...1. Introduction Ocean Manufacturing Inc. is a home appliances manufacturer with a favorable market position looking to be listed at NASDAQ within the next few years. Apart from requesting an audit, B&F is asked to provide assistance with regard to the upcoming IPO and Ocean’s newly installed IT system. This paper is structured in two different memos. The first one elaborates on the evaluation of Ocean from five critical standpoints and concludes with an opinion on whether to accept the engagement. The latter one points out five critical factors, which have to be taken into account when the audit is accepted. 2. Independence review While establishing the audit team, independence requirements have to be fulfilled. It is crucial that all the individuals assigned to the audit are independent of Ocean. After conferring to the report of disclosed stock investments it turns out that a partner at the Salt Lake City office owns common stock in a venture capital fund which in turn holds shares in Ocean. The partner in question is not part of the audit team and the holding in Ocean represents a marginal share of the total funds’ holdings. Since the partner will not be in touch with the customer Ocean, and the amount of shares the fund has invested in Ocean is negligible, the authors can conclude that there are no independence issues at hand and Ocean could be accepted as a client. 3. Financial comparison When comparing the financial statements the first matter of concern...
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...non-financial information before making an engagement for audit. Barnes Fischer’s is an auditing company which will investigate Ocean Manufacturing and upon evidence will decide whether to accept them as a client or not. Ocean Manufacturing, Inc. Ocean Manufacturing, Inc. is a small- to medium- sized company which manufactures home appliances such as toasters, blenders, and trash compactors. In the past few years the company used to supply with moderate products at an affordable prices. The company sells its products to small retail stores at small quantity. And it only operates nationwide. However, the company is planning to be listed in NASDAQ and want their financial statements to be audited by a professional accounting firm. Internal Control of Ocean Manufacturing, Inc. Cash and Account receivables control According to the case study, Ocean Manufacturing has high accounts receivables, and if high accounts receivables it means most of the company cash in wedged in receivables account. In addition to that, Ocean Manufacturing staffs are also frustrated because they said that receivables billings are often late and inaccurate. This information strongly tells that the company’s receivables control is very weak. However, this affects the cash control, thus weak cash control can lead to liquidity problems in the company whereby, company will face shortage of cash to meet its short term obligations. Inventory control Ocean Manufacturing’s accounting and control system have problems...
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...Case 1.1: Ocean Manufacturing, Inc. Ocean Manufacutring Inc The New Client Acceptance ... www.studymode.com/.../ocean-manufacutring-inc-the-new-client-accept... Ocean Manufacturing, Inc.: the New Client Acceptance Decision: Case 1.1 Ocean ... Problem Solution: Harrison-Keyes Inc. Ayodeji Ajayi University of Phoenix ... Ocean Manufacturing, Inc.: The New Client Acceptance ... www.freecasestudysolutions.com/case-study-Ocean-Manufacturing-Inc-... Case 1.1 Ocean Manufacturing, Inc.: The New Client Acceptance Decision Ocean Manufacturing, Inc. is recommended as a ... ORDER NEW SOLUTIONS ... Solution Manual for Auditing Cases An Interactive Learning ... testbanksfor.com › All test banks and solution manuals Download Solution Manual for Auditing Cases An Interactive Learning Approach 5th Edition by Beasely. Solution Of Ocean Manufacturing Inc Free Essays 1 - 30 www.papercamp.com/group/solution-of-ocean-manufacturing.../page-0 Free Essays on Solution Of Ocean Manufacturing Inc for students. ... ACCT 805AE Case 4 Ocean Manufacturing, Inc The Osprey Group Feb 21, ... Auditing: r c aSe S t h at diSc uSS topicS rel ated to thiS Section 1.1 Ocean Manufacturing, Inc. . Case 1 1 Ocean Manufacturing Inc Free Essays 1 - 30 www.papercamp.com/group/case-1-1-ocean-manufacturing-inc/page-0 Case 1.1 Ocean Manufacturing, Inc.: The New Client Acceptance Decision Ocean Manufacturing, Inc. is recommended as a prospective audit client of Barnes ... 60 Free Essays on Ocean Manufacturing...
