Express Comfy Co. operates an airline business since few years ago. The company’s year-end is 31 December of each year. You are the Engagement partner in charge and you have started planning the audit. You are setting a meeting with the client to identify any relevant audit risks. From your meeting you came across the following: In order to expand their flight network, Express Comfy Co will need to acquire more aeroplanes; they have placed orders for another six planes at an estimated total cost of QR70 millions and the company’s CEO has requested from the procurement director to handle this matter. Accordingly, the Procurement Director assigned Mr. Hamad ALKaaby to handle this transaction. Due to his prolonged experience and the trust the company is having in Mr Hamad, the Procurement Director has delegated all power and authority to Mr Hamad with no need to return back to him during the processing of this transaction. Mr. Hamad is now the one communicating with the vendors (suppliers), preparing the invoices, following up on things, and he is the one to check the fleet of planes when they arrive to ensure they meet the quality standards set by the company. 3 In addition, the company has spent an estimated QR50 millions on refurbishing (restoring) their existing planes. In order to fund the expansion, the Finance Department has applied for a loan of QR80 millions. It has yet to hear from the bank as to whether it will lend them the money. Notably, the CFO of the company has assigned four accountants from the finance department to handle the processing of this loan request. Four accountants have been assigned due to the fact that Ms. Reem Almansoury, the Chief Internal Auditor of the company, is currently on vacation and one of these four accountants has been asked to cover for her during her absence. The company receives bookings from travel agents as well as from individuals directly via their website. The travel agents are given a 90-day credit period to pay Express Comfy Co, however, due to difficult trading conditions a number of the receivables (travel agents) are struggling to pay. Furthermore, and due to the complexity of the online transactions, Engineer Ahmed El-Sabbahy has been assigned to handle these transactions, who in turn is responsible for all the online transactions with no other control procedures to protect the company from any sort of errors and/or fraud. Worth noting too, the website was launched few months ago and has consistently encountered difficulties with customer complaints that tickets have been booked and paid for online but Express Comfy Co has no documented record of them and hence has sold the seat to another customer. For this reason, the company is currently in communication with an external expert IT company to look into this issue.

2. Outline the members of the audit team who are expected to audit the records of East Comfy highlighting the role played by each of these members.

3. Outline the steps involved in the audit cycle as well as the audit strategy and relate these to East Comfy.

The following payments and receipts are related to land, land improvements, and buildings acquired for use in a wholesale apparel business. The receipts are identified by an asterisk.

Required:

1. Assign each payment and receipt to Land (unlimited life), Land Improvements (limited life), Building, or Other Accounts. Choose the correct account from the dropdown list for each letter and enter the appropriate amount. Enter receipts as negative amounts using the minus sign.

2. Determine the amount debited to Land, Land Improvements, and Building.

In this assessment you are required to design a wireless campus network for Faber University. This assessment is group assessment and you may work in groups of upto 4 students. To design the wireless campus network for the university you are required to conduct a requirement analysis, propose a design of the network considering the university requirements, carry out a security analysis and propose a WLAN monitoring tool for monitoring the network in the future. The network needs to be designed with an industry tool for example packet tracer, GNS3 etc. The assessment will help in developing an understanding of communication in wireless networks, the security issues and the limitations and challenges. Faber University has recently been experiencing a decreasing level of enrolment. Faber was built in the early 1900s, and until ten years ago, was known as one of the finest centres for higher education on the eastern seaboard. In the last ten years, however, enrolment seemed to plateau and then slowly decline. Faber's Chancellor Jennings has hired a polling agency and formed an action committee composed of faculty, students, and administration to determine the causes of the university's decline in enrolment. The polling agency surveys the graduating seniors and reports that the emerging needs of students are not being met. The new generation of student that the university wants to attract is the technically elite who are known as early technology acceptors. Faber's rich history and, consequently, its old network architecture and lack of technical infrastructure, security and privacy, are its downfall in this new, technological environment. The university has different areas and buildings, the Administration department, the Athletic department, the Engineering department, the Biological Sciences department, the Liberal Arts department, the Student Union, Residential halls, Sports complex, Lake and Park. The campus is spread over large land and each building and open space is 200 meters apart. All the buildings have multiple floors and the current enrolment of students is 5000, there are 50 staff members and guests also visit the campus. As IT students your group has been assigned to design the wireless network. The following process needs to be followed to design a secure wireless campus network that meets the university requirements.

• Requirement Analysis

• Wireless Network Design

• Security Analysis

• Maintenance and Troubleshooting

In doing the calculations, round to two decimal places.

