For this assessment, you should assume you are on the internal audit staff of a publicly traded company. Choose company Amazon. You will be required to obtain the last two years’ worth of financial statements and a recent audit report. The internal audit group at the company is tasked with preparing for an upcoming revenue audit and analyzing the business risk internally to mitigate audit findings. You will conduct an internal audit of the company using the information gathered and create a report. Then, you will prepare appropriate memos analyzing the audit report you have prepared, while offering feedback and recommendations.

A. Describe how you would conduct the audit process, incorporating the analytical procedures you would use to investigate selected business transactions.

1. What steps will you take to review the company’s business transactions?

2. What would your plan be to utilize these procedures?

B. Explain the appropriate field work needed to review high-risk business transactions for cash and revenue.

1. What would you need to do in the field to investigate these?

2. Could you convey this information through charts or other supporting documentation?

C. Create a test to assess appropriate assertions for designated high-risk business transactions.

For this assessment, you should assume you are on the internal audit staff of a publicly traded company. Chosen company is AMAZON. You will be required to obtain the last two years’ worth of financial statements and a recent audit report. The internal audit group at the company is tasked with preparing for an upcoming revenue audit and analyzing the business risk internally to mitigate audit findings. You will conduct an internal audit of the company using the information gathered and create a report. Then, you will prepare appropriate memos analyzing the audit report you have prepared, while offering feedback and recommendations.

A. Describe how you would conduct the audit process, incorporating the analytical procedures you would use to investigate selected business transactions.

1. What steps will you take to review the company’s business transactions?

2. What would your plan be to utilize these procedures?

B. Explain the appropriate field work needed to review high-risk business transactions for cash and revenue.

1. What would you need to do in the field to investigate these?

2. Could you convey this information through charts or other supporting documentation?

C. Create a test to assess appropriate assertions for designated high-risk business transactions.

The following information relates to R-U Ready Company, a publicly traded company:

1. R. U. Ready acquired Machine B on 1/1/13 by signing a 9% installment note to be paid in 5 equal installments of $65,000. Each payment is due on 12/31, with the first payment due 12/31/13. The useful life of Machine B is 8 years with no residual value. Assume double declining balance depreciation.

Requirement:

Present the accounts and dollar amounts that would appear on comparative balance sheets and income statements for the years ending 12/31/16 and 12/31/15.

List all accounts and dollar amounts. Round dollar amounts to the nearest dollar. You do not need to include cash.  

• For the Classification (Class) column of the Balance Sheet use:
• A for Asset
• L for Liability
• E for Equity

For the Classification (Class) column of the Income Statement use:

• R for Revenue
• E for Expense

Principles of Finance II WEEK 4: Discussion Prompt #1 Dividend policy is the set of guidelines a company uses to decide how much of its earnings it will pay out to shareholders. There are three main approaches to dividends: residual, stability or a hybrid of the two. For this discussion, research a publicly traded company that you are interested in or would like to know more about. State what type of dividend policy they currently use. In addition, explain whether you would invest in this company knowing how they pay out dividends.

Most publicly traded companies are examined by numerous analysts. Locate analysts’ ratings about a company of your choice by visiting a website such as Yahoo Finance (Links to an external site.). Provide a comparison over time and across companies in the same industry by answering the following questions:

• How many analysts rated the company?
• What are analysts predicting in terms of earnings and revenues?
• How do the estimates compare against historical results?
• How do the growth projections for the company compare with the average projections for the S&P 500?

JJP Corporation is a publicly traded firm. The market value of its equity is£35,000,000 and its debt £15,000,000. The yield to maturity of the debt is 5%, the equity–holders require a 20% return, and the company pays 30% corporate tax. They have recently decided to repurchase £5,000,000 worth of equity, and finance the repurchase through the issuance of new debt.
a) Will this change in capital structure affect the market value of the firm?
b) How will the return on equity be affected by this change? What is the new return on equity of the company?

Death Causes

1. Fill-in the tables below with the following information for each of the age groups:

• Number of deaths from all causes
• Number of deaths from accidents (unintentional injuries)
• Cause-specific death rate for accidents (unintentional injuries)

Calculate the age-specific all cause death rates for each group and the proportionate mortality ratio (PMR) for accidents (unintentional injuries).

TABLE A

TABLE B

1. Comment on the differences you observe across age groups among the different measures of mortality (keep the ratios in mind) in Table B.

2. Calculate and interpret the all-cause mortality rate for 2006.

3. What do the measures in Table B tell you about the risk of death from accidents (unintentional injuries) in each age group?

4. Explain why each measure of mortality in Table B is or is not a good indicator of risk.

5. Assuming the following information is accurate, calculate the case-fatality rate for accidents in 2006.

1.. Suppose $2000 is invested at 6% annual interest rate for 10 years and the interest is compounded monthly. How much will the investment be worth at the end of the 10 years?

2. Suppose John invests his tax refund of $1666 in an account that earns interest compounded continuously at the rate of 3.5%. How much will John have in 7.5 years? Show your work details.

3. What is the present value of an account that will be worth $10,000 in 5 years if the annual interest rate is 10% and the interest is compounded continuously? Show your work details.

4.A company shows the following profit figures for the years 2000, 2004, and 2008. In 2000 the profit was $250 million; in 2004, the profit was $400 million; and, in 2008, the profit was $550 million. If x is the number of years after 2000, write a linear function representing this profit. Using this linear model determine what the projected profit will be in the year 2020. Show work details.

5. The table shows the year and the number of people unemployed in a particular city for several years. Determine whether the trend appears to be approximately linear. If so, and assuming the trend continues, in what year will the number of unemployed reach 15 people?

Year                          1990 1992 1994 1996 1998 2000 2002 2004 2006 2008

Number Unemployed 750   670   650   605   550   510   460   420   380   320

6. Wilbur and Cody are selling pies for a school fundraiser. Customers can buy cherry pies and blackberry pies. Wilbur sold 8 cherry pies and 2 blackberry pies for a total of $110. Cody sold 7 cherry pies and 6 blackberry pies for a total of $177. What is the cost each of one cherry pie and one blackberry pie? Show work details.

Please answer the following questions based on the given graph

(1) Create a Time Series (Trend)Model  for  passengers on Domestic flights. (To zero decimal places) The predicted amount of passengers for 2010 on Domestic flights is ________.

(2) Create a Time Series (Trend)Model  for  passengers on Domestic flights. (To zero decimal places) On average, the number of passengers of domestic flights increase by ________each year, keeping all else equal.

(3)Create a GrowthModel  for  passengers on Domestic flights. (To zero decimal places) The predicted amount of passengers for 2010 on Domestic flights is ________.

(4)Create a Growth Model  for passengers on Domestic flights. (To two decimal places) On average, the number of passengers of domestic flights increase by ________percent each year, keeping all else equal.

(5) Based on R-squared which model is better for predicting passengers of domestic flights?
Time Series (Trend) Model
Growth Model

Compare the height, weight (in inches), and age for Eagles versus Patriots, using t tests. Provide the conclusions based on the t tests.

Eagles

Pats