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...지난 1주 지난 1개월 지난 1년 기간 설정... 기간 맞춤설정 시작일종료일 ------------------------------------------------- 양식의 맨 위 양식의 맨 아래 모든 결과 모든 결과 사전 완전일치 서울특별시 서울특별시 * 자동검색됨 * ------------------------------------------------- 양식의 맨 위 양식의 맨 아래 검색결과 약 935,000개(0.27초) 검색결과 웹문서 [PDF] client acceptance - Textbook Test Banks textbooktestbank.com/.../BBGP_InstructorResource_... * 저장된 페이지 이 페이지 번역하기 acceptance decision process. To raise ... gathered in the client acceptance process can ... Ocean Manufacturing, Inc. are in the healthcare services industry. Ocean Manufacturing Inc The New Client Acceptance Decision Free ... www.studymode.com/.../ocean-manufacturing-inc-t... * 저장된 페이지 이 페이지 번역하기 20개 항목 - Free Essays on Ocean Manufacturing Inc The New Client ... Case 1.1 Ocean Manufacturing, Inc.: The New Client Acceptance Decision ... Ocean Manufacturing, Inc. The New-Client Acceptance Decision ... Ocean Manufacturing, Inc. - Research Paper - Svenjaj88...
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...CASE 1.1 Ocean Manufacturing, Inc. The New Client Acceptance Decision [2] What nonfinancial matters should be considered before accepting Ocean as a client? How important are these issues to the client acceptance decision? Why? I believe the IT issues are important to consider but after speaking to Barnes and Fischer’s IT department they feel that diagnosing the weakness in controls that they should be able to handle the IT system being used. I also feel that the turnover is important but that this turnover was due to personal issues so this can also be disregarded. The fact that the company is considering IPO in the future would be a great investment in Barnes and Fischer to broaden the industry representation. I believe these are all very important when deciding to represent this company. [5] [a] Prepare a memo to the partner making a recommendation as to whether Barnes and Fischer should or should not accept Ocean Manufacturing, Inc. as an audit client. Carefully justify your position in light of the information in the case. Include consideration of reasons both for and against acceptance and be sure to address both financial and nonfinancial issues to justify your recommendation. See first memo [b] Prepare a separate memo to the partner briefly listing and discussing the five or six most important factors or risk areas that will likely affect how the audit is conducted if the Ocean engagement is accepted. Be sure to indicate specific ways in which the audit firm should...
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...(REQUIRED) 1. The client acceptance process can be quite complex. Identify five procedures an auditor should perform in determining whether to accept a client. Which of these five are required by auditing standards? 2. What nonfinancial matters should be considered before accepting Ocean as a client? Howimportant are these issues to the client acceptance decision? Why? 3. Using Ocean’s financial information, perform the following analytical procedures in order to gather valuable planning information. You can use spreadsheet, and be sure to turn in a printout of your work: (a) Change Analysis. Calculate the dollar and percentage increase or decrease in the various balance sheet and income statement account balances between the fiscal years ended 2007 and 2008. Use the following column headings: Per Per Audit Books Dollar Percent 12-31-07 12-31-08 Change Change Index your working paper PL-1. (b) Common Size Financial Statements. From the figures found on the income statement working trial balance, calculate sales returns and expense accounts as a percentage of gross sales for the years 2007 and 2008. Use the following four column headings: Per 2007 Per 2008 Audit Percent of Books Percent of 2007 Gross Sales 2008 Gross Sales Index your spreadsheet working paper PL-2. (c) Financial Ratios. Calculate Ocean’s financial ratios to reveal any problem areas and be in a position to assess the financial condition of the company.Compare Ocean’s...
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...professionals on the payroll. Firm provides auditing and tax services, also builds information systems for the consulting side of business for non-audit clients, or clients who have not publicly traded. first assignment as an audit mangager is to assist an audit partner on a client acceptance decision. prospective client is OCEAN MANUFACTERING medium sized manufacturer of small home appliances. At a local chamber of commerce meeting, the president met the company’s president. The company decided to end its relationship with its current auditor because they want to build a relationship with a more nationally established CPA firm because the company want to make an initial public offering IPO of its common stock within the next few years. Ocean’s annual financial statements have been audited each of the past 12 years to comply with the debt covenants and to receive interest rate on the company’s existing line of credit. The December 31 fiscal year has passed so NOW it is the time for the company to contract with a new auditor to get the audit under way. Our partner Jane Hunter is intrigued with the idea of having a client in the home appliance industry. Especially oceans, because it has a favourable market position and growth potential!! Our company never had a client in this industry (small home appliances) before. Most of our audit clients are in the healthcare services industry. For us it is an excellent opportunity to enter a new market!! but, our partner wants...
