Internal Auditors Report On Goodner Brothers

Internal Auditors Report On Goodner Brothers Internal Auditors Report on Goodner Brothers Inc 1.0 Internal Control is a system of checking balances and it is designed to provide a reasonable assurance that assets are protected. Then, accounting data must be accurate according to the information of accounting. Operations should be efficient and also law and policies are compiled with. For this company (Goodners Brothers), We noted that weaknesses in internal control of this company make employee of this company, Woody Robinson was in serious financial trouble. So, the employee took advantage of his companys weak internal controls by stealing a large of inventory, which employee then sold to other parties. We identify that the act of Woody Robinson was a form of major fraud. However, We have stated below that the main key internal control objectives for Goodners Huntington sales office. We also stated that the key internal control weaknesses and its implication that were evident in Huntington units operations and control policies or procedures to alleviate the key internal cont rol weaknesses. On the other hand, We also stated that other parties besides Woody Robinson who partially responsible for inventory losses in the company together with few fraud risk management strategy that could be implemented by this company. 2.0 From this case, we have found that Sales Representative(Woody Robinson) in Goodners Huntington sales office took as an advantage of Goodner Brothers Inc weak in internal controls by stealing a large amount of inventory. So, We believe that this are the following key internal control objectives should be maintain in Goodners Huntington sales office. Firstly, Sales offices staff need to ensure that the every transaction should have a proper authorization to prevent this kind of fraudulent use of resources. For example, Sales offices staff should get the approval from the management or manager for very transactions. By apply this first objective, the shortages of inventory can be minimized and makes all the transactions going very smoothly. Secondly, Physical safeguards and security should have been the key internal control objectives. For example, sales offices staff need to ensure that access to physical assets and information systems need to be controlled and properly restricted to authorized personnel. On the other hand, validity also should have been the key internal control objective. So, sales offices staff need to ensure that all recorded transactions fairly need to be represent the economics events that actually occurred and also should be executed in accordance with managements general authorization. Next, Error in handling also should have been the key internal control objective. So, sales offices staff need to ensure that whatever errors detected at any stage of processing receive prompt corrective action and also should reported to the appropriate level of management. Next, Completeness also should have been the key internal control objective. So, sales offices staff need to ensure that no valid transactions should have been omitted from the inventory records. This five objectives that we stated overall can minimum the bad debts. Furthermore, good control can minimized or maintain of the inventory records. 2.1 On the other hand, we have identify the key internal control weaknesses and that were evident in the Huntington units operations. Firstly, there is lack of sufficient workers in the company to perform the much needed various task because we identify that the company have 14 sales outlets with skeletal crews of 10 to 12 employees. Then, a sales manager supervised the other employees at each outlet and also working a sales district. The remaining staff typically included two sales representative. Furthermore, a receptionist who having double job as a secretary and also as a bookkeeper and seven employees who delivering the tires and working in the units inventory warehouse. So, this shows clearly that one of the major key internal control weaknesses is insufficient of workers is working in the company. Next, another key internal control weaknesses in the Huntington units operations is the failure to coordinate an up-to-date accounting system used to provide an actual or accurate ac count of inventory because we was identify that each goodner sales outlet maintaining a computerized accounting system. These systems also typically made according to a standardized format and not develop for specialized for the company. These systems is ready made. Beside this, we also found that the units sales manager and two representatives had unrestricted access to the accounting system. So, since the large volume of sales and purchase transactions always swamped the bookkeeper . Then, sales representatives also frequently entered transactions directly into system. Furthermore, another key internal control weaknesses in the Huntington units operations is the lack of security needed to safeguard the assets sold. Company failure to restricted the security. We have identify that the sales representative (Woody Robinson) taking an advantage and routinely stole the inventory and kept the proceeds. Woody Robinson also continuing stole in various ways. In some cases, Woody Robinson c harged merchandise that he was sold for his own benefit to the accounts of large volume customers. So, this techniques makes inventory balance in the Huntington facilitys accounting records. We also identify that Woody Robinson charged the customers for merchandise they had not purchase. Goodners customers frequently returned tires for various reasons. We found that Woody Robinson completed all the credit memos for sales transactions voided by his customers and at the same time, Woody Robinson not returning the tires to Goodners inventory. Then, Woody Robinson also routinely sell some of the tires to other customers for cash. So, because of company lack of security needs to safeguard the assets sold. This makes the quantity of stealing tires made Woody Robinson was increasing very high. Next, another key internal control weaknesses in the Huntington units operations is the company failure to make sure that all the accounting information was correct or not. We have identify that the sales representative themselves routinely accessed, reviewed and updated their customers account and also completing purchase orders. Sales orders, credit memos and other accounting document on the timely basis, Furthermore, the sales representative passed all the documents on to the bookkeeper and also use them to enter the transactions directly into the accounting system. We also have identify that sales representative had direct access to the inventory storage areas and during heavy sales periods, sales representative always loaded and delivered customers orders themselves. So, this makes easily errors occurred in the accounting information. So, we have stated those key internal control weaknesses and its implication with the evident in the Huntington units operations. 