth exist and are tolerated in the culture, as in a class or caste system that discourages upward mobility. A low power distance rating characterizes societies that stress equality and opportunity. ? Individualism versus collectivism. Individualism is the degree to which people prefer to act as individuals rather than as members of groups and believe in individual rights above all else. Collectivism emphasizes a tight social framework in which people expect others in groups of which they are a part to look after them and protect them. ? Masculinity versus femininity. Hofstede?s construct of masculinity is the degree to which the culture favors traditional masculine roles such as achievement, power, and control, as opposed to viewing men and women as equals. A high masculinity rating indicates the culture has separate roles for men and women, with men dominating the society. A high femininity rating means the culture sees little differentiation between male and female roles and treats women as the equals of men in all respects. ? Uncertainty avoidance. The degree to which people in a country prefer structured over unstructured situations defines their uncertainty avoidance . In cultures that score high on uncertainty avoidance, people have an increased level of anxiety about uncertainty and ambiguity and use laws and controls to reduce uncertainty. People in cultures low on uncertainty avoidance are more accepting of ambiguity, are less rule oriented, take more risks, and more readily accept change. ? Long-term versus short-term orientation. This newest addition to Hofstede?s typology measures a society?s devotion to traditional values. People in a culture with long-term orientation look to the future and value thrift, persistence, and tradition. In a short-term orientation , people value the here and now; they accept change more readily and don?t see commitments as impediments to change. How do different countries score on Hofstede?s dimensions? Exhibit 5-7 shows the ratings for the countries for which data are available. For example, power distance is higher in Malaysia than in any other country. The United States is very individualistic; in fact, it?s the most individualistic nation of all (closely followed by Australia and Great Britain). The United States also tends to be short term in orientation and low in power distance (people in the United States tend not to accept built-in class differences between people). It is also relatively low on uncertainty avoidance, meaning most adults are relatively tolerant of uncertainty and ambiguity. The United States scores relatively high on masculinity; most people emphasize traditional gender roles (at least relative to countries such as Denmark, Finland, Norway, and Sweden). You?ll notice regional differences. Western and northern nations such as Canada and the Netherlands tend to be more individualistic. Poorer countries such as Mexico and the Philippines tend to be higher on power distance. South American nations tend to be higher than other countries on uncertainty avoidance, and Asian countries tend to have a long-term orientation. Hofstede?s culture dimensions have been enormously influential on OB researchers and managers. Nevertheless, his research has been criticized. First, although the data have since been updated, the original work is more than 30 years old and was based on a single company (IBM). A lot has happened on the world scene since then. Some of the most obvious changes include the fall of the Soviet Union, the transformation of central and Eastern Europe, the end of apartheid in South Africa, and the rise of China as a global power. Second, few researchers have read the details of Hofstede?s methodology closely and are therefore unaware of the many decisions and judgment calls he had to make (for example, reducing the number of cultural values to just five). Some results are unexpected. Japan, which is often considered a highly collectivist nation, is considered only average on collectivism under Hofstede?s dimensions. Despite these concerns, Hofstede has been one of the most widely cited social scientists ever, and his framework has left a lasting mark on OB. Recent research across 598 studies with more than 200,000 respondents has investigated the relationship of cultural values and a variety of organizational criteria at both the individual and national level of analysis. Overall, the four original culture dimensions were equally strong predictors of relevant outcomes, meaning researchers and practicing managers need to think about culture holistically and not just focus on one or two dimensions. Cultural values were more strongly related to organizational commitment, citizenship behavior, and team related attitudes than were personality scores. On the other hand, personality was more strongly related to behavioral criteria like performance, absenteeism, and turnover. The researchers also found that individual scores were much better predictors of most outcomes than assigning all people in a country the same cultural values. In sum, this research suggests that Hofstede?s value framework may be a valuable way of thinking about differences among people, but we should be cautious about assuming all people from a country have the same values. The GLOBE Framework for Assessing Cultures Begun in 1993, the Global Leadership and Organizational Behavior Effectiveness (GLOBE) research program is an ongoing cross-cultural investigation of leadership and national culture. Using data from 825 organizations in 62 countries, the GLOBE team identified nine dimensions on which national cultures differ. Some?such as power distance, individualism/collectivism, uncertainty avoidance, gender differentiation (similar to masculinity versus femininity), and future orientation (similar to long-term versus short-term orientation)?resemble the Hofstede dimensions. The main difference is that the GLOBE framework added dimensions, such as humane orientation (the degree to which a society rewards individuals for being altruistic, generous, and kind to others) and performance orientation (the degree to which a society encourages and rewards group members for performance improvement and excellence). Which framework is better? That?s hard to say, and each has its adherents. We give more emphasis to Hofstede?s dimensions here because they have stood the test of time and the GLOBE study confirmed them. However, researchers continue to debate the differences between them, and future studies may favor the more nuanced perspective of the GLOBE study.