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...12 | Professionalism & ethics | 3 (LO 1, 3-7) & Chap.18 (LO2) | | Half Empty * | | 4 | May 14 | Preliminary Audit PlanningI | 5 pg. (LO 1-5) | 300 | Ocean Mfg Inc.The questions to answer are available on Learn | Hand in to Drop Box Question 4 Answer should be approx. 1 page | 5 | May 19 | Preliminary Audit Planning II | 5 pg. (LO 6-8) | 300 | T DC 5-6 b & d onlyT 5-10 all | | 6 | May 21 | Assessing risk & Internal controls I | 6 pg.(LO 1-5) Appendix A&B | 330 | Apple Inc. | Hand in to Drop BoxQ 1 onlyAnswer should be max. 2 pages | 7 | May 26 | Assessing risk & Internal controls II | 6 pg. (LO 6-7) | | T DC 6-8 | | 8 | May 28 | Planning | | | Modern Tastings * | Hand in to Drop Box | | June 2 | Cancelled | | | | | 9 | June 3 | Review | | | Toy Factory | | MT # 1 | June 4 | Mid-term #1 | | | | | 10 | June 9 | Fraud risk assessment | 7 | 240, 250 | Laramie Wire | | 11 | June 11 | Audit Evidence | 8 | 230, 500, 520, 520 | Dog Ate my working papers * | Hand in to Drop Box | 12 | June 16 | Control Assessment & Testing I | 9 LO 1-5 | | Past exam question to be posted on learn | | 13 | June 18 | Control Assessment & Testing II | 9 LO 6-7 | | Howard Street Jewelers | Hand in to Drop Box | 14 | June 23 | Sampling | 10 | 500, 530 | Hooplah Inc. Part A | | 15 | June 25 | Audit of Revenue Receivable & Receipt process | 11 LO 1-3 | 520 | Simply Soup | | 16 | June 30 | Testing of Sales &...
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...Identify special circumstances or unusual risks • Assess competency to perform the audit • Evaluate independence • Determine ability to use due care Auditing standards require competency, independence and due care. [2] The return on equity and assets along with the debt to equity ratio is lower than the industry. The profit margin is much greater than the industry average. These increased profits, if sustained, can keep the debt to equity ratio below average. [3] Evaluating the integrity of management is vital. If management is dishonest the engagement should not be accepted. In this case, management was honest and disclosed the past auditor differences of opinion and allowed the audit firm to talk to the previous auditor. The special circumstance of the goal of an IPO is an important consideration. Given the lack of experience in this industry and the lofty goal of the company, the audit firms’ legal liability is increased. In a litigious society, we decline any clients that put our firm at great risk. [4] [a] Having the CPA firm help develop and improve the IT system is beneficial for the company as it provides one stop shopping. Often it is easier to work with someone who is vested in other areas of your business. On the other hand, this creates an issue that they would be developing that which they will audit. The Sarbanes Oxley Act Section 201 restricts non-audit services for issuers. In this case, technology services could be viewed as financial...
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...Differences in air pressure are caused by unequal heating of the atmosphere. Cool air has higher air pressure so it flows underneath the warm, less dense air. Winds that blow over short distances and are caused by unequal heating of Earth’s surface within a small area. Waves Waves start in the open ocean The size of a wave depends on the strength of the wind, the length of time that it blows, and the distance over which it blows Waves move energy, not water. The water in a wave does not actually move forward, just the energy generated by the wind. The wind affects the water at the surface more than it does the deep water. As waves approach the shore, the water becomes shallower. The bottom of the waves begin to touch the sloping ocean floor. Friction between the ocean floor and the water causes the waves to slow down. As the speed of the wave slows down the shape of the wave begins to change Near the shore wave length decreases and wave height increases. When the wave reaches a certain height, the crest of the wave topples. CURRENT: A current is a large stream of water that flows through the ocean Two types of currents Surface Currents Driven mainly by the wind They follow Earth’s major wind patterns which move in a circular pattern Due to the Coriolis effect, currents in the Northern Hemisphere curve to the right and to the left in the Southern Hemisphere A surface current warms or cools...
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...overall trend toward increased precipitation and evaporation, and more intense weather systems, in the form of violent rainstorms, blizzards and sun-baked, drier soils. The Facts—What Do We Already Know About Changing Global Conditions (Global Warming)? Global temperatures are rising. Observations collected over the last century suggest that the average land surface temperature has risen 0.45-0.6°C (0.8-1.0°F) in the last century. Precipitation has increased by about 1 percent over the world's continents in the last century, with more rain in high latitudes and less rain in many tropical areas. Sea levels have risen approximately 15-20 cm (6-8 inches) worldwide in the last century, due to melting mountain glaciers and ocean expansion from warmer ocean temperatures. The Future—What Predictions Can We Make About...
