Category: Business

The new auditor for Redline Manufacturing

Posted on | by Kelvin

 

What’s been accomplished thus far
As you’ll recall, Excelsior CPAs was engaged as the new auditor for Redline Manufacturing, effective for the audit of the financial statements for the year ended December 31, 2023. As part of your staff auditor duties, you’ve completed an analytical review of Redline Manufacturing’s balance sheet and income statement, summarized your observations about their business, and assessed Redline’s (potential) business and, therefore, audit risk.

Previously provided information about Redline is also provided in the accordion below.

Client Overview
This week’s assignment
During the planning phase of the audit, your audit manager and some other members of the audit team have been gathering additional information. This information gathering included traveling to Detroit to meet with Redline’s management team. Your job this week is to review the provided findings and observations and identify inherent risks and whether you believe they are significant. Then, considering this new information, the results of your previous analytical procedures, and other client knowledge, you will continue your assessment of the overall audit risk.

Step 1: Review the following observations from the Redline Manufacturing audit team.
Be sure to toggle the accordions below to review the complete details associated with each observation.

1. News articles with implications for the Solar-Electro division?
Excelsior CPAs have an employee who reads and summarizes articles about issues that may affect key clients. They have shared two articles.

The first article is “EPA Regulations Encouraging Solar-Powered Engines Postponed?” It suggests the regulations Redline Manufacturing management is relying upon to increase sales of the Solar-Electro division might not go into effect for at least ten years.

The second article is “Stick to Diesel, Redline!” The article claims that although Redline has proven itself within the diesel engine industry, they lack the knowledge and people necessary to perform well in the solar-powered engine industry.

2. Supplier considering Chapter 11
In reading the footnotes of the previous year’s financial statements, an audit team member has discovered that one supplier, Auto-Electro, provides over 20 percent of the raw materials used by Redline. Further investigation revealed that Auto-Electro is considering entering Chapter 11 bankruptcy proceedings due to continuing cash flow difficulties.

3. Restrictive covenants in long-term debt agreements
Several restrictive covenants have been identified in Redline’s long-term debt agreements. Two requirements are to keep the current ratio above 2.0 and debt-to-equity below 1.0. The loans become immediately due if these covenants are not met.

4. New Solar-Electro division manufacturing plant investment
During a meeting with the facilities director, the audit team learned that Redline Manufacturing’s Board of Directors has decided to raise significant debt to finance the construction of a new manufacturing plant for the Solar-Electro division. The company also plans to invest considerably in modifying the property where the future plant will be situated.

5. Significant turnover in internal audit
An inquiry into Redline Manufacturing’s internal audit team has revealed significant turnover in the internal audit department. Upon further investigation, the Excelsior CPAs audit team has determined the turnover is only present at the higher-level positions.

6. Solar-Electro inventory anomaly?
The Excelsior CPAs audit team requested a tour of the Solar-Electro facilities. While touring the warehouse, a team member noted a section of solar-powered engines that looked different from the ones advertised on Redline’s Web site. When asked when those items were manufactured, the warehouse manager responded: “I am not sure. I have been here a year, and they were here when I first arrived.”

7. Todd-Machinery relationship?
While standing in line at a vending machine, an audit team member noted a Redline Manufacturing vice president wearing a golf shirt with the words “Todd-Machinery.” As the audit team member was familiar with the company and noticed some of its repair people working in the Redline plant earlier, they approached the VP and told him they liked his shirt. The VP’s response: “Thank you. My wife and I own the company, but we hire people to manage it.”

8. Ongoing dispute with IRS?
The engagement partner from Excelsior CPAs recently revealed that Brian Sioux, an industry specialist and senior tax manager from the firm’s Ontario office, will be coming onsite to Redline’s facilities to investigate an ongoing dispute between the Internal Revenue Service and Redline.

Step 2: Assess inherent risk associated with each situation above.
Identify any risk factors associated with each situation above and then categorize each of those risk factors as one of the following:

An overall financial statement-level risk potentially affecting multiple accounts
An assertion-level risk for one or more accounts (indicate the primary balance sheet account affected)
No effect on inherent risk
Be sure to explain your decision-making process.

Our earlier video regarding inherent riskLinks to an external site. will aid your ability to complete this step (as well as step 4).

Step 3: For each situation you judge to represent inherent risk, assess if it is significant.
Explain why it is (or is not) a significant risk and what audit test(s) you might perform to address the risk.