2.2 This are the following control policies or procedures to alleviate the key internal control weaknesses . Firstly, Proper authorization of transactions. Creating and using budgets is a form of authorization. This makes easier for Huntington units operations. The purchase of goods and services should be requested by one person and approved by another. Individuals that handle cash should be bonded. Secondly , another policies or procedures is Segregation of duties. This includes assigning different people the responsibilities of authorizing transactions, recording transactions, and maintaining custody of assets. The person collecting cash should not be the person who records the cash receipt. If there is enough staff, a rotation of duties can eliminate employee manipulation of records or assets. The approval of purchases should not be made by the person who has access to the checks. Furthermore, another policies or procedures is design and use of adequate documents and records to help ensure the proper recording of transactions and events. Sales representative should always pre- numbered checks, receipts and purchase orders should be used and sequence should be accounted. Then, cancelled checks, vouchers, and receipts should be maintained. Voucher packages (invoices, purchase orders and receiving reports) should be cancelled (stamped paid) after payment to prevent duplicate payments. The invoices should be matched to receiving reports and receiving reports should be matched to purchase orders to ensure that sales representative received, ordered and only pay for what we received. At the same time, journals should be kept for all transactions. Next, another policies or procedures is adequate safeguards regarding access to and use of assets a nd records. Then, access to blank checks, signature plates, and purchase orders should be restricted. Computers should have passwords to access and change information and working area also should be visible to supervisors. However, voided checks should be defaced by tearing the signature line off or writing void on the face of the check and also all voided checks should be maintained. If the company apply all those policies or procedures that we stated. The weaknesses of key internal control will be improved. 2.3 Furthermore, We also identify that besides Woody Robinson, there is few parties were partially responsible for inventory losses goodners suffered. Customers is one of the parties responsible for inventory losses because when customers complained to Woody Robinson for being charged for merchandise they had not purchased, Woody Robinson usually apologized and corrected their account balances but if some of the customers sometimes paid the illicit charges, so this shows that customers unknowingly helped Woody Robinson sustain his fraudulent scheme. Next, We identify that Felix Garcia, the Huntington sales manager is also one of the parties that responsible for inventory losses because Felix Garcia stated that he was not discussed the customers complaints with Woody Robinson or the sales representative. Normally, when Felix Garcia received a customer complaint, he just simply passed it to the appropriate sales representative and was allowed that individual to deal with the matters. F urthermore, We also found that Felix Garcia maintain a file of customer complaints only because he was told to do so by the previous sales manager whom was replaced three years earlier. So, We found that previous sales manager also partially responsible for inventory losses. Next, Al Hunt is owner of Curcio tires and also Woody Robinsons friend is also one of the parties responsible inventory losses because Al Hunt just continue purchase the tires even though another sales representative told that the company only sold closeout merchandise directly to wholesalers. Al Hunt also know that Woody Robinson was incredibly selling the tires at lower price. This shows that Al Hunt really responsible for inventory losses. We also identify that Al Hunt one of the major parties among the other parties who responsible for inventory losses. 2.4 However, there is a various forms of fraud risk management strategy that could be implemented by Goodners Brothers Inc. One of the fraud risk management strategy is communication and training. So, raising employees awareness of their obligations concerning fraud and misconduct control begins with communications and training. While many organisations take an approach, careful planning behind this effort can help send employees a clear message to take their control responsibilities seriously. Secondly, another fraud risk management strategy is audit and monitoring. Because since it is impossible to monitor every fraud and potential misconduct risk, management should develop a comprehensive auditing and monitoring plan that is based on the organizations fraud risk assessment process. Then, another fraud risk management strategy is employee and third-party due diligence. An important part of an effective fraud and misconduct prevention strategy is using appropriate due diligence in t he hiring, retention and promotion of employees, agents, vendors and other third parties. Such due diligence becomes especially important for those employees with authority over the financial reporting process. Furthermore, another fraud risk management is code of conduct. That is actually a well -written code of conduct is one of the most important mechanisms to communicate with employees about acceptable business standards. It sets the organizations tone on control culture, raises awareness of managements commitment to integrity and provides the resources to help employees achieve managements compliance goals. All those fraud risk management strategy that we stated that could implemented by Goodner Brothers Inc. 3.0 Finally, we come with conclusion that the management or the board of this company is mainly responsible for the design of internal control and conveying to staff their internal control responsibilities. Peoples is the one who make internal controls work. Everyone in the company plays an important role. As problems are noted, staffs should be communicated, so that adjustments or corrections can be made. There is few benefits of internal control mainly for employees is actually to help prevent errors and irregularities from occurring. If they do occur, Internal controls will help ensure they are detected in timely manner. By this report, we believed that the board of Goodner Brothers Inc is should be able to overcome the internal control weaknesses. It makes the fraudulent in the company will be reduced and particularly Huntington sales office can be maintained or sustained consistently ranked as Goodners second or third most profitable sales outlet.

