Premium Essay

Case 1.1 Waste Management

In:

Submitted By DSmalls310
Words 440
Pages 2
Danielle A. Smalls ACC 747 Advanced Topics in Auditing
July 21, 2015 Case 1.1 Waste Management

Case 1.1 Waste Management: The Expense Recognition Principle

1. The expense recognition principle also known as the “matching” principle is when expenses should be recognized in the same period as the revenues to which they relate. This principle is important to users of financial statements because if this principle is not followed stakeholders of a company can be deluded to thinking a company is earning profits when it really is not. Which would lead investors into investing in a company they normally would not.

2. Waste management violated the expense recognition principle by making numerous unsupported changes to the estimated useful lives and/or salvage values of one or more categories of vehicles, containers and equipment. Such changes reduced the amount of depreciation expense recorded in a particular period. An entry that may have been use by Waste Management for fraud would be a debit to the accumulated depreciation and a credit to the depreciation expense.

3. Paragraph 2 of PCAOB Auditing Standard No. 5 states “effective internal control over financial reporting provides reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes. 3/ If one or more material weaknesses exist, the company's internal control over financial reporting cannot be considered effective. 4/” Waste Management did not have an effective system of internal control over financial reporting related to the depreciation expense recorded in its financial statements. Reason being because thy most often made improper transactions during the fourth quarter in violation of the expense recognition rule.

4. After consulting paragraphs 5-6 of PCAOB Auditing Standard No. 15 the type of

Similar Documents

Premium Essay

Cost Reduction

........................... 1 Introduction...................................................................................................... 2 The Real Cost of Printing ................................................................................ 3 The Myth of the Paperless Office.................................................................... 5 Stacks of Wasted Pages at the Printer ........................................................... 7 The GreenPrint Solution.................................................................................. 9 GreenPrint Case Study: Savills ..................................................................... 13 Summary ....................................................................................................... 15 Contact Information ....................................................................................... 16 © September 2008 Version 1.1 -1- GreenPrint Technologies www.printgreener.com Introduction In the past few years there has been a significant shift in corporate America and beyond toward a dual awareness of internal efficiency and environmental impact. “Carbon Neutral” was named word of the year in 2006 by The New Oxford American Dictionary, which seems to be an accurate reflection of the shift that’s taking place in America. At the same time, the increased price of energy and nearly all other basic commodities has significantly increased the costs of doing business and necessitated cutting...

Words: 4394 - Pages: 18

Premium Essay

Audit

...CASE 1.1: Waste Management: the Matching Principle 1. The definition and the importance of matching principle under GAAP Matching principle: Expenses have to be matched with revenues as long as it is reasonable to do so. Expenses are recognized not when the work is performed, or when a product is produced, but when the work or the product actually makes its contribution to revenue. Only if no connection with revenue can be established, cost may be charged as expenses to the current period. The matching principle plays an important role in the recording of expenses. First, since the matching principle recognizes expenses in the period in which related revenues are recognized, it affects a company’s bottom line reported in the income statement. Second, it facilitates a more accurate evaluation of actual profitability and performance during the period in question of a company. 2. Waste Management’s violation of matching principle The matching principle requires that companies depreciate the cost of the asset over its expected life span. Waste Management made unsupported changes to the estimated useful lives and salvage values of its assets. It violated the matching principle by posting depreciation expenses that did not match the revenues recognized in a specific period. Consequently, the understated depreciation expenses also affected the bottom line on the financial statements which delivered misleading profitability information to the investors. 3. Whether...

Words: 547 - Pages: 3

Premium Essay

Solid Waste Management Research Paper

...CHAPTER 1 INTRODUCTION 1.1 General For the sustainable development of the society it is very important to judiciously handle the environmental issues like the solid waste management. In order to manage the solid waste effectively we need to understand the composition and all the activities that follow once the waste is generated. Basically the composition and the characteristics of the waste depends a whole lot of factors and also vary periodically. Different approaches can be employed for the management of the solid waste, depending upon the factors such as the varying composition and quantity. The management of solid waste becomes further more necessary with the increasing pollution due to the solid waste and the out coming consequences...

