Accounting

Inherent Risk, Tests of Controls, and Substantive Procedures Overview In this assignment, you will prepare a 2–3 page professional document that addresses the requirements specified in the case. Fully address each requirement and include at least two current references to scholarly and/or authoritative sources. Instructions Specifically you will be required to: Calculate the required ratios for all given years. Identify and explain high inherent risk assertions. Analyze and draw conclusions about the nature and extent of tests of controls. Analyze and draw conclusions about the nature, timing, and extent of substantive procedures. Use at least two current, quality academic or authoritative sources in this assignment. Note: Wikipedia and similar websites do not qualify as quality scholarly and/or authoritative sources. Use the Strayer University Library to conduct your research.

M. K. Gallant is president of Kranbrack Corporation, a company whose stock is traded on a national exchange. In a meeting with investment analysts at the beginning of the year, Gallant had predicted that the company’s earnings would grow by 20% this year. Unfortunately, sales have been less than expected for the year, and Gallant concluded within two weeks of the end of the fiscal year that it would be impossible to report an increase in earnings as large as predicted unless some drastic action was taken. Accordingly, Gallant has ordered that wherever possible, expenditures should be postponed to the new year—including canceling or postponing orders with suppliers, delaying planned maintenance and training, and cutting back on end-of-year advertising and travel. Additionally, Gallant ordered the company’s controller to carefully scrutinize all costs that are currently classified as period costs and reclassify as many as possible as product costs. The company is expected to have substantial inventories at the end of the year. Required: Why would reclassifying period costs as product costs increase this period’s reported earnings? Do you believe Gallant’s actions are ethical? Why or why not?

Pick a large company that does business in your community and view their financial results. For the most recent year, list the amounts reported for sales, cost of goods sold, and total net income. Does the amount reported for revenue represent cash received from customers during the year? If not, what does it represent? Is your company a profitable company? How can you tell?

Define and then compare and contrast  decentralized versus centralized organizations. Tell how they work and how they measure the performance of those charged with management. Share your experience with either or both types of organizations. Which type do you feel results in better leadership and management of the organization. I also need to reply 2 of my classmates:  —————————————————————————————————————————— 1Post classmate:  Definition of Decentralized Organizations  Decentralized organizations are companies that delegate responsibility and decision making to different managerial responsibilities rather than concentrating decision making power at the top tier. As such, the lower level management has greater autonomy and independence in executing their functions at the sub-unit level (Noreen, Brewer & Garrison, 2020). It is advantageous in that it leads to informed and timely decisions as well as a faster approach to the development of the management unit as a whole. Additionally, high employee morale and improved management focus are other benefits of the approach. Sub optimization is the main demerit as specific actions are beneficial to a subunit but detrimental to the company.  How Decentralized Organizations Work In decentralized firms, each department forms a subunit of the organization which encompasses the whole unit. At the company level, the heads of department form the part of the lower level management tier. Decision making and responsibility is delegated to the subunit with independence and autonomy (Noreen, Brewer & Garrison, 2020). There are streamlined efforts for goal congruence and managerial endeavors. Notably, every responsibility center creates its system of operation with a feedback circuit for information and strategic purposes. The system is evaluated in terms of efficiency or productivity compared with allocated resources and effectiveness in achieving set goals.  How they Measure Management Performance Performance appraisal of decentralized companies is difficult because responsibility is delegated across the organization. The process entails the implementation of measurement tools with regards to results. Tracking of the results is followed to the specific individuals responsible for the result (Indjejikian & MatÄjka, 2012). A good measure is a return on investment, which is gauged via the bookkeeping system or the accounting system. It is successful as expenses along with incomes are divided and assigned to particular responsibility centers and projects, respectively. Another tool used for measuring management performance is customer satisfaction. It uses market share data as well as customer retention data.  References Indjejikian, R., & MatÄjka, M. (2012). Accounting Decentralization and Performance Evaluation of Business Unit Managers. The Accounting Review, 87(1), 261-290. Retrieved August 24, 2020, from http://www.jstor.org/stable/41408068 Noreen, E.W., Brewer, P.C. & Garrison, R.H. (2020). Managerial Accounting for Managers. 5th Edition. New York, NY: McGraw Hill Education. 2nd post classmates:  Decentralized organizations are those, which have delegated operational and decision-making responsibilities to managers at different segments, divisions, or subunits. Pellinen, Teittinen & Järvenpää (2016) define decentralized organizations are those whose organizational structure fosters the delegated decision-making. In decentralized organizations, the performance of those charged with management is measured through an assessment of several key performance factors of their units. Key areas used to assess performance include the responsibility of their accounting systems, their division’s residual income, operating performance, balanced scorecard, and return on investment (ROI). These key strategies could help in ensuring better control over decentralized organizations.  Accounting responsibility is one critical way of assessing the performance of managers of the organization’s divisions. As per Lee & Yang (2011), this entails the assessment of cost, profit, and investment aspects and then linking them to the decision-making authority of the lower-level managers. According to Vejde & Sjökvist (2015), decentralized organizations grant managers with authority over costs, revenues, and investments when it comes to the operation of assets. Each manager can, therefore, be evaluated using their unit’s residual income and return on investment.  The performance of those charged with management can also be measured using operating performance. Pellinen, Teittinen & Järvenpää (2016) refer to operating performance as an evaluation of an entity’s performance using the minimum returns from the firm’s operating assets.  This is the net income, which investment centers earn, and it should be above the required minimum for the return of the operational assets (Lee & Yang 2011). This is essentially an adaptation from the residual income, and it determines the unit’s Economic Value Added index. Using a balanced scorecard essentially entails assessing the performance of the organization’s decentralized divisions using the aforementioned factors. From the works of Vejde & Sjökvist (2015), using the residual income to evaluate the performance of a unit means assessing the ability of managers to make profitable investments. This approach also entails the use of ROI in assessing the ability of managers to make sound investment decisions in line with the company’s strategy.  References: Lee, C. L., & Yang, H. J. (2011). Organizational structure, competition, and performance measurement systems and their joint effects on performance. Management accounting research, 22(2), 84-104. Pellinen, J., Teittinen, H., & Järvenpää, M. (2016). Performance measurement system in the situation of simultaneous vertical and horizontal integration. International Journal of operations & production management. Vejde, C., & Sjökvist, H. (2015). Consolidation of performance measurement in decentralized organizations.