Ethical Issue on Do Not Resuscitate/Do Not Intubate Essay

In cases of cardiac or respiratory arrest, doctors, nurses, and other healthcare professionals conduct resuscitation, which is a medical procedure meant to restore cardiac function in such cases (The Cleveland Clinic Department of Bioethics, 2005). DNR, or â€Å"do not resuscitate† is an order that prohibits resuscitation to individuals who gave the order (The Cleveland Clinic Department of Bioethics, 2005). DNR orders are often executed by patients, whether in a hospital or nursing home (NYS Department of Health). Wherever a patient may be, the DNR order prohibits medical practitioners from performing cardiopulmonary resuscitation or CPR to attempt to restore the heartbeat and breathing of a patient whose heart has stopped beating (NYS Department of Health). Similar to a DNR order is a DNI order, or a â€Å"do not intubate† order. This is a separate order because essentially, resuscitation is different from intubation (WebMD, Inc. , 2007). Intubation involves the insertion of a tube through the nose or mouth to into the trachea so that the patient can breathe (WebMD, Inc. 2007). Intubation could prevent respiratory arrest or heart attack (Caring Connections & National Alliance for Hispanic Health). A person’s need for either intubation or resuscitation may differ depending on the circumstances, and it is possible that a person gets difficulty breathing even though his heart functions well (WebMD, Inc. , 2007). Thus, a DNR order does not always include a DNI order, and vice versa. All adults can execute or ask for a DNR order (NYS Department of Health). In certain instances, family members, friends, or representatives may also execute the DNR in behalf of the patient (NYS Department of Health). The main consideration for having a DNR ready is the fear or possibility of the failure of CPR or intubation (NYS Department of Health). The success or failure of CPR or intubation depends on many factors, including the general state of health and age of the patient (NYS Department of Health). Less healthy and ageing patients may have other conditions and frailties that could hinder the success of CPR or intubation (NYS Department of Health). Cardiac arrest can sometimes signal the shutting down process of the body, and CPR or intubation could only serve to interrupt such natural process (Caring Connections & National Alliance for Hispanic Health). Therefore, a failed resuscitation or intubation could lead to worse cases, such as brain damage (NYS Department of Health), dependency on a ventilator, or broken bones from the compression of the chest (Caring Connections & National Alliance for Hispanic Health). Thus, patients, particularly the older ones, prefer to die in relative peace rather than undergo aggressive resuscitation or intubation procedures. DNR/DNI orders are widely accepted as ethical practice (NYS Department of Health). Thus, healthcare professionals are mandated to respect such orders and refrain from giving treatment even though they feel CPR or intubation could still save the patient’s life. Thus, healthcare professionals, nurses, and doctors are left with few options when they face the dilemma between honoring a DNR/DNI order or his medical instinct (NYS Department of Health). First, he must follow the DNR/DNI order. Second, if he cannot follow the order, he must transfer the patient’s care to another doctor who would do so. Lastly, he could try to settle the dispute the soonest possible time (NYS Department of Health). There are many ethical issues relating to the execution of DNR/DNI orders. Working in acute health care setting as a nurse, this issue is an ever-present one that needs resolution. Ethical issues on this aspect revolve around the question of the right or authority to decide whether to discontinue life or prolong it. The justifications for the favorable ethical standing of DNR/DNI orders lie in the medical possibilities that are present in the given circumstances. Given the above-discussed considerations relating to health and old age, there are medical cases where CPR or intubation becomes an unwise option. The possibility of a fate worse than death, such as permanent brain damage, may not be worth pursuing, and the case might just be nature’s way of ending a person’s life (NYS Department of Health). Another justification for DNR/DNI orders from the ethical standpoint is freedom of choice. Pursuant to Kantian philosophy that gives premium on human reason and free will, the ultimate choice and control over a person’s life lies in himself alone, except in certain cases where he is no longer equipped with the necessary faculties to make such decisions on his own. Nursing care is directly involved with the ethical issues on this respect because they are the ones who are often faced with the dilemma between honoring a patient’s DNR/DNI order or following the medically justified path. Given the existing laws and rules on the matter, nurses can do nothing but follow protocol, and respect such orders when present. Ultimately, the law and the rules do not place the decision in their hands, but on the patient’s.