Our earlier video regarding identifying significant risks for an audit clientLinks to an external site. will aid your ability to complete this step.

Step 4: Assess acceptable audit risk as low, moderate, or high.
This assessment should be based on the situations above, your previous analytical procedures work, and other information provided to you about Redline Manufacturing.

In making your assessment, evaluate Redline Manufacturing on the three factors that make up acceptable audit risk:

External users’ reliance on financial statements
Likelihood of financial difficulties
Management integrity
Be sure to justify your response!

Step 5: Summarize your Step 2-4 work in a single document.
Your document should be structured as follows:

Situation assessments (steps 2 and 3)

1. The number and title of the scenario/situation (e.g., 1. News articles with implications for the Solar-Electro division?)

Discussion/assessment of inherent risks
Discussion/assessment of risk significance
Same information for situations 2-8.

Overall audit risk assessment (step 4)

The Role of Control in the Management Planning Process

Posted on | by Kelvin

Toshiba Adopts Six Sigma case is an example of a company recognizing that it is out of control and adversely affecting performance and profits. They recognized that a new, fresh leader was needed to redirect efforts. They chose someone who was adaptable and willing to change, and, just as important, was open to technological innovations and unafraid to introduce and employ them. They opened the appropriate computer systems to suppliers in an effort to streamline and control materials purchasing. They actually “partnered” with their suppliers and ask for and listened to supplier suggestions.
Were the controls feedforward, concurrent, feedback?
What was the main focus of the controls Toshiba established?
How did Toshiba monitor the new controls?

 

The Importance of Strategic Risk Management for Small Businesses

Posted on | by Kelvin

 

Scenario
You serve on the board of a regional strategic committee for your local Chamber of Commerce. Due to the COVID-19 pandemic, the committee has decided to develop some resources for local small businesses to develop their risk management strategies. You are assigned the task of writing a research brief on the importance of risk management to the strategic planning process for small businesses.
Instructions
Create a research brief that addresses the following:
The importance of strategic risk management
How strategic risk management affects organizational goals
The role of corporate governance
Attribution for credible sources

Hazard from the welding area

Posted on | by Kelvin

 

Assignment Content
After your initial review of the operations and safety data sheets (SDS), you have determined the sampling you want to perform at Acme Automotive Parts (AAP). The table below lists hazards you want to sample and the sampling/analytical methods you decide to use. You can access the National Institute for Occupational Safety and Health (NIOSH) methods at https://www.cdc.gov/niosh/nmam/default.html and the Occupational Safety and Health Administration (OSHA) methods at https://www.osha.gov/dts/sltc/methods/toc.html.
Hazard
Possible Method
Occupational Exposure Limits (OEL)
Manganese Fume (Welding)
NIOSH 7302
5 mg/m3 (OSHA Ceiling)
Copper Fume (Welding)
NIOSH 7302
0.1 mg/m3 (OSHA 8-hour TWA)
Lead Fume (Welding)
NIOSH 7302
0.05 mg/m3 (OSHA 8-hour TWA)
1,2,4 trimethylbenzene (Paint)
OSHA 1020
25 ppm (ACGIH 8-hour TWA TLV)
Toluene (Paint)
OSHA 111
50 ppm (ACGIH 8-hour TWA TLV)
Xylene (Paint)
OSHA 1002
100 ppm (OSHA 8-hour TWA)
Metal Working Fluids
NIOSH 5524
0.5 mg/m3 (NIOSH 10-hour TWA REL)
Noise (throughout plant)
None
90 dBA (OSHA 8-hour TWA)
Choose one hazard from the welding area, one hazard from the paint area, and the metal working fluids, and prepare one paragraph for each hazard (three paragraphs in total) answering each of the following questions:
Which sampling media will you be using?
What flow rate will you use?
How will you calibrate the sampling train?
Calculate the minimum sampling time you will require to be able to detect concentrations at the OELs listed in the table. Show your work in calculating the sampling times.
Will you collect personal or area samples? Explain why.
Are there any compounds listed in the method that might interfere with your sample?
Are there any special storage or shipment requirements for your samples?
Prepare one paragraph that concludes how you would evaluate noise exposures in the facility. Discuss what type of sampling instrument you would use, how you would perform calibration, whether you would use personal or area samples, and which areas at the facility you would include in the evaluation.
Your assignment must be a minimum of two pages in length, not including title or reference pages. Your assignment must use at least two references. One must be gathered from the CSU Online Library; the other may be your textbook. All references and in-text citations must be formatted according to APA standards.

