Auditing Case Study Example | Topics and Well Written Essays - 1000 words

Auditing - Case Study Example altered year to year, these changes would create an inherent risk that Nathans Finance would not be able to meet those requirements and ultimately financial statement would not present the true and fair view. 1. There is a risk that there are no appropriate controls over revenue recording and the revenue of the next year is included in the current year’s figure which ultimately results in 42.5% increase in total sales. 3. There is a big increase in the revenue, but advertisement expense is only $53,445 in 2005 against $313,356 in 2006 (Nathans Finance NZ Limited, 2006). This may reveal control risk because this huge increase in advertisement expense may exposed that there are no related controls. Detection risk is a risk that the audit procedures performed by the auditor will not be able to detect and prevent the material misstatement in the financial statement. Some of the detection risks in Nathan Finance are mentioned below, 1. There is a big increase in the revenue, but advertisement expense is only $53,445 in 2005 against $313,356 in 2006 (Nathans Finance NZ Limited, 2006) auditor may not be able to detect the potentioal oversttement in the revenue. 2. Purchase of new vending machines for $11.32 million. It may either be fictitious or it may be leased asset. There is a greater risk that the auditor is unable to detect any potential fraud of error in this significant transaction. 3. Decrease in salaries and wages in comparison to last year may suggest that the management is concealing the expense to show higher profits, because in normal circumstances salaries expense increases. Audit procedures may fail to detect this potential error or fraud. 4. Increase in intercompany advances from $60.7 million to 79.6 million. This is related parties transaction and the management can create fictitious advance which would be difficult for the auditors to detect. 5. Sharp decrease in long-term finance receivables from $45.1 million to $34.07 million in 2006.

Human Resources College Essay Example | Topics and Well Written Essays - 1000 words

Human Resources College - Essay Example The strategy of UPS Supply Chain Solutions, as stated in the UPS plan of action are to leverage on technology to create new services and to strengthen its operations and networks, attract and develop the most talented people, continually study customers' behavior, anticipate their needs, and design its products and services to exceed their expectations, create a culture of innovation that leads to sustainable growth, and maintain an environment that enables it to treat every customer as if they are the only one (United Parcel Service n.d. a). In job/task analysis, the focus is on the needs of each group or department. Under the strategy of leveraging on technology to create new services, the information systems department needs to be trained in developing novel online tracking programs (United Parcel Service n.d. b), the customer service department has to be trained in how to use the tracking programs developed by the information systems department, and the finance department has to be trained in billing applications that generate accurate and timely billing to the customers. Under the strategy of attracting and developing the most talented people, supervisors of all groups have to be trained in developing and mentoring employees. ... In person needs analysis, the training and development needs of each employee is identified. For example, the information system developer for external applications may need to have knowledge of Java programming to develop the tracking programs, whereas the information system developer for internal applications may need to have database programming knowledge to develop applications that would enable the manipulation of customer data by the rest of the organisation. The accounts payables finance staff might need to be trained in using the accounts payables module of the billing program, while the accounts receivables finance staff might need to be trained in using the accounts receivables module of the billing program. Depending on the prior training of the supervisors, some might be lacking in performance appraisal skills, while others might be lacking in motivational skills. The same applies for customer service personnel. Some might find telephone skills more appropriate, while oth ers might find computer skills more relevant. 2. The primary stimulus for change remains those factors in the external environment, including the political, economic, socio-cultural, technological, environmental, and legal environment (Cook 2004, p. 34-35). Political influences include government or constitutional policies that may affect the organisation. For instance, the recent expansion of EU boundaries may influence certain organisations (Cook 2004, p. 35). Economic influences are concerned with the economy. Inflation has an effect, for example, on levels of spending. Socio-cultural influences include such factors as class, age and gender as well as issues such as culture and diversity. For example, the