Words: 959 - Pages: 4

Premium Essay

Production Plan Sample

...III. Production and Operations plan Product Design and/or Business model Key Networks -Goldsboro Commercial, Inc. (packaging) -Chocolate Lover, Inc. (chocolates) -Peotraco Industries (flour) -DW Plastic Corporation (straw) -Aquapure (water) -BRS Apartments (warehouse) -Food Bizz (stall) -SM Business Center (location) Key Partners -Emilisa Salih (General Manager) -Shepherd Busto (Operations Manager) -Kimberly Ragasa (Marketing Manager) -Charlene Sorilla (Finance and HR Manager) Key Activities -Supply the raw materials needed. -space for the further processing of raw materials (not included in stall process) -construction of the stall -stall location Key Resources - containers and foils -straws -chocolate bars -flour -water -warehouse -stall -location Value Propositions -Grab N Go snack - all-in-one -Low cost -snack food -new to the snack market, since it provides 3-in-1 snack meal. -innovative packaging -new to the customers but medium barriers to entry because of uncertainty of intellectual property (packaging based from another country) -Quality product making using technologies -Specially made for students. -Cold Drink but hot and freshly made churros, quick punch straw. Customer Relationship -friendly employees that can accommodate customers at any age. -Maintaining cleanliness in workplace -brand establishment Distribution Channels -Intramuros stall -Franchises (if any) -Schools (to be able to get in touch...

Words: 6774 - Pages: 28

Premium Essay

Hospitals Drive in Lean Organizations

...Case study # 1: Hospitals are driving toward a leaner organization Case study # 1 1. The best perspective of organizational effectiveness that describes the application of lean management practices is organizational learning perspective. This perspective focuses on the most value input as known as knowledge. Organizational learning is founded on the idea that organizational effectiveness depends on the organization’s capacity to acquire, share, use, and store valuable knowledge (Mcshane & Von Glinow, 2012). Sunderland Royal hospital engages in organizational learning perspective through learning lean management from external knowledge. Sunderland’s employees took tour at Nissan Factory to acquire and share knowledge from Nissan work plant, and later they applied and stored knowledge in their work unit. Employees always play critical role in this process and they are important intellectual capital of learning organizations. They can use and share knowledge through the process by mapping out their work process and identifying ways to reduce waste process. As Sunderland’s employees discovered ways to reduce average patient’s wait time, they can improve efficiency and quality service. Also, many other health care around the world apply lean management in their organization by receiving lean training from Japan. Flinders Medical center also learned and adopted lean knowledge after seeing South Australian Medical Facility experienced problem of overload patients in its emergency...

Words: 680 - Pages: 3

Premium Essay

Human Behavior in Organizataion

...Case Analysis: 1.1 Hospitals are Driving toward a Leaner Organization Background: To obtain sustainable organizational efficiency and service quality, many hospitals have adopted an Open Systems Perspective by using “lean management” procedures borrowed from leading car manufacturers, in an effort to “reduce and remove waste from work processes”. These processes improved organizational efficiency reduced costs and provided better patient care. i What ‘seems’ to be the Problem: Secondary Symptoms Full waiting rooms, long wait times, inefficient use of supplies and budgets, needless stress and high mortality rate is feedback from the external environment that the hospitals are not meeting the needs of their stakeholders, or fitting in with their environment. Before adapting lean management processes, hospital staff and patients alike shared the burden of what appeared to be the inevitable consequences of health care delivery and a closed systems perspective.ii These problems are manifestations of organizational deficiencies which negatively affect the quality of patient care, the distribution of hospital resources and employee morale. The Real Reasons Hospitals are Facing Difficulties: Primary Problems The secondary symptoms are indicative of underlying issues, highlighting their poor organizational-environmental fitiii and the ineffectiveness of communication between Internal Subsystems.iv To a large extent hospitals have not adapted to their external environment nor have hospitals...

Words: 1413 - Pages: 6

Premium Essay

Public Disclosure Authorized

..... ..... :. s~: ... - Public Disclosure Authorized a ........ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~. ................. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ .... - ........ ........... _ - Public Disclosure Authorized .... .... ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~.... -,// ... ..... ...... 1 I ... . .... .. ..... I 9~~~~~~~... . . .. .. .. . .. A ~~ ~~~~...... Public Disclosure Authorized ..... The WorldBankis committed knowledgesharingwhichinvolvesnot only the Bank's to communities practiceand their partners,but the entire development of community. processof A knowledge management essentialto makesense out of and act upon the vast quantitiesof is information available today.Still in the earlystagesof implementation, knowledge management is expectedto changethe internaloperationof the WorldBankand transformthe organization's relationships with externalclients,partnersand stakeholders, becominga key way of doing businessin the 21stCentury. Giventhe speedof globalchangeand the value of learningfromongoingactivities, Urban the Development Divisionand GlobalUrbanPartnership the WorldBankare committed of to communicating resultsof the Bank'surbanworkto the development the communityas quickly and clearlyas possible. Towardthat end, this informalor 'gray paper'series is publishedin print, with abstracts furnishedon-lineat www.worldbank.org. The Urbanand LocalGovernment WorkingPapersSeriespresentscurrentresearch...

