Pa1 Assign

In: Business and Management

Submitted By xiao999
Words 2824
Pages 12
Before you begin the assignment for Module 1, please click the Module 1 assignment link in the online course navigation
pane for instructions on how to complete and submit your responses for marking.
Part A: Multiple-choice questions
For multiple-choice questions, select the best answer. Answer each item by giving the number of your choice. Incorrect
answers will be marked as zero. Please include your answers to the Part A multiple-choice questions with your answer to
Part B.
Question 1
(20 minutes)

Fine Fertilizers Limited (FFL) produces a line of lawn fertilizers that are manufactured under controlled
conditions to ensure the ingredients are stored carefully and mixed in the correct quantities. FFL has many
competitors in the industry ranging from small private companies to large public companies. Recent news
articles in the fertilizer industry have highlighted the need for a focus in environmental concerns. The CEO has
decided that FFL should consider the implementation of an environmental scorecard.
Which of the following is the best reason to use an environmental scorecard?

The scorecard promotes good corporate citizenship.
FFL can compare its scorecard rating to its competitors.
It is an effective measure in a bonus plan to increase net profit.
It enables FFL to measure its efficiency in producing fertilizer.

b. In order to make the financial statements of Genex Inc. more appealing to investors and to inflate the
management bonus, a manager has engaged in earnings manipulation. As you begin to prepare for the interim
audit, you have been alerted to this activity. Which management actions will you look for as evidence that the
investors’ interests are not being protected?

Overstated revenues and assets
Overstated expenses and liabilities

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