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...The Ocean The ocean makes up around 70% of the Earth’s surface. It is divided into several separate oceans which interconnect bodies of salt water. The major oceans are the Pacific, Atlantic, Indian, Southern, and Artic Ocean. The ocean has many functions. It keeps the Earth’s temperature moderate by absorbing solar radiation. It is then stored as heat energy which is distributed around the globe by the ocean currents. This keeps the land and air warm during the winter and cools it down during the summer. According to MarineBio, temperature and density share an inverse relationship. As temperature increases, the density—spaces between the water molecules—decreases. On the other hand, salinity and density share a positive relationship. As density increases so does the salinity—the amount of salt in the water. Temperature will always change within the depths of the ocean because warm seawater floats and cold seawater sinks. When the temperature, density, or salinity of a layer of ocean changes rapidly, the region is known as a cline. Thermoclines are areas of rapid change in temperature, where most people swim in the ocean and are the most important. Pycnoclines are areas of rapid change in density and haloclines are areas of rapid change in salinity. Living in San Francisco, the ocean is pretty hard to ignore. Around my neighborhood tons of people head out to Ocean Beach on a hot sunny day. Watching the waves go back and forth from the shore to the ocean is hypnotizing...
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...Causes of Global Warming and its present and future impacts on South-West Western Australia Global Warming is an issue at the heart of modern civilisation. The prospect of a rapidly changing global enviroment is enough to cause considerable concern towards life on earth for future generations. Therefore it is important to understand how climate change works, what is causing the climate to change, what effects these changes are having, and how they may continue to affect the global environment. What causes the environments on earth unable to support life? What can be done about these predictions of climates in the future? How will these climate changes affect South-West Western Australia? How does climate change work? Climate change is a natural process that has been functioning on earth for billions of years, it is the regulator of the earth's abililty to support life by the cycles of The Greenhouse Effect. The Greenhouse Effect has made the earth an environment for supporting life through the cycling of energy from the sun via short-wave radiation, which heats the earths surface, then is released into the atmopshere as long-wave radiation. This cycle is made possible by the prescence of Greenhouse gases, which redside in the earths atmopshere, and absorb most of the long-wave radiation given off by the earth, with the remainder being expelled into space. This process cycles the heat from the sun around the earths atmosphere and a climate is the result, without this circulation...
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...rays from the sun are absorbed by water vapor that is naturally in our atmosphere. Water vapor accounts for ?80 percent of natural greenhouse warming. The remaining 20 percent is due to other gasses that are present in very small amounts? (Murck, Skinner and Porter 488). Carbon dioxide is also a big absorber of the sun?s heat rays. Humans can cause a lot of carbon dioxide to be released. Every time we burn fossil fuels, we release more carbon dioxide. Emissions from cars also increase the amount of carbon dioxide in the atmosphere. If there is more carbon dioxide in the atmosphere more rays from the sun are absorbed. This will cause the atmosphere and the earth?s temperature to warm. The warming of the earth will cause the oceans to become warmer. When they heat up, more water is evaporated, causing more carbon dioxide to be released into the atmosphere. Once this process starts, it is extremely hard to control. If the temperature keeps rising, more carbon dioxide will...
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...CHICKENS OF THE SEA Not long ago, a friend once told me that he heard Jessica Simpson say on television, that a brand of canned tuna called “Chicken of the Sea” literally means, chickens that live in the sea. As we all know chickens cannot naturally live in the sea due to their physical deficiencies in water. In other words, the only way chickens could live under the sea is if the company invested billions into undersea chicken farms. For example, They could build giant undersea domes just like Sandy Peaches, in the hit kids television show “Spongebob Squarepants”. Furthermore the labeling itself states quite clearly that the food product contained in the tin is in fact tuna. Now, if the label didn’t say anything about tuna on the front It would be very easy to confuse the product with chicken, but that is not the case for this specific brand. In addition, tuna in general is very different from chicken in so many aspects, that it is really hard to confuse tuna with chicken. The textures, colors, and taste are so different that anyone who has ever eaten both tuna and chicken, could easily differentiate between the two products. Jessica Simpson’s statement is a falsehood that can be proven wrong with simple observation. First, chickens cannot live in the sea due to the fact that they have evolved on land for millions of years. Everything about their bodies have been finely tuned for living life on the surface of the world. Resulting in different organs compared to marine...
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