 

 

 

 

 

Identify the stakeholders

Posted on | by Kelvin

 

Write 2-3 pages applicable to your capstone project. Identify the stakeholders (use fictitious names for stakeholders) that will play a major part with your study and integrate with your project.
TOPIC: HAPU
Topics to include:
1. Roles of stakeholders
2. Identify your stakeholders – are they supportive to your project?
3. List of stakeholders who will be interested in the results of your project
4. Promoting stakeholder participation
5. Possible concerns/barriers from stakeholders
6. Strategies that you will use to gain support and assistance from your stakeholders

 

 

Next steps

Posted on | by Kelvin

Your company has determined that the time is right to expand globally. As a corporate manager within the organization, you have been assigned to identify and select a team of five to ten members from within the organization to explore and identify two to three managerial challenges associated with global expansion. You have been given three months to assemble your team and create a global expansion report outlining your findings to provide to the leadership team.
As the team leader, you realize you will need to identify how to successfully complete the assignment. Assuming you have completed the process of selecting your team, what are your next steps? Include in your strategy the following:
1. Analyze two to three team performance challenges that may arise and what corrective action you may employ to keep the project on track.
2. Discuss two advantages and two disadvantages of expanding globally from a leadership perspective.
3. Examine two management theories and discuss how each theory impacts managerial decisions from a global perspective.

 

 

Starbucks Strategy Selection, Implementation and Evaluation

Posted on | by Kelvin

 

Introduction
(The Introduction paragraph is the first paragraph of the paper and will describe to the reader the intent of the paper, explaining the main points covered in the paper.  This intent should be understood before reading the remainder of the paper so the reader knows exactly what is being covered in the paper. Therefore, write the introduction last to ensure all of the main points are covered.)
Alternative Strategy Generation
To generate a pool of strategies, you will look at the organization’s business-level strategy, corporate-level strategy, and global strategy. Then, using the information and data collected from your research and the analytical outcomes from (a) external factor analysis in your Project 1 and (b) internal factor analysis in Project 2, you will generate a pool of strategies.
Generate a minimum of three possible alternative strategies for the company.
Identify and discuss cultural and organizational factors that should be considered in analyzing and choosing among the alternative strategies.
Strategy Prioritization
Prioritize strategies and explain using the course material to support the reasoning – Use the tools learned in the course.
Strategy Selection
Your strategy selection will be based on the use of the Quantitative Strategic Planning Matrix (QSPM). The QSPM produces a composite analysis. A composite analysis is one in which you will bring in a combination of relevant factors from the various analyses (EFE Matrix, IFE matrix, CPM matrix, SWOT, Grand Strategy Matrix, and QSPM). The QSPM is a tool that helps determine the relative attractiveness of feasible alternative strategies based on the external and internal key success factors.
Develop a Quantitative Strategic Planning Matrix (QSPM) analysis.
Discuss the value of a QSPM analysis for strategy selection. Be specific.
Strategy Implementation
Recommend procedures for strategy implementation.
Discuss who, what and how to implement the selected strategy or strategies at the corporate level, business-unit level, and functional level.
Strategy Evaluation
Use frameworks and tools discussed throughout the course. Support the reasoning and conclusions made.
Discuss procedures for strategy review and evaluation
Discuss the appropriate evaluative measures (including who, what, when, and how at the corporate level, business-unit level, and functional level)
Discuss a corrective action plan (including who, what, when, and how) at the corporate, business unit, and functional levels.
Conclusion
Create a conclusion. The Conclusion is intended to emphasize the purpose/significance of the analysis, emphasize the significance/consequence of findings, and indicate the wider applications derived from the main points of the project’s requirements. Finally, you will conclude the findings of the external environment analysis.

 

 

 

 

Kraft Foods Marketing Strategy

Posted on | by Brian Leakey

Evaluate Marketing Website Assignment: Access the following Website: https://www.myfoodandfamily.com/
Kraft Foods uses this Website as a part of its marketing strategy. Review the Website and write a 2 page paper on its effectiveness as a marketing tool. Include the things that you feel work well and the things that you feel could be done better.

Business analysts say that physical retail stores are in decline

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Business analysts say that physical retail stores are in decline, while e-commerce websites such as Amazon are more popular than ever. Do you agree? Why or why not?
Provide significant discussion information with APA citations for quotes or paraphrases and provide the research link that you have used to help you understand the question.