Audit Case Study Sunbeam's Culture
1. How did pressures for financial performance contribute to Sunbeam’s culture, where quarterly sales were manipulated to influence investors? To what extent do you believe the Andersen auditors should have considered the resulting culture in planning and executing its audit?
Before Chainsaw Al was brought in as CEO at Sunbeam, Sunbeam had already experienced financial distress. Sunbeam was pressured to fix their financial issues, and were looking at all options on how to solve their internal crisis. They brought in Chainsaw Al, who had a reputation of cutting companies to the bone. Sunbeam senior management wanted to, “create the illusion of a successful restructuring of Sunbeam in orderto inflate its stock price and thus improve its value
…show more content…
They also help evaluate financial statement information by showing the relationships between financial and nonfinancial data. Auditors can use these procedures and relationships to obtain evidence about the reasonableness of the amounts provided by the client. Substantial changes from the prior year to the current year give the auditor a questioning mind on certain accounts, and makes the auditing process smoother and more efficient.
Auditors could use certain techniques to perform analytical procedures during an audit, such as an analysis of trends and ratios, complex regression modeling of many relationships and data for many years. This could include comparing revenue, expenses, payroll etc. for the current year to prior years. A regression model can estimate the amount of sales for the year using economical and industrial data. An auditor looking at these analytical procedures can identify unexpected differences or the absence of certain
…show more content…
Harlow might talk about the pressure that he is facing from management to keep his client, Sunbeam, happy and also gain possible incentives for non-audit services. Audit firms are likely to operate in a competitive environment for audit services and non-audit services, and clients are not likely going to offer more work than usual to the auditors, in order to not portray the company’s side of the
Mgt Section 391 Week 1 Paper
802 Words | 4 Pages1. Identify the specific circumstances under which auditors are allowed to provide confidential client information to third parties. According to ET Section 391.004, an auditor would be violating Rule 301.01 if the information is considered to be confidential client information, unless the auditor has the clients' specific consent, preferably in writing, for the disclosure or use of such information. “A member in public practice shall not disclose any confidential client information without the specific consent of the client” (AICPA § 301.01).
Ggb 515 Task 1
789 Words | 4 PagesA financial audit is an independent, objective evaluation of an organization 's financial reports and financial reporting processes. The primary purpose for financial audits is to give stakeholders reasonable assurance that financial statements are accurate and complete. Most internal audits are not adding value. One reason is that “ongoing compliance burdens and pressure to do more with less” is contributing to the decline in perceived internal audit value.
Pension Plans: GASB Vs. FASB
740 Words | 3 PagesPension Plans By Tay’veun Glenn Introduction Pensions are known as a retirement account that most employers maintain to give employees who have stayed with the company a payout upon retirement. Most employers give recipients of pension accounts a choice between a lump-sum payment or monthly annuity payments that are based upon the amount of time that the employee worked and their final salary prior to leaving the company. There are different types of pension plans and the use of each one is dependent on the employer. The Governmental Accounting Standards Board and Financial Accounting Standards Board both have to report pensions and have designated different ways to account for it.
Analyzing The Organizational Culture Of Ulta Beauty
930 Words | 4 PagesHave you ever wondered what the organizational culture was for Ulta Beauty? If their staff members are a priority to them? We see many different companies hold contrasting standards on how they treat their employees, but does anything make Ulta stand out? That is what I will be looking into today.
J. C. Penney's Organizational Culture
1033 Words | 5 Pages1. Describe J.C; Penney 's culture before and during Johnson 's time in the organization. What were the attributes that Johnson changed, and how did this impact the culture and success of J.C. Penney? J.C. Penney’s culture was based on transparency and loyalty before the entry of Ron Johnson.
Characteristics Of Corporate Culture At Herschend Family Entertainment
1479 Words | 6 PagesChouaib Elhajjaji Written assignment 3:“Corporate Culture at Herschend Family Entertainment” pages 318 – 320 (Questions 1-5) Due Date : Wednesday 25 November , 2015 GRADE_________________ 1-The characteristics of corporate culture elaborated in this chapter were the following. Corporate culture is shared, a provider of guidance, a provider of meaning in the organization, top heavy, a constellation of values, a dynamic constellation of values, organic, inclusive of life values. Choose three of these characteristics and show how the culture Manby promotes at Herschend Family Entertainment relates with each one.
Essay On Pro Forma
552 Words | 3 PagesIn 2002, the SEC adopted new rules and amendments to address public companies’ disclosure or release of certain financial information that is calculated and presented on the basis of methodologies other than in accordance with generally accepted accounting principles. The accrual accounting is more popular and be widely used in business world because it produces more accurate and faithful financial statements that constitute better representation of actual circumstances than its main competitors. The major weakness of accrual accounting is that there is some time issue such like the time of occurred and time of recorded would probably be different and it increases the risk of financial information and the risk of correctness. Also, the accrual accounting generally cost more to operate compared with cash accounting
Edward Lampert The Ineffective Leader In Retailer Case Analysis
1124 Words | 5 PagesEdward Lampert “The ineffective leader in retail segment” In this document the author will analyse the leadership qualities of Edward Lampert on the basis of his performance in Sears. Leadership can be defined as the ability to lead and organization or a group of people and help them to achieve their objectives. Effective leaders build strong communication bond with the employees and they also help the organization to increase its revenue and sales. Emotional intelligence is also an added quality of effective leaders (Batool, 2013).
