1. the chief audit executive has noticed that some staff auditors have become more proficient in the use of personal computers while other auditors want nothing to do with them. the executive should:

A. disregard the differences

B. Provide training for those individuals interested in improving their skills

C. Discipline the individuals who display no self starting abilities

D. Establish a program for developing the capabilities of the entire internal audit department

Case 2.2

Business Case: Data Chaos Creates Risk

Data chaos often runs rampant in service organizations, such as health care and the government. For example, in many hospitals, each line of business, division, and department has implemented its own IT applications, often without a thorough analysis of its relationship with other departmental or divisional systems. This arrangement leads to the hospital having IT groups that specifically manage a particular type of application suite or data silo for a particular department or division.

Data Management

When applications are not well managed, they can generate terabytes of irrelevant data, causing hospitals to drown in such data. This data chaos could lead to medical errors. In the effort to manage excessive and massive amounts of data, there is increased risk of relevant information being lost (missing) or inaccurate—that is, faulty or dirty data. Another risk is data breaches.

• Faulty data By 2015, 96% of health-care organizations had adopted electronic health records, or EHRs (Office of the National Coordinator for HIT, 2016). It is well known that an unintended consequence of EHR is faulty data. According to a study published in the Journal of the American Medical Association, data in EHR systems may not be as accurate and complete as expected (Conn, 2016). Incorrect lab values, imaging results, or physician documentation lead to medical errors, harm patients, and damage the organization’s accreditation and reputation.
• Data breaches More than 25 million people have been affected by health-care system data breaches since the Office for Civil Rights, a division of the U.S. Department of Health and Human Services, began reporting breaches in 2009. Most breaches involved lost or stolen data on laptops, removable drives, or other portable media. Breaches are extremely expensive and destroy trust.

Accountability in health-care demands compliance with strong data governance efforts. Data governance programs verify that data input into EHR, clinical, financial, and operational systems are accurate and complete—and that only authorized edits can be made and logged.

Vanderbilt University Medical Center Adopts EHR and Data Governance

Vanderbilt University Medical Center (VUMC) in Nashville, TN, was an early adopter of EHR and implemented data governance in 2009. VUMC’s experience provides valuable lessons.

VUMC consists of three hospitals and the Vanderbilt Clinic, which have 918 beds, discharge 53,000 patients each year, and count 1.6 million clinic visits each year. On average, VUMC has an 83% occupancy rate and has achieved HIMSS Stage 6 hospital EHR adoption. HIMSS (Healthcare Information and Management Systems Society, himss.org) is a global, nonprofit organization dedicated to better health-care outcomes through IT. There are seven stages of EHR adoption, with Stage 7 being a fully paperless environment. That means all clinical data are part of an electronic medical record and, as a result, can be shared across and outside the enterprise. At Stage 7, the health-care organization is getting full advantage of the health information exchange (HIE). HIE provides interoperability so that information can flow back and forth among physicians, patients, and health networks (NextGen Healthcare, 2016).

VUMC began collecting data as part of its EHR efforts in 1997. By 2009, the center needed stronger, more disciplined data management. At that time, hospital leaders initiated a project to build a data governance infrastructure.

Data Governance Implementation

VUMC’s leadership team had several concerns.

1. IT investments and tools were evolving rapidly, but they were not governed by HIM (Healthcare Information and Management) policies.
2. As medical records became electronic so they might be transmitted and shared easily, they became more vulnerable to hacking.
3. As new uses of electronic information were emerging, the medical center struggled to keep up.

Health Record Executive Committee

Initially, VUMC’s leaders assigned data governance to their traditional medical records committee, but that approach failed. Next, they hired consultants to help develop a data governance structure and organized a health record executive committee to oversee the project. The committee reports to the medical board and an executive committee to ensure executive involvement and sponsorship. The committee is responsible for developing the strategy for standardizing health record practices, minimizing risk, and maintaining compliance. Members include the chief medical information officer (CMIO), CIO, legal counsel, medical staff, nursing informatics, HIM, administration, risk management, compliance, and accreditation. In addition, a legal medical records team was formed to support additions, corrections, and deletions to the EHR. This team defines procedures for removal of duplicate medical record numbers and policies for data management and compliance.

Costs of Data Failure

Data failures incur the following costs:

• Rework
• Loss of business
• Patient safety errors
• Malpractice lawsuits
• Delays in receiving payments because billing or medical codes data are not available.

Benefits Achieved from Data Governance

As in other industries, in health care, data are the most valuable asset. The handling of data is the real risk. EHRs are effective only if the data are accurate and useful to support patient care. Effective ongoing data governance has achieved that goal at VUMC.