Hardvard Case: TA Answers

1. This is a good deal for HPT’s shareholders and they did it for several reasons: First of all, TA’s operating business was spun off for federal income tax considerations. To maintain its status as an REIT for tax purpose, a large majority of HPT’s gross income had to be generated from real estate rents or mortgage interest. To meet these requirements, HPT was forced to divest itself of TA’s operating business. Second, the management of HPT believed that the rental income from TA’s sites would significantly diversify its revenue stream by providing exposure to a historically recession-resistant industry that did not follow the cyclical patterns of the hotel industry. Finally, the spin-off will unlock the hidden value of TA and the shareholder of HPT will receive shares of TA. As a result, this will create value for shareholders of HPT. 2. The HPT use the spin off for several reasons: Carve-out is partial spin-off, only unlocking partial hidden value. Most of the time, an equity carve-out ultimately results in the parent company fully spinning off the subsidiary. For HPT, carve-out can’t help them to avoid tax. Sell-off means selling assets, divisions, and subsidiaries to another corporation. For HPT, since they have just acquired TA, they have no reason to sell it unless there is a bigger profit than the sum of acquisition cost and the spin-off benefit. Issuing tracking stock –no legal separation or transfer of assets from HPT to TA First, issuing tracking stock will dilute the shareholders’ ownership. Instead, new spun off stock has no equity claim on the assets or cash flows of the old parent company (HTP). Second, for tax consideration, issuing tracking stock won’t help HPT to avoid tax. Third, overvalued market moods. if the investors are over-optimistic about the industry of TA, HPT can take advantage of it and have higher capital gain. But there is no evidence that investors have such mood about the TA industry. 3. Number of shares outstanding = 8628425(Exhibit 4), price per share=29 Equity value = shares outstanding * price= $250224325. There is no debt for new TA, cash equals $213205000 (Exhibit 7) Capital lease obligation = $105252000 (Exhibit 7). EV=Equity value+ debt (short+ long)-cash (and equivalents)+capital lease obligation= $142271325= $142. 27 (MM) The HPT gives $213 million to TA in order to cover up real estate properties and help TA to run its business without increasing leverage ratio. Also, it can help create better balance sheet, thus facilitating publicly trading and decreasing default risk by and large. 4. What is the fair value of one share of New-TA? 1) Multiple valuation method We use Pantry (PTRY) as comparable firm from three comparable firms. Because Pantry has a similar business model as New-TA, it leases most of its stores for operation instead of owning them (it owns 368 stores, but leases 1125 stores). Nevertheless, the other two firms own most of their stores, so they are excluded from our selection. Thus, EV/EBITDA=7. 1(data for 2007) Post-acquisition depreciation $18029000(Exhibit 9) P ost-acquisition EBIT $14936000(Exhibit 9) EBITDA = $32965000. (Exhibit 9) Based on our multiple valuations using 7. 1 times of EBITDA multiple, the fair value of New-TA is 234. 05(MM) Equity Value= EV- debt + cash – Capital lease obligation= $341. 99(MM) Price per share= $341. 99mm/8628425= $39. 64 2) DCF method (see Excel) 5. After the spin-off, New-TA has no debt outstanding so that it is easy to finance in the future operation. On top of that, the company’s leverage is low, which decreases the default risk of the company by and large. HPT retains its real estate and gives its operating business to the New TA, hoping that the New TA could focus on the its strong point and develop more aggressively in the market. Besides, there will generate some tax beneficial due to the spin-off transaction, which increases net income of the company. In addition, gross margins of New-TA are incredibly high, encouraging the company to grow at a faster speed and generate large amount of gross profits.

What Changes Can Be Made To Solve Inequality For Women

What Changes Can Be Made To Solve Inequality for Women in the 20th Century Marisol V. Rangel Lancaster High School Word count: 1231 It is a constant battle women still have to face living in the 20 century of the unfair treatment between men and women. Two factors that are most often understood to demonstrate the inequality are occupational segregation and wage disparity. In 1960 women protested their dissatisfaction regarding the huge gender disparities in pay and advancement at the workplace. At the time women faced several difficulties in the workforce, on average women were being paid 60 percent of the male rate, not including the sexual harassment and having to deal with discrimination†¦show more content†¦They constituted only 10 percent of the country s aerospace engineers, 7 percent of its Hollywood directors, and 16 percent of its congressional representatives.†(Spar, 2012). Although we can see an increase of attendance from women and more of a participation, men continue to take the lead in the workforce. Instead of women taking their high education to lead a major corporation or creati ng their own line of work women are alternately working at an average work path. Before individuals begin to work, both the female and male employees must be hired, sure enough men are more likely to be hired. A group of researchers from, Northwestern, Colombia and the University of Chicago, conducted an experiment to examine the discrimination that took place between the two genders, in a theoretical job opportunity that was based merely on the candidate s’ ability to do a simple subject such as math. 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