Words: 17738 - Pages: 71

Premium Essay

Livoria

...Date: Jan 4, 2013 To: Paul Livoria and Sam Livoria From: Dev Das Introduction Livoria Sandwiches needs to achieve growth in sales to reach $1.1 million in Net Income by 2015 while paying off its litigation payment of $500,000 by May 2015 and back taxes of $22,500 by Q1 2013. This report will analyze the two options available namely diversifying the menu or converting the business to a franchise and identify the alternative that will achieve growth targets and meet payment obligations. Financial Assessment Livoria Sandwiches has a good underlying business model and financial performance in 2012 except for the litigation charge (See Appendix 4). Contribution margin % was 53% compared to the industry’s 45%. This means Livoria’s costs of labour and materials as a percentage of sales are lower than the industry. As well, sales grew by 5% versus industry growth of 1% meaning that Livoria has taken market share from its competitors, an indication of the high quality of the sandwiches. Operating income % excluding the litigation charge is 24% compared to the industry’s 18%. This indicates that fixed operating and manufacturing costs as a percentage of sales are also lower than industry averages. Analysis of the issues and the related alternatives Alternative 1: Diversify menu in existing locations Pros: a) Maintains the tradition and quality of sandwiches b) Customers like the layout of the restaurant and its unique decor c) Takes advantage of the fact that Dawkins has the...

Words: 2221 - Pages: 9

Premium Essay

The Role of Zoom Lion in the Management of Solid Waste in the Wa Municipality

...DECLARATION The group hereby declares that except for references to other people’s work, which has been acknowledged, this dissertation is the outcome of our own independent investigation under the supervision of Mr. Sumani John Bosco. NAME ID SIGNATURE GYAMFI KINGSLEY KWAKU IDS/3498/06 ………………………….. JEBUNI BERNARD IDS/3548/06 …………………………. SALIA ELIZABETH ZENABU IDS/3794/06 ………………………… YANGFO JACOB IDS/3902/06 ………………………… ZIEM ABRAHAM IDS/3934/06 ………………………… …………………………… Mr. Sumani John Bosco (Supervisor) Date…………………….. DEDICATION This work is dedicated to the parents and relatives of the group members for their love, care, prayers and support. ACKNOWLEDGEMENT The group wishes to render its first thanks to the Almighty God without whose divine intervention the work would not have been possible. We also acknowledge the immense contribution of the chiefs, elders and people of Zanko and Sokpayiri communities who contributed in diverse ways to making our research a successful one. The group also...

Words: 13524 - Pages: 55

Free Essay

Apology Letter

...Review Case 1.1 Explain how Henry Miller uses outside resources to drive innovation. Identify the additional resources might they need if expanding to a new market like Malaysia. Henry Miller work is innovated by his own expertise, but does not end there. Instead of creating the designs for his company within, he outsources the company’s creative work to professional designers and fully understands that he could benefit from the creativity of his staff as well. By allowing his staff to take part in design, he is able to generate unlimited ideas, which means the company’s chances of producing quality designs are greater. I like the fact that his company focuses on “green” production and design by recycling waste and using resources from renewable supply sources to support our environment. If he would like to expand to a new market like Malaysia, he and his staff should study the culture of Malaysia, and create designs in demand in this specific marketplace. If he hired local people from Malaysia, he would better understand the culture, and that could be of great advantage because hiring the right people matters. Mr. Miller could sponsor a trip for his employees to Malaysia where they could meet with potential co-workers from Malaysia in an effort to determine goals, challenges and opportunities in the specific marketplace. Boone, L. & Kurtz, D. . Contemporary business: 2011 custom edition (13th ed.). Hoboken, NJ: John Wiley & Sons. Review Case 1.1 Considering each...

Words: 505 - Pages: 3

Premium Essay

Devry Gscm 520 Week 3 Quiz

...Devry GSCM 520 Week 3 Quiz IF You Want To Purchase A+ Work Then Click The Link Below , Instant Download http://www.hwspeed.com/Devry-GSCM-520-Week-3-Quiz-776666665.htm?categoryId=-1 If You Face Any Problem E- Mail Us At JOHNMATE1122@Gmail.Com Page 1 Question 1.1. (TCO 6) The philosophical leaders of the quality movement, Philip Crosby, W. Edwards Deming, and Joseph M. Juran, had the same general message about what it took to achieve outstanding quality. Which of the following was not part of that message? (Points : 3) Quality is free Leadership from senior management Customer focus Total involvement of the workforce Continuous improvement Question 2.2. (TCO 6) Fishbone diagram as part of a six-sigma quality improvement process might be found in which DMAIC category? (Points : 3) Define Measure Analyze Improve Control Question 3.3. (TCO 6) A Pareto chart as part of a six-sigma quality improvement process might be found in which DMAIC category? (Points : 3) Define Measure Analyze Improve Control Question 4.4. (TCO 6) Which of the following is not an analytical tool used in six-sigma quality improvement programs? (Points : 3) Flow charts Run charts Control charts Pareto diagrams Decision diagrams Question 5.5. (TCO 6) The Malcolm Baldrige award selection process helps...