Questions

1. What might happen when each line of business, division, and department develops its own IT apps?
2. What are the consequences of poorly managed apps?
3. What two risks are posed by data chaos? Explain why.
4. What are the functions of data governance in the health-care sector?
5. Why is it important to have executives involved in data governance projects?
6. List and explain the costs of data failure.
7. Why are data the most valuable asset in health care?

Sources: Compiled from NextGen Healthcare (2016), Office of the National Coordinator for HIT (2016), and Conn (2016).

Employee #1 Colin Forth, 40 years old

Annual Salary $80,000

Married with a 10-year-old son

Studied part-time at Humber College for 2 months, and paid tuition fees of $1,500.

Spouse, Emma has $65,000 income

Employee #2 Renata Hoover, 45 years old

Annual Salary $70,000

Studied full-time at University of Toronto for 4 months, paid tuition fees of $4,500

Renata’s 75-year-old father lives with her. Her father qualifies for disability tax credit and has no income.

Both employees have been employed since January 1, 2019.

Pay period—Semi-monthly (for example Jan. 2019 is paid on Jan.15, 2019 & Jan.31 2019).

complete the chart below

3.

Morris Industries manufactures and sells three products (AA, BB, and CC). The sales price and unit variable cost for the three products are as follows:

Their sales mix is reflected as a ratio of 5:3:2. Annual fixed costs shared by the three products are $275,000 per year.

A. What are total variable costs for Morris with their current product mix?

Total variable costs $

B. Calculate the number of units of each product that will need to be sold in order for Morris to break even.

C. What is their break-even point in sales dollars?

Break-even point in sales $

D. Using an income statement format, prove that this is the break-even point. If an amount is zero, enter "0".

Smokey and the Bandit produces outdoor activity clothing. The product line consists of pants, jackets, tops, and accessories. Data has been collected related to direct materials and direct labor for the four product lines. Smokey and the Bandit has also collected information on four possible cost drivers (units, batches, machine hours, labor hours). All this information is listed below. Construct a spreadsheet that will allocate overhead for each of these alternative drivers and will calculate the total per unit cost for each product line. Use the VLOOKUP function (show them) when constructing the spreadsheet so that you can determine the effect of different cost drivers on the overhead allocated and the resulting cost per unit.   

Total overhead cost to be allocated: $321,560

After constructing your spreadsheet answer the following questions?

1. What is the total cost per unit of each product line when machine hours are used as the cost driver for overhead allocation?
2. How much overhead is allocated to Jackets when direct labor hours are used as the cost driver for overhead allocation?
3. What is the total cost of Tops when direct labor hours are used as the cost driver for overhead allocation?
4. What is the total cost per unit of Accessories when the number of batches is used as the cost driver for overhead allocation?
5. What is the allocation rate when units are used as the cost driver?
6. If you are the manager of the Jackets product line which cost driver would you prefer? Why?
7. Currently the OH cost are being allocated based on DL hours. If the company decides to use units as the cost driver how would you react if you are the Accessories product line manager?

Pls do not handwritten for easy reading === ===

Question:-
CC Ltd, a company incorporated in Singapore with Dec 31 year ends, acquired a retail shop on 2 Jan 20x1 for $600,000 with the intention of renting it out. The property is leasehold with 20 years remaining on the lease. It has a zero residual value. On 1 Jul 20x1, CC Ltd rented out the retails shop to an unrelated company for a monthly rental of $8,000, payable at the end of each month. After 2 yrs, CC Ltd managed to terminate the lease with the existing tenant on 30 Jun 20x3. CC Ltd used the retail shop for its own operations from 1 Jul 20x3 onwards.
The market value of CC Ltd's retail shop was determined as follows:-
31 Dec 20x1: $800,000
31 Dec 20x2: $700,000
1 Jul 20x3 : $740,000

CC Ltd adopts the fair model under FRS 40 Investment Property and adopts the cost model under FRS 16 Property, Plant and equipment. CC Ltd depreciates all its assets on a straight-line where applicable.

Required:
Illustrate the accounting for the retail shop by preparing the journal entries(with journal narratives) to record the various events relating to CC Ltd's retail shop from 2 Jan 20x1 to 31 Dec 20x3. Please round your answer to the nearest dollar.

Walter's Inc. began operations on January 15, 2018, and had the following transactions in trading securities during 2018 and 2019:

March 1, 2018 Purchased 500 shares of Apex, Inc. common stock at $11 per share, plus a commission of $300

April 1, 2018 Purchased 1,000 shares of Basic Corp. preferred stock at $4 per share, plus a commission of $500.