A.  Explain the difference between tax avoidance and tax evasion referencing sources besides the given “Cases Citing Gregory” attachment. 1.  Discuss two examples of tax avoidance using two cases from the “Cases Citing Gregory” attachment. 2.  Discuss two examples of tax evasion using two different cases from the “Cases Citing Gregory” attachment. B.  Discuss how the cases Yung v. Grant Thornton LLP and Agilent Technologies Inc. v. Department of Revenue (found in the web links section) characterize tax avoidance as either tax liability minimization or tax evasion. C.  Explain why tax avoidance can be classified as tax liability minimization or tax evasion. D.  Acknowledge sources, using APA-formatted in-text citations and references, for content that is quoted, paraphrased, or summarized. E.  Demonstrate professional communication in the content and presentation of your submission. Note: If you have not yet read the Gregory v. Helvering case, please do so before continuing with this task. A link to the case is provided https://www.leagle.com/decision/inkyco20181217141 https://www.leagle.com/decision/1935758293us4651704 https://www.leagle.com/decision/incoco20171102081

Identify the factors that influence the amount of cash/bank balances an organisation will hold at anyone time. You will need to consider the following questions.  Why do organisations hold some of their assets in the form of cash? What are the costs of holding too much cash? What are the costs of having too little cash? To what extent are the reasons for holding cash similar to those for holding stock? I have included 2 examples that you can use and reword please do not just copy these.

This Assignment is Past Due and Must be Completed by Due Date and Time Posted on Order!! Unit II Case Study • Weight: 12% of course grade • Grading Rubric • Due: Tuesday, 12/15/2020 11:59 PM (CST)  Instructions Cookie Creations (Chapter 2) This assignment is a continuation of the Cookie Creations case study, which began in Chapter 1. From the information gathered in the previous chapter, read the continuation of the Cookie Creations case study in Chapter 2 of the textbook on p. 2-42. The case study allows you to apply what you have learned about accounting and the recording process. This assignment will enable you to practice what you have learned so far. After researching the different forms of business organization, Natalie decides to operate Cookie Creations as a proprietorship. She then starts the process of getting the business running. In November 2019, the following activities listed below take place. Nov. 8: Natalie cashes her U.S. Savings Bonds and receives $520, which she deposits in her personal bank account. Nov. 8: She opens a bank account under the name “Cookie Creations” and transfers $500 from her personal account to the new account. Nov. 11: Natalie pays $65 for advertising. Nov. 13: She buys baking supplies, such as flour, sugar, butter, and chocolate chips, for $125 cash. (Hint: Use the Supplies account.) Nov. 14: Natalie starts to gather some baking equipment to take with her when teaching the cookie classes. She has an excellent top-of-the-line food processor and mixer that originally cost her $750. Natalie decides to start using it only in her new business. She estimates that the equipment is currently worth $300. She invests the equipment in the business. Nov. 16: Natalie realizes that her initial cash investment is not enough. Her grandmother lends her $2,000 cash, for which Natalie signs a note payable in the name of the business. Natalie deposits the money in the business bank account. (Hint: The note does not have to be repaid for 24 months. As a result, the note payable should be reported in the accounts as the last liability and on the balance sheet as the last liability.) Nov. 17: She buys more baking equipment for $900 cash. Nov. 20: She teaches her first class and collects $125 cash. Nov. 25: Natalie books a second class for December 4 for $150. She receives $30 cash in advance as a down payment. Nov. 30: Natalie pays $1,320 for a 1-year insurance policy that will expire on December 1, 2020. Answer the questions below using an Excel spreadsheet. You should create a new