The Six Pillars Of Character
1057 Words | 5 PagesQuestion 1 Analyze the behavior of each party from the perspective of the Six Pillars of Character. Assess the personal responsibility of Ed Giles and Susan Regas for the relationship that developed between them. Who do you think is mostly to blame? I think Ed Giles and Susan Regas are both to blame as they failed from the perspective of trustworthiness (honesty, integrity), responsibility and citizenship. As CPA, Partner, and senior accountant, they were fully aware that their relationship was inappropriate, forbidden and against company policy.
Lincoln Electric Case Study Summary
1216 Words | 5 PagesAn Analysis of Lincoln Electric Company’s Culture through Assessment of its Case Study After thorough investigation of the Lincoln Electric Company’s (LEC) Harvard Case Study, certain understanding and reflections may be made about the company’s culture from a multi-faceted perspectives such as the visual aspects of culture and its maintenance dynamics as observed in the textbook’s Chapter 8. ( Carpenter, Taylor, & Erdogan, 2009) Continuing Influence of Founders at Lincoln Electric It is easily evident from the case study that the diverse aspects of LEC’s operations --- from investors, employees, and customers to how the senior management conducts and approaches its business --- all reflect the philosophy, vision, and ideals of its founders:
What Is Baxter's Organizational Culture
1648 Words | 7 PagesOrganizational Culture Assessment Executive Summary Organizational culture denotes a set of values, artifacts, beliefs, assumptions, and norms that emerges from the interactions of members of an organization. It is a generic term used to signify a host of behaviors that connote general operating norms of conduct for a corporation and the framework against which organizational effectiveness is evaluated. The aim of this paper was to examine the cultural values of Baxter Healthcare Corporation and report on how the company’s organizational culture affects the way it operates and perform its objectives. Moreover, by using information regarding Baxter’s corporate culture obtained through a face-to-face interview with Baris U. Agar, Ph.D. – a senior
Organizational Behavior In The Wolf Of Wall Street
1586 Words | 7 Pages“Good units walk a thin line between indiscipline and ineffectiveness. Ignore the rules too often and you’ve got a mob, but enforce the rules too strictly and you’ve got a herd.” by Henry V. O’Neil represents the notion behind an effective organizational behavior. In an organizational settings, how well the employees are managed and understood depends on the leadership style exhibited by the leaders. Finding the right balance between being too strict or too easy with the employees not only create an ideal work environment but also increase productivity and reduce employee turnover.
The Importance Of Accounting In Personal Finance
748 Words | 3 PagesAccording to Averkamp (2016), “accounting is the recording of financial transactions plus storing, sorting, retrieving, summarizing, and presenting information in various reports and analyses”. Therefore knowing how to carry out these tasks
Marks And Spencer Competitive Analysis
1614 Words | 7 PagesIn terms of controlling, the management of Marks and Spencer has frequent reporting of expenditures with costs to provide a form of feedback. The reactions of managers to such type of data rely on the expectations or the formal budget or planned targets. The management believes in collecting and assigning cost data that is being shifted away from control. There is a recognition related to the repetitive exercise of planning and re-planning for creating a full time job for accountants. The assessment and evaluation of cost data in the aspects of launching new product by Marks and Spencer is about gaining insights and learning ways for achieving the goals of organisation in most effective manner.
Self Reflection In Financial Management
1051 Words | 5 Pages Income data (experiences, estimates of sales, fund rising, membership etc and planned activities). Data come from previous budgets, estimates, experience of others and public available statistics. I was also able to identify the main uses of accounting and these are as follow: Information All organizations need to keep records of their financial transactions so that they can access Information about their financial position, including: summary of income and expenditure, the outcome of all operations, assets and liabilities.
More about Audit Case Study Sunbeam's Culture
Mgt Section 391 Week 1 Paper
802 Words | 4 PagesGgb 515 Task 1
789 Words | 4 PagesPension Plans: GASB Vs. FASB
740 Words | 3 PagesAnalyzing The Organizational Culture Of Ulta Beauty
930 Words | 4 PagesJ. C. Penney's Organizational Culture
1033 Words | 5 PagesCharacteristics Of Corporate Culture At Herschend Family Entertainment
1479 Words | 6 PagesEssay On Pro Forma
552 Words | 3 PagesEdward Lampert The Ineffective Leader In Retailer Case Analysis
1124 Words | 5 PagesThe Six Pillars Of Character
1057 Words | 5 PagesLincoln Electric Case Study Summary
1216 Words | 5 PagesWhat Is Baxter's Organizational Culture
1648 Words | 7 PagesOrganizational Behavior In The Wolf Of Wall Street
1586 Words | 7 PagesThe Importance Of Accounting In Personal Finance
748 Words | 3 PagesMarks And Spencer Competitive Analysis
1614 Words | 7 PagesSelf Reflection In Financial Management
1051 Words | 5 Pages