June 1, 2018 Received dividends of $1 per share on the Apex stock and $2 per share on the Basic stock

December 31, 2018 Determined that the fair market values per share were $13 for the Apex sstock and $2 for the Basic stock.

February 15, 2019 Sold 500 shares of the Basic stock for $3 per share, less commissions of $200.

June 1, 2019 Received dividends of $1 per share on the Apex stock and $2 per share on the Basic stock

November 20, 2019 Purchased 800 share of Cargo, Inc. common stock for $7 per share, plus a commission of $400.

December 31, 2019 Determined that the fair market values per share were $14 for the Apex stock, $3 for the Basic stock, and $8 for the Cargo stock.

REQUIRED:

Prepare all of the journal entries required to account for Walter's transactions in the trading securities for the years 2018 and 2019.

assignment

Wanda wants all of her employees to be motivated to do a good job and continue the success of Salty Pawz, but there is only so much money she can shell out and still keep the business profitable. She begins to wonder if there aren’t ways she can motivate her employees without writing yet another check.

Recently she was asked to donate dog treats to the local Humane Society for a free rabies vaccination clinic they were holding at the high school. Wanda donated 100 bags of Chicken Cuties and even stopped by the event to see how it was going. When she arrived, she was surprised to see her friend Jamie there, happily greeting and signing in owners and their dogs. On the way home Wanda begins to think that perhaps there are ways that she can motivate her employees without paying them, but she doesn’t really know all that much about motivation theory. She turns to you once again for information and guidance.

Your Task

1. Select one of the motivation theories you studied in this module that you believe can be applied to the employees at Salty Pawz. Briefly explain the theory to Wanda and how it applies to her staff.
2. Using that theory, provide Wanda with 2–3 specific ways she can motivate her employees without money. Your suggestions should be specific and detailed enough that Wanda could implement your suggestions immediately.

Translation and Remeasurement of Depreciable Assets

Massmart, the second largest retailer in Africa, is a subsidiary of Wal-Mart Inc., a U.S. company. Massmart reports its accounts in its local currency, the rand (R). Wal-Mart’s fiscal year ends January 31. On February 1, 2018, Massmart reports facilities with original cost of R500 million and accumulated depreciation of R280 million in its noncurrent assets, as follows:

• Buildings acquired at a cost of R175 million when the exchange rate was $0.15/R, with accumulated depreciation of R100 million. The buildings are being depreciated on a straight-line basis over 25 years.

• Equipment acquired at a cost of R325 million when the exchange rate was $0.12/R, with accumulated depreciation of R180 million. The equipment is being depreciated on a straight-line basis over 10 years.

Additional exchange rates:

Massmart still holds these facilities at January 31, 2019.

Required

a. Assume that Massmart’s functional currency is the rand. Calculate Massmart’s translated facilities, at cost, and related accumulated depreciation, at January 31, 2019, and its translated depreciation expense for fiscal 2019.

b. Now assume that Massmart’s functional currency is the U.S. dollar. Calculate Massmart’s remeasured facilities, at cost, and related accumulated depreciation, at January 31, 2019, and its remeasured depreciation expense for fiscal 2019.

Enter answers using all zeros (do not abbreviate to millions or thousands).

1. Rose Company has a relevant range of production between 10,000 and 25,000 units. The following cost data represents average cost per unit for 15,000 units of production.

Using the cost data from Rose Company, answer the following questions:

A. If 10,000 units are produced, what is the variable cost per unit?

Variable cost per unit $

B. If 17,000 units are produced, what is the variable cost per unit?

Variable cost per unit $

C. If 21,000 units are produced, what are the total variable costs?

Total variable costs $

D. If 11,000 units are produced, what are the total variable costs?

Total variable costs $

E. If 20,000 units are produced, what are the total manufacturing overhead costs incurred?

Total manufacturing overhead costs $

F. If 24,000 units are produced, what are the total manufacturing overhead costs incurred?

Total manufacturing overhead costs $

G. If 20,000 units are produced, what are the per unit manufacturing overhead costs incurred? If required, round final answer to two decimal places.

Manufacturing overhead costs per unit $

H. If 25,000 units are produced, what are the per-unit manufacturing overhead costs incurred? If required, round final answer to two decimal places.

