For the following commands you must be logged in as user “system”. You will need to do some research on the commands CREATE USER; GRANT CREATE SESSION; GRANT CREATE…..; GRANT ALTER …., GRANT SELECT….; REVOKE ……; and EXECUTE …..
5. Create two database users: The first is a concatenation of your first and last name (e.g. johndoe). The second is a concatenation of your instructors first and last name (e.g. sallysmith)
6. Assign the two users privileges to connect to the database.
7. Assign the user with your first and last name the privilege to select data from the employees table.
8. Assign the user with your instructors first and last name all privileges to the Departments table.
9. Assign the user with your first and last name the privilege to execute any procedure.
10. Take away the instructors privilege to execute any SQL commands on the Departments table
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CAN SOMEONE WITH DEEP KNOWLEDGE AND BRAINY ANSWER THE QUESTION PLEASE.
Your client is Magnificent Homeware Limited and your audit will be for the year ended 31 March 2018. Magnificent Homeware Ltd is a retailer and the main products sold are:
fridges
freezers
OLED televisions
coffee machines
blenders.
The retail shops are in Auckland (2) and Wellington (1) and the head office is in Auckland. There has been an extensive amount of capital expenditure over the past three years.
Each of the shops has a manager and they have incentive bonuses based on the net profit of the company. In discussions with each of these managers you have been alerted to the fact that there are problems with the over ordering of fridges and coffee machines. This has been as a result of the volatility of the market and competition in the market place and as a result the company had suffered cash-flow problems during the 2018 income year.
Your analysis of the industry suggests that the market for homeware products is extremely volatile and there is increasing competition and the need for heavy discounting for televisions and fridges.
The homeware industry is affected by changes in technology, especially for the televisions and therefore you have a concern for obsolete televisions as part of the inventory.
The managing director is Gwyneth Homeby and she is a gregarious person who was previously a car dealer. Accounting is definitely not her strong point. She relies completely on the accountant Helen Breeze. Gwyneth also advises you that she is concerned at the verbal reports of an isolated bullying situation by the manager to a sales staff member in one of one of the Auckland stores. You have found the following reference from the Institute of Directors which may assist you: https://www.iod.org.nz/About-us/IoD-news-and-articles/Post/19383.
In your first meeting with Gwyneth she unexpectedly offered you two free tickets to the T20 cricket match between the Black Caps and West Indies. Gwyneth explained to you that she had purchased these tickets however she has now found out that she will be going to a sales conference in Sydney at the time of this cricket match. At this stage you have not accepted the tickets and you are unsure on how to proceed.
Gwyneth also advises you that approximately 10% of the company sales is through supplying white ware and televisions to a government department in Wellington and this department is now reviewing the contract and calling for tenders for the 2018 – 2020 years.
During the 2018 income year the company borrowed an additional $1.4 million on a 15 year mortgage. The additional borrowing was used to build a new retail store which opened in Wellington in November 2017. The two Auckland shops are leased.
The bank overdraft has been agreed upon by the bank and has a maximum agreed overdraft of $400,000.
The 2018 financial statements are as follows:
Magnificent Homeware Ltd – summarised information
Income Statement
|
2018 |
2017 |
2016 |
|||||||||
|
$(000) |
$(000) |
$(000) |
|||||||||
|
Sales |
33,250 |
32,100 |
26,470 |
||||||||
|
Less Cost of Goods Sold |
26,500 |
27,950 |
22,450 |
||||||||
|
Gross profit |
7,250 |
4,150 |
4,020 |
||||||||
|
Less interest expense |
600 |
300 |
250 |
||||||||
|
Other expenses |
350 |
1,600 |
1,800 |
||||||||
|
Net profit before tax |
6,300 |
2,250 |
1,970 |
||||||||
|
Less taxation |
1,764 |
630 |
552 |
||||||||
|
Net profit after taxation |
4,536 |
1,620 |
1,418 |
||||||||
|
Balance Sheet |
||||||||
|
For Magnificent Homeware Ltd |
||||||||
|
As At 31 March 2018 |
||||||||
|
2018 |
2017 |
2016 |
||||||
|
$(000) |
$(000) |
$(000) |
||||||
|
Current assets |
||||||||
|
Bank |
- |
- |
1,804 |
|||||
|
Accounts receivable |
5,200 |
3,250 |
1,620 |
|||||
|
Allowance for bad debts |
(210) |
(350) |
(380) |
|||||
|
Inventory |
4,120 |
2,550 |
1,850 |
|||||
|
Total current assets |
9,110 |
5,450 |
4,894 |
|||||
|
Non-current assets |
||||||||
|
Plant & equipment |
5,480 |
4,900 |
4.300 |
|||||
|
Retail shop Wellington |
2,000 |
- |
- |
|||||
|
Total non-current assets |
7,480 |
4,900 |
4.300 |
|||||
|
Total assets |
16,590 |
10,350 |
9,194 |
|||||
|
Current liabilities |
||||||||
|
Bank overdraft |
380 |
350 |
- |
|||||
|
Mortgage |
200 |
100 |
100 |
|||||
|
Accounts payable |
2,200 |
2,026 |
2,890 |
|||||
|
Total current liabilities |
2,780 |
2,476 |
2,990 |
|||||
|
Non-current liabilities |
||||||||
|
Mortgage |
3,000 |
1,600 |
1,600 |
|||||
|
Total liabilities |
5,500 |
4,076 |
4,540 |
|||||
|
Net assets |
10,810 |
6,274 |
4,654 |
|||||
|
Shareholders’ equity |
||||||||
|
Shares |
200 |
200 |
200 |
|||||
|
Retained profits |
6,074 |
4,454 |
3,036 |
|||||
|
Net profit after tax for the year |
4,536 |
1,620 |
1,418 |
|||||
|
Shareholders’ equity |
10,810 |
6,274 |
4,65 |
|||||
As the auditor for Magnificent Homeware Ltd, use the information supplied and complete the following
b. Using the financial information above, provide analytical calculations (supported by formulae and figures) for the purpose of reviewing the financial performance and the financial position of Magnificent Homeware Ltd. Your focus should be to highlight matters of significant concern and trends that appear unusual.
c. From the analysis in (b) above, what are the audit risk factors for inventory and accounts receivable?
d. How would the financial statement analysis in (b) above assist to plan your audit approach for Magnificent Homeware Ltd?
e. From the information above (excluding the financial statements) list the potential problem areas and any major concerns (where there could be risk or material misstatement) that you will need to consider as part of the plan for the 2018 audit for this company. You must provide brief reasons why each of the areas you have listed require special consideration. You should be able to comment on at least 10 areas.
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