Words: 457 - Pages: 2

Premium Essay

Discussion 1

...irrigation, human consumption, as well as livestock consumption. Since water is a flow resource, it is affected by activities that have nothing to do with it. For example, a small feedlot may be on top of a hill, when the livestock waste runs to lower ground, it runs in the nearby canal, which then empties into the creek will affect neighboring water tables. This can contaminate the drinking water in the wells. The Federal government has imposed regulations of waste water through the Department of Environment Quality. Early in our history, America was quite delinquent with our management of waste. Perhaps the land seemed vast and lack of scientific knowledge led to poor waste management. Because of these practices, many drinking water sources were contaminated with harmful toxins. The Love Canal was a catalyst that got the federal government involved. “Though the federal government had established a long history of oversight of water resources…it was not until 1965 that the federal government finally put the solid waste problem on par with protection of water resources” (Roberts, 2011, sec. 1978-1980). State regulating agencies such my home state, Oregon Department of Environmental Quality, have the latitude to regulate how citizens put in their waste systems. It is easier for state agencies to have a better idea of managing these guidelines since onsite visits would nearly be impossible if the...

Words: 966 - Pages: 4

Premium Essay

Inventory

...REPORT Improved waste management of textiles Project 9 Environmentally improved recycling David Palm B1976 April 2011 This report approved 2011-04-20 Anna Jarnehammar Department Manager Organization Report Summary Project title IVL Swedish Environmental Research Institute Ltd. Address P.O. Box 5302 SE-400 14 Göteborg Telephone Towards Sustainable Waste Management – Environmentally improved recycling Project sponsor Swedish Environmental Protection Agency +46 (0)31-725 62 00 Author David Palm Title and subtitle of the report Improved waste management of textiles Summary In Sweden, we consume 15kg of textiles per capita and year. Of this roughly 8kg are incinerated and 3kg are reused by charity organisations. The remaining 4kg either accumulates (e.g. in a closet or wardrobe) or are handled through other means of waste management (e.g. recycling centres). This way of waste management is not optimal from an environmental point of view. The textile waste flows are small by weight but large by environmental impact. The production of virgin textiles give rise to about 15 kg of carbon dioxide per kg textile and uses large amount of water; energy and chemicals and poses a risk both for the environment and human health. Policies and measures to reduce the consumption of virgin textile are needed. Hindrances for a more sustainable textile waste management are primarily economical: The environmental cost is not incorporated in the production...

Words: 7053 - Pages: 29

Premium Essay

Cp Green Project

...Project selection and integration management Since there were 3 short-list projects can be implemented. We need to compare them and choose one for implementation. First, we will list some criteria for chosen the project to implement. 1. Support key business objectives. As for this, we need the project can present an information which contain the environmental protection information to the customers and community. These environmental protection information or Green information must contain some activities like Recycle, Reduce and Reuse. The majority business objective in this topic is to create a Green image for the airline. So the project should be strong in this criterion. 2. Has strong internal sponsor As for this, if a project can be run successful, the internal support in the company’s different department is required! Like the project 1, we need to have a co-work with Food & Beverage Department. If the FB department dislikes the project then the project won’t be run success. 3. Acceptance of the society. This criterion is important. Some project need customer support so much like project 3. If the customers don’t agree the project, the project will fail. 4. Realistic level of technology. As a project sometimes might need to use some machines and technologies to help it. But may be some technology still not emergence. We might want to have a machine can absorb the rubbish then produce some useful product, but this is impossible in today. So we need to identify the...

Words: 2251 - Pages: 10

Premium Essay

Hospital Efficiency

...1. What perspectives of organizational effectiveness best describe the application of lean management practices? Describe how specific elements of that perspective relate to the interventions described in the case study. The case study in question shows many benefits of hospitals around the world adapting to lean management practices. Essentially they are looking to cut waste, and provide the most efficient care possible. The first perspective of organizational effectiveness the hospitals are utilizing is an organizational learning perspective. The hospitals have identified in their studies that several sources of capital influence their effectiveness. Specifically, human and structural capitals are being utilized to benefit the organization. “Lean works because it is based on doctors, nurses, and other staff leading the process and telling us what adds value and what doesn’t. They are the ones who know.” (McShane (2012). Organizational Behavior: Case Study 1.1. McGraw-Hill). Here, an emphasis is placed on human capital, and the knowledge, experience, and know-how hospital employees bring to the process. By bringing these individuals into the decision making process who have their hands in the work day in and day out, the outcome will be a more efficient, and smoothly running operation as evidenced by the case study. Building on the human capital used, the hospitals are also using a high performance work practice perspective. The hospital is packaging together the best use...

Words: 658 - Pages: 3