Manufacturing overhead costs per unit $

Pls do not handwritten for easy reading === ===
Question:-
1a) The Singapore "Conceptual Framework for Financial Reporting" on qualitative characteristics deals with the attributes that make financial information useful.
Explain the following 2 qualitative characteristics: (i) Relevance and (ii) Verifiability
1b)Under FRS 115 Revenue from contracts with customers an entity recognizes revenue over time when it transfers control of a good or service over time and, therefore, satisfies a performance obligation over time. For measuring progress towards complete satisfaction of a performance obligation over time, the entity can choose to use the output or input method. Explain and illustrate with suitable examples of what these methods are.

4. Process Costing – Equivalent units of production, Weighted Average Method (7pts): The Lost Moon of Poosh, Inc. is a sports drink manufacturer who uses process costing to account for its production costs each period. The Lost Moon of Poosh uses two departments in the production of its product – Blending and Bottling. The following is information obtained for the Blending department for the month of January:

            Work in process (WIP) inventory, beginning balance:

                        Units in beginning WIP: 19,000

                        DM costs in beginning WIP: $91,000

                        Conversion Costs in beginning WIP: $49,400

            Units started / costs incurred during January:

                        Units started: 65,700

                        DM costs incurred: $167,500

                        Conversion Costs incurred: $85,900

At the end of January, as of January 31^st, there were 17,300 units left in ending WIP inventory. These partially completed units were 75% complete with respect to DM and 40% complete with respect to Conversion Costs. Use the Weighted-Average method to answer the questions below.

1. 1pt: Calculate how many units were completed and transferred out to the Bottling Department during January.

2. 2pts: Calculate the Equivalent Units of Production (EUP) for January for both DM and Conversion Costs.

3. 2pts: Calculate the cost per EUP for January for both DM and Conversion Costs. Round your final answer to two decimal places.

4. 1pt: Assign costs to the units completed and transferred out of the Blending Department to the Bottling Department during January.

5. 1pt: Assign costs to the units remaining in the Blending Department’s ending WIP inventory as of January 31^st.

Winslow Inc. manufactures and sells three types of shoes. The income statements prepared under the absorption costing method for the three shoes are as follows: Winslow Inc. Product Income Statements—Absorption Costing For the Year Ended December 31, 20Y1 1 Cross Training Shoes Golf Shoes Running Shoes 2 Revenues $880,000.00 $685,000.00 $635,000.00 3 Cost of goods sold 420,000.00 339,200.00 416,000.00 4 Gross profit $460,000.00 $345,800.00 $219,000.00 5 Selling and administrative expenses 411,200.00 243,800.00 362,300.00 6 Income (Loss) from operations $48,800.00 $102,000.00 $(143,300.00) In addition, you have determined the following information with respect to allocated fixed costs: 1 Cross Training Shoes Golf Shoes Running Shoes 2 Fixed costs: 3 Cost of goods sold $127,500.00 $89,700.00 $120,000.00 4 Selling and administrative expenses 94,300.00 82,400.00 143,300.00 These fixed costs are used to support all three product lines and will not change with the elimination of any one product. In addition, you have determined that the effects of inventory may be ignored. The management of the company has deemed the profit performance of the running shoe line as unacceptable. As a result, it has decided to eliminate the running shoe line. Management does not expect to be able to increase sales in the other two lines. However, as a result of eliminating the running shoe line, management expects the profits of the company to increase by $143,300. Required: a. Do you agree with management’s decision and conclusions? Explain your answer. (Note: You may wish to complete part (b), the variable costing income statement, first.) b. Prepare a variable costing income statement for the three products. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. A colon (:) will automatically appear if it is required. If a net loss is incurred, enter that amount as a negative number using a minus sign. Enter all other amounts as positive numbers. c. Use the report in (b) to determine the profit impact of eliminating the running shoe line, assuming no other changes. Use the minus sign to indicate a decline in profit. Labels December 31, 20Y1 Fixed costs For the Year Ended December 31, 20Y1 Amount Descriptions Contribution margin Contribution margin ratio Fixed manufacturing costs Fixed selling and administrative expenses Income (Loss) from operations Manufacturing margin Revenues Sales mix Total fixed costs Variable cost of goods sold Variable selling and administrative expenses b. Prepare a variable costing income statement for the three products. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. A colon (:) will automatically appear if it is required. If a net loss is incurred, enter that amount as a negative number using a minus sign. Enter all other amounts as positive numbers. Score: 86/156 Winslow Inc. Variable Costing Income Statement—Three Product Lines For the Year Ended December 31, 20Y1 ✔ 1 Cross Training Shoes Golf Shoes Running Shoes 2 Revenues ✔ $880,000.00 ✔ $685,000.00 ✔ $635,000.00 ✔ 3 Variable cost of goods sold ✔ 292,500.00 ✔ 249,100.00 302,750.00 4 Manufacturing margin ✔ $587,500.00 ✔ $455,900.00 $322,250.00 5 Variable selling and administrative expenses ✔ 319,400.00 17,500.00 203,000.00 6 Contribution margin ✔ $268,100.00 $276,400.00 $119,250.00 7 Fixed costs: ✔ 8 Fixed manufacturing costs ✔ $126,500.00 $90,500.00 $119,250.00 9 Fixed selling and administrative expenses ✔ 94,600.00 83,000.00 142,000.00 10 Total fixed costs ✔ $22,100.00 $173,500.00 $261,250.00 11 Income (Loss) from operations ✔ $47,000.00 $102,900.00 $(142,000.00) Points: 20.95 / 38 Check My Work When recasting the variable costing income statement, remember that under variable costing, all fixed factory overhead costs are deducted in the period incurred. Revenues - Variable Cost of Goods Sold = Manufacturing Margin; Manufacturing Margin - Variable Selling and Administrative Expenses = Contribution Margin; Contribution Margin - (Fixed Manufacturing Costs + Fixed Selling and Administrative Expenses) = Income from Operations

