During the course of the 2017 audit of Smithson Company, the auditor discovered the following situations that may or may not require an adjusting journal entry. Each audit finding is independent of any of the other findings. Indicate the adjusting journal entry, if required, to correct the audit finding. If no entry is required, indicate whether or not a related footnote should be included in the financial statements. Would any of the findings cause you to consider increasing your assessment of fraud risk?

Current Scenario:

Happy homes Inc. is one of the top 10 new construction companies in the Northwest region of Florida. Its headquarter is in  Niceville, Fl. Happy homes deal in new construction homes in affordable and sought after subdivisions.

In January 2015 Happy homes was founded by Dominick Linnus and Ella Linnus. In the second year, it was named the best home builders by the better business bureau. In 2019 the company was sold to Brian Butter. Since the new CEO took over he switched the use of the electrical, plumbing, and construction contractors. He has been contracting with lower quality workers at high-end prices since his father has affiliations with the newly selected contractors. This has been crippling our quality of homes and our ROI. In the past, we were constructing 38 homes a year with a profit of 100,000 per home. Currently, from June of 2019 to the present we have only built and sold 18 homes with a net profit of 75,000 per home. This new project plan is designed to build 38, 3,000 square ft homes in a subdivision within a year for under 475,000 with an estimated appraisal/sale value of 575,000.

(As of 1 Jun 2020)

CEO: Brian Butter

No. of Employees: 50

Last years numbers

Revenue: $ 1,350,000

Net Income: 7,200,000

Net Assets: $ 750,000

• Critically analyze your term project from the perspective of the project manager.
  • Introduce your term project to refresh the memory of the readers of this post.
  • Prepare the information to complete the project charter. You may refer to Figure 3-10 Sample Business Case on pages 92-94, and to Figure 3-15 Sample Project Charter on pages 100 to 101 of the textbook.
    • Define your project objectives.
    • Specify the measures by which this project will be determined a success.
    • Describe the assumptions and constraints for your project.
    • List the preliminary requirements for your project.
    • Identify any additional project management approaches to be considered for your project.
  • Do a stakeholder analysis and categorize stakeholders as follows:
    • Manage closely
    • Keep satisfied
    • Keep informed
    • Monitor
  • Based on the stakeholder classification and in the context of your proposed project, elaborate on your plans to manage stakeholders.
  • Finally, in a reflection of at least 30 words, describe the most interesting and challenging parts of preparing the project charter, as well as any recommendations to your classmates for preparing the charter.

MANAGEMENT TITLE ACRONYMS: Matching: ONE answer each

   A. BOD            B. CAO                C. CCO                     D. COO                          E. CTO

   A. CFO            B. CEO                                                      

75.   In charge of the machinery and technical assets of an organization.

76.   Essentially a group of consultants working for the company who among other things, are responsible for hiring and firing the

          CEO of the organization.

77.   In charge of gathering and then reporting certain statistics to the government or other monitoring organizations

          regarding how much and how well the organization is achieving specific required goals and mandates.

78.   In charge of product production/manufacturing operations of an organization.

79.   In charge of the Administrative functions of an organization.

80.   In charge of the Finance function of an organization.

81. The top, highest ranking, person in the organization.

PASSWORD/IDENTIFICATION TECHNIQUES (Matching) (one answer each!)

         A. Something you have      B. Something you know       C. Something you do       D. Something you are

82. Your mother’s maiden name

83. An eyeball scan

84. Your password (not “something you do”)

85. A key or an identification card

  86. A special way of doing handshakes with other people (not “something you know”)

87. Biometrics

What four financial statements can be found in a​ firm's 10-K​ filing? What checks are there on the accuracy of these​ statements?

Every public company is required to produce quarterly and annual financial statements. Those statements​ are:  ​(Select all the choices that​ apply.)

A.The statement of financial position.

B. The income statement.

C. The statement of cash flows.

D. The statement of​ stockholders' equity.

E. The statement of​ stockholders' liabilities.

What checks are there on the accuracy of these​ statements?  ​(Select all the choices that​ apply.)

A. Public companies must use a common set of rules and standard format when they prepare their reports.

B. Corporations are required to hire a neutral​ party, known as an​ auditor, to check the annual financial​ statements, ensure that the statements are prepared according to GAAP and provide evidence to support the reliability of the information.

C. In addition to the​ auditor's role in reviewing the financial​ statements, the​ Sarbanes-Oxley Act requires both the CEO and the CFO to personally attest to the accuracy of the financial statements presented to shareholders and to sign a statement to that effect.

D. When an auditor is not​ available, a​ corporation's CFO or the CEO can certify that financial statements are prepared according to GAAP.

Describe to the CEO how the 5Vs of big data could impact this analytic project ?

As CEO, which type of audit opinion would you prefer most and why?

What value do outside, Independent Directors bring to the CEO and C-Suite?

Explain why a CEO would not want to implement an information governance program at their HCO?

One share of Global Core Development Systems, Inc (an imaginary company with the abbreviation: Go-CDS) stock was priced at $14.31 on January 1, 2015. Your tasking in this problem is to determine how long does it take for a stockholder to double their money who has invested in Go-CDS? In other words, how long until the price per share has doubled.

Here are some facts about Go-CDS:

• Very stable company with a proven track record of manufacturing.
• The normal growth of Go-CDS's stock has averaged a monthly growth rate of 0.5000% in the share price. (This means that the price per share goes up by 0.5000% each month over the last month's price.)
• Beginning in March 2015, each time Go-CDS releases a quarterly report (on the 15th of the months of March, June, September and December each year), the stock share price increased immediately by 4.3000% due to the continuing, favorable outlook for Go-CDS's products in the marketplace. This trend continues throughout the time period.
• Due to a merger with another manufacturing company in the 19th month after 1/1/2015, the monthly growth rate increased to 1.4000% until the end of THAT calendar year (the last month of that year is the 24th month). Since then, the monthly growth rate increased to 2.3000% per month.
• Unfortunately, due to a bad set of business decisions in 2017, the Board fired the CEO which instantly cut the share price on January 5, 2017 to $3.58 (the 25th month). A new CEO was immediately hired on January 10, 2017.
• The company growth rate reset to 0.9500% per month after the new CEO was hired due to bad press.

Problem: Write a MATLAB program to solve the following questions:

Question 1:

In what month does the stock exceed 2 times the price of $14.31?

Question 2:

Prepare a plot of the stock's per-month price movement over the course starting from the first month of year 2017 until the price has exceeded 2 times the price of $14.31. (You plot should start from month 25, and should cover the month that is the answer to Question #1.) You will need to adjust the plot routine to ONLY show these months.

To limit the plot to these months, add the following command after your xlabel and ylabel commands:

How do I code this is MATLAB?