1. Given the following currency exchange rates:

Time period 1: Sw F 1.55/US$

Time period 2: Sw F 1.35/US$

a.From time period 1 to time period 2, Sw F has depreciated in value relative to US$.

A)True B)False

b.From time period 1 to time period 2, US$ has appreciated in value relative to Sw F.

A)True B)False

c.In time period 1, if the price of Product A was Sw F 16,500, then its price in US$ should be:

A) US$ 10,725 B) US$ 25,575 C) Sw F US$ 10,725 D) Sw F US$ 25,575

d.In time period 2, if the price of Product A was Sw F 16,500, then its price in US$ should be:

A) US$12,210 B) US$22,275 C) Sw F US$12,210 D) Sw F US$22,275

e.In time period 1, if the price of Product B was US$23,500, then its price in SwF should be:

A) SwF 15,275 B) SwF 36,425 C) US$ SwF 15,275 D) US$ SwF 36,425

f.In time period 2, if the price of Product B was US$23,500, then its price in SwF should be:

A) Sw F 17,390 B) Sw F 31,725 C) US$ Sw F 17,390 D) S$ Sw F 31,725

In doing the calculations, round to two decimal places.

1. Given the following currency exchange rates:

Time period 1: Sw F 1.55/US$

Time period 2: Sw F 1.35/US$

a.From time period 1 to time period 2, Sw F has depreciated in value relative to US$.

A)True B)False

b.From time period 1 to time period 2, US$ has appreciated in value relative to Sw F.

A)True B)False

c.In time period 1, if the price of Product A was Sw F 16,500, then its price in US$ should be:

A) US$ 10,725

B) US$ 25,575

C) Sw F US$ 10,725

D) Sw F US$ 25,575

d.In time period 2, if the price of Product A was Sw F 16,500, then its price in US$ should be:

A) US$12,210

B) US$22,275

C) Sw F US$12,210

D) Sw F US$22,275

e.In time period 1, if the price of Product B was US$23,500, then its price in SwF should be:

A) SwF 15,275

B) SwF 36,425

C) US$ SwF 15,275

D) US$ SwF 36,425

f.In time period 2, if the price of Product B was US$23,500, then its price in SwF should be:

A) Sw F 17,390

B) Sw F 31,725

C) US$ Sw F 17,390

D) S$ Sw F 31,725

The ColorfulFurniture Company manufactures modern wood frame lounge sofas.

Currently the company makes only one size of three-seat sofas, which is 35 inches deep

by 90 inches wide. The final product consists of a routed, sanded, assembled, and stained

wood sofa. Direct materials include oak wood frames and pre-made cushions. Other

materials, such as wood legs, screws, hinges, sand paper, stain, and packaging, are treated

as indirect materials. ColorfulFurniture is preparing budgets for the second

quarter

ending June 30, 2020

. For each requirement below prepare budgets by month for April,

May, and June, and a total budget for the quarter.

1. The previous year’s sales (2019) for the corresponding period were:

April 540 sofas

May 680 sofas

June 920 sofas

July 1220 sofas

August 750 sofas

The company expects the above volume of lounge sofa sales to increase by 10% for

the period April 2020 – August 2020. The budgeted selling price for 2020 is $850.00

per sofa. The company expects 15% of its sales to be cash (COD) sales. The

remaining 85% of sales will be made on credit.

Prepare a Sales Budget for

ColorfulFurniture.

2. The company desires to have finished goods inventory on hand at the end of each

month equal to 10 percent of the following month's budgeted unit sales. On March

31, 2020, the company expects to have 65 sofas on hand. (Note: an estimate of sales

in July is required in order to complete the production budget for June).

Use the

@ROUNDUP function to round up to the whole number the number of sofas

desired in ending inventory. Prepare a Production budget

.

3. The sofas require two direct materials: oak wood frames and pre-made cushions:

Sixteen (16) feet of 4x1 oak wood are required for each sofa produced. Management

desires to have materials on hand at the end of each month equal to 18 percent of the

following month's sofa production needs. The beginning inventory of wood, April

2020, is expected to be 2,340 feet of wood. Oak wood is expected to cost $8.00 per

foot. (Note: budgeted production in July is required in order to complete the direct

materials budget for June.

Use the @ROUNDUP function to round up to the whole

number the number of feet of oak wood to purchase).

Pre-made cushions (30*30 inches) are purchased by a set of 10 cushions. Six (6)

cushions are required for each sofa. Management desires to have cushions on hand at

the end of each month equal to 13 percent of the following month's production needs.

Use the @ROUNDUP function to round up to the whole number the number of

cushions desired in ending inventory.

