Part 1: Using the company profile below, identify TWO material misstatement risks- either at the entity-level (i.e. risk of material misstatement at the overall financial statement level) or account assertion level. For each account or entity-level risk identified, briefly describe why it qualifies as risky.

Part 2: Using the comparative financial information given in the next tab, identify THREE specific account-related misstatement risks. For each risk, briefly describe why it qualifies as a risk and the related accounts and assertions that potentially may be violated.

Company Profile: Your audit firm has been engaged to issue an opinion on the financial statements of CNX Corporation which sells and leases office equipment. Initially, CNX focused on selling and leasing copiers but CNX is finding that its customers, as is the general trend, are becoming increasingly paperless and adopting cloud computing as opposed to maintaining their own servers. This change in the business environment has hurt CNX’s sales of copiers, printers, and computer servers, and CNX is feeling the need to shift to selling cloud computing solutions on a subscription basis to better serve its customers. CNX's revenue has been declining over the past 3 years, but this was the first year that CNX experienced a net loss. In response, the CEO Darren Paul, issued a press release stating, “Our repositioning will necessarily require some additional expenses in the initial years, but we are confident that it will set the stage for CNX to exploit the explosive growth in cloud computing solutions." CNX benefits from its long established relationships with its exisiting customers, giving it an advantage over other companies in the same industry; however, cloud-based software companies are increasingly establishing their own sales forces to sell directly to customers. CNX has a reputation for being a good corporate citizen, and the CEO and CFO serve on the boards of major charities. CNX has had the same accounting team in place for the past ten years and has lower than average employee turnover throughout its ranks. This is your firm's eighth audit of CNX. There have been no disagreements over accounting issues in any of the previous audits.

, please write regarding whether you believe earnings management is or is not ethical. Please write from the perspective of a CEO of a publicly-traded corporation who has a fiduciary duty to his or her shareholders. A top-scoring answer will address balancing the duty of earning profits for shareholders against the responsibility to behave ethically. plesse answer as loong as you can

Write up a paper

1) While most companies have difficulty producing sufficient quality candidates for top management succession, how has GE been able to create a surplus? What philosophy, policies, and practices have made it a “CEO factory” as Fortune called it, and “easily the world’s best machine for churning out corporate talent” as The Economist described it?

In the United States during the early 2000's there were a plethora of accounting scandals. Many times, the CEO was the cause of the problem. Congress passed the Sarbanes-Oxley Act in 2002. A large portion of the act was devoted to making CEO's more responsible for control over accounting. How do the actions of CEOs and upper management affect accounting and financial reporting?

How has the Four Seasons Hotels operationalized a Transnational Strategy in order to gain competitive advantage in the global high-end luxury hotel industry?

If Four Season wants to diversify how you would suggest to its CEO to proceed?

What other business has synergy with their core existing business?

Please answered these three questions in a detailed manner.

Assignment:

We need to record a 20-25 minute video on ZOOM where we debrief our "CEO" on Last Weeks GlucoGauge Crisis (i.e. information covered in our slide deck we turned in)

We need to cover the following

The situation

Any new developments

Background information

Our analysis of the situation

Findings

Solution and Recommendations

Comment on the description of the Lorenz Curve? Is this okay? Which type of tax system are you in favor of and why? (progressive, proportional (flat), or regressive) Which is the best and why? Should we penalize a person because the market pays them a certain wage that is higher than the norm? (Ex: professional athlete, movie star, doctor, CEO, etc.) Why or why not?

name: ___________________________________________________________

1. Roberts has budgeted production for next year as follows:

Sales for each quarter of 2020 are listed above for a manufacturing business. The ending finished goods requirement is 10% of the following month’s sales. Four pounds of raw materials are required for each unit produced. The raw materials inventory at the end of each quarter should equal 30% of the next quarter's production needs. The cost of each pound of raw materials is $15. Beginning inventories for both finished goods and raw materials met the requirements.