Problem:

Charity Going Concern You are the newly hired controller for a charitable organization that is in trouble. The organization Helping Hands assists disabled individuals with all aspect of looking for and getting jobs. The organization has been struggling for the entire time of your employment. You are concerned that Helping Hands can survive much longer. The recession has taken a toll on fundraising. Payroll was due and you delayed paying the utilities for as long as you could. The big problem is Helping Hands largest donor requires that he be provided quarterly financial statements for him to continue making donations. In fact, you have not provided Gerald with statements for the last two quarters. Gerald comes to see you and informs you that his accountant will not allow him to provide any more financial assistance until you provide him with financial statements. If Gerald could show his accountant that the organization was doing well he could give them this quarters check. He needs the financial statements that have been promised. You apologize that he has not received the statements yet and promise that he will have them next week.

Later, Don the executive director of Helping Hands visits your office. He realizes there is a problem but is thankful there is enough cash to get through another week. Don is sure that once you provide Gerald the promised financial statements the donations will continue. Don realizes the financials do not look that good. He suggests leaving the debt to a major vendor off the financials. Don is a golfing buddy with the vendor’s president and the vendor Charles has offered to give the charity an official letter immediately waiving the charities debt to his company, not permanently, but just until you get past the cash crunch. Don assures you that it will keep the charity afloat and you wouldn’t be doing anything illegal. Charles is fully authorized to do this, as a goodwill gesture to a worthy cause. Don is hoping that maybe in the end Charles will actually cancel the debt. It’s a possibility.

UPDATED INFO: what is the ethical issue? what are the facts? who are the stakeholders? any alternatives to solve this issue? what would be the correct decision on this issue? using the 8 step process to answer and using support from the AICPA, Explain what your options are (there are two).

The textbook and the code of ethics should give you the information you need to complete this assignment. Your paper should be of the quality you would submit to the executive director or the board, explain your decision in a factual business manner. - Recognizing Ethical Matters and making good decisions means being familiar with the profession’s rules and regulations from the AICPA and the state board of accountancy.

To be effective, you need to know how to analyze a matter or situation. One ethics decision making model contains 8 steps:

Step 1: Recognize the Ethical Issue – the ethical issue in this situation

Step 2: Gather the Critical Facts – All the facts may not be initially evident, make sure you have them all before making any decisions.

Step 3: Identify the Stakeholders – Considering the alternatives who will positively benefit or negatively be harmed by your decision or actions.

Step 4: Consider Alternatives – What are the various approaches that can be taken to address this matter and resolve the ethical conflict.

Step 5: Consider the Effect on Stakeholders – Consider how each approach is likely to affect the stakeholder.

Step 6: Consider Your Comfort Level – How comfortable are you with each option, if discussed in public, how would it reflect on your ethics.

Step 7: Consider Rules, Regulations and Laws – Are the options consistent with the professional rules, regulations and laws?

Step 8: Make a Decision – Once you have considered all of the above can you make a decision? Explain your decision and what the major factors in why you consider this to be the best option. Make your argument convincing.

The partners in Sandhill Company decide to liquidate the firm when the balance sheet shows the following.

The partners share income and loss 5:3:2. During the process of liquidation, the following transactions were completed in the following sequence.

Prepare the entries to record the transactions.

Post to the cash and capital account