The beginning inventory, April 2020, is

expected to be 630 cushions. The set of 10 cushions is expected to cost $200. (Note:

budgeted production in July is required in order to complete the direct materials

budget for June.

Use the @ROUNDUP function to round up to nearest 10 the

number of cushions to purchase).

Prepare a Direct Materials budget

. Also, because two direct materials are required

for production - oak wood and cushions - you will need a separate schedule for each

direct material.

4. Each sofa requires 10 hours of direct labor. ColorfulFurniture uses a series of table

saws, table routers and sanders set up for specialized operations to achieve production

efficiencies. Direct labor costs the company $20 per hour.

Prepare a Direct Labor

budget

.

5. ColorfulFurniture budgets indirect materials (e.g., wood legs, screws, hinges, sand

paper, stain, and packaging) at $35.50 per sofa. ColorfulFurniture treats indirect labor

and utilities as mixed costs. The variable components are $20.60 per sofa for indirect

labor and $7.50 per sofa for utilities. The following fixed costs per month are

budgeted for indirect labor, $55,000, utilities, $3,000, and other, $20,000.

Prepare a

Manufacturing Overhead budget.

6. Variable selling and administrative expenses are $50.50 per sofa sold. Fixed selling

and administrative expenses are $85,000 per month.

These costs are not itemized, i.e.,

the budget has only two line items – variable operating expenses and fixed operating

expenses.

Prepare an Operating Expenses budget.

7. Prepare a

Budgeted Manufacturing Cost per unit budget

. Refer to exhibit 9-11 for

guidance. To calculate FMOH/unit calculate total FMOH for the year and divide this

by budgeted production for the year. The total production volume for the year is

budgeted at 10,000 sofas.

8.

Prepare a Budgeted Income Statement for the quarter for ColorfulFurniture

.

Assume interest expense of $0, and income tax expense of 21% of income before

taxes.

Directions:

Refer to Chapter 9 (

The Master Budget

) for guidance in setting up your budgets and

schedules. Adapt your schedules for the specific details outlined in the requirements

above. Prepare your budgets using Excel.

Use formulas and cell references so that any

change you make in one budget is carried through to all the budgets

. There should be

no hard keyed numbers in your formulas. For example, if you change the ‘sales volume

increase’ from 10% to 12% you should see effects of that change throughout the other

budgets. Likewise, if the budgeted selling price per lounge sofa changes from $850 to

$855 your spreadsheet model should be able to quickly and easily accommodate this

change, i.e., change the input cell for budgeted selling price and see the effect on income.

The spreadsheet will be graded on presentation, correctness, and quality of your

spreadsheet model (i.e., does it update correctly for changes in input variables). See

the grading rubric on Canvas.

You should approach this assignment as if you are the

Management Accountant at the ColorfulFurniture Company and you are going to present

these budgets in a meeting to the CEO, CFO, and other management personnel.

Some general principles to follow in constructing your Excel spreadsheet model:

1. Prepare an input area in which you enter all input variables – e.g., selling price,

budgeted volume increase, feet per sofa, ending inventory percentage, etc. You

may use the “Assumptions” tab of the sample spreadsheet or a designated area

within your budget spreadsheet, as long as the input area is clearly labeled and

neatly organized

2. Each schedule should refer to the input area for each constant data value (see

sample spreadsheet file). To the extent possible, keep all constant values together

in one area of the worksheet. An important principle of good spreadsheet design is

to keep just one copy of each constant value. That is, enter a constant value in

only one location in the worksheet. Then if you use the value in another cell, use a

cell reference that refers to the constant value's unique location.

Example (hypothetical): You enter the constant value of 6% for sales tax

in cell E5. When you write a formula in your worksheet that requires sales

tax, reference E5 in the formula instead of "hard coding" in the 6% value.

Do: =subtotal*E5

Don't: =subtotal*6%

3. Use cell references for constant data values and to calculate formulas within your

spreadsheet. There should be no hard-keyed numbers in your formulas. For

example, the formula to determine current period sales in units should reference

an input cell with last year’s sales volume and a cell with the volume percentage

increase.

4. Label and format appropriately – e.g., use $ to format dollar amounts, format cells

for decimal places, etc...

You are admitting a 19-year old female college student to the hospital for fevers. Using the patient information provided, choose a culture unfamiliar to you and describe what would be important to remember while you interview this patient. Discuss the health care support systems available in your community for someone of this culture. If no support systems are available in your community, identify a national resource.

Consider some examples of successful global business.

Complete either an interview with a manager doing business internationally or an analysis of global business news (your choice).

Use this information to answer the following question:

How might you incorporate your previous learning on the supply and demand curve to understand how exchange rates and trade embargoes influence global business?

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