______________________ What are budgeted purchases of raw materials in the second quarter? Prepare the production budgets for the second and third quarter, and show the start of the fourth quarter below.

                                                    Second Qtr                               Third Qtr                       Start the Fourth Qtr

$_____________________ What is the cost of the budgeted raw material purchases for the second quarter?

Prepare the Direct Materials budget below to show your work for the answers above.

                                                    Second Qtr                               Start the Third Qtr

2. Roberts Corporation makes one product and has provided the following information to help prepare the master budget.                                                                                                                    Show your work below:

Depreciation on the delivery trucks per month                                                          $1,000

a. What are the total estimated selling and administrative expense for February?    ________________

b. If all cash expenditures for selling and administrative expenses are paid in the month incurred, how much will be
  
    shown on the cash budget for selling and administrative expenses for the month?     _____________

3. ABC Company is preparing their master budget and is preparing a schedule of expected cash collections from sales for the first quarter of 2020. They expect sales in January to be $400,000, February to be $300,000, and March to be $500,000. 10% of the sales will be paid for in cash. The remainder will be charged on account. From past experience, the company knows their customers take 3 months to pay their bills in total, with 40% of a month’s sales on account collected in the month of sale, another 50% collected in the month following sale, and the remaining 10% are collected in the second month following sale. All credit sales are collected. The amount of credit sales in October 2019 totaled $600,000, November 2019 totaled $700,000, and December 2019 totaled $800,000.

1. Prepare a schedule of expected cash collections from sales for only January and February 2020.

                                       January                                                 February

2. What is the expected accounts receivable balance on March 31, 2020?   $_________________

Show your work:

Ethekwini Builders Ltd provides a unique scope of services in the home renovations industry. They deliver quality, reliability and impeccable customer service while staying on time and on budget, ensuring a hassle-free renovation experience for their customers. Being experienced specialists in renovation design and building, they employ efficient systems, top quality modern materials and finishes and talented artisans at the forefront of their trade, all at very competitive costs.

On 01 March 2019, the legal department of Ethekwini Builders Ltd had entered into a contract. The contract was undertaken to build a Gym in the La Mercy area. The legal team of Ethekwini Builders was instructed to draw up the contract between the necessary the parties by the Director of the company. The financial year of the company ends on the 28 February of each year. The contract will be completed by 28 February 2020. The Management Accountant of Ethekwini Builders Ltd supplied the following details with regard to the contract:

Salary and wages R212 500

Equipment hire R5 500

Machinery and plant sent to site R400 500

Other contract expenses R42 200

Payments received from Debtor AA Mathew was R706 500

Statistics South Africa’s figures released on Thursday showed that the steel production in South Africa fell strongly in December 2019, dropping by 7.5% from a year earlier, suggesting that the effect of work stoppages owing to the “wild cat” strikes at the steel industry during the third quarter continued to be felt in the fourth. The December fall follows a 3.8% drop year on year in November, revised down from the previously reported 4.5% fall.

The “wild cat” strikes caused a panic among buyers and this led to a sharp increase in steel prices. Ethekwini Builders decided to absorb the increases in steel prices due to the company’s slogan of keeping to the budget quoted. The site manager indicated:

Raw materials issued from warehouse R185 000

Raw materials delivered to site by suppliers R165 500

Raw materials returned: Warehouse R 5 500

Supplier R1 155

He further stipulated that raw materials on site (28 February 2020) amount to R 38 800 and plant on site (28 February 2020) amount to R388 500.

The Architect indicated that the Work certified (Debtors) amount to R785 000.

Additional information:  An amount of R1 800 relates to salaries and wages. This amount is due and payable at year-end but no entries have been put through the books.

Required:

1.1 Prepare a Contract account in which you clearly indicate the amount to be transferred to the profit and loss account at the 28 February 2020.

1.2 Prepare the debtors account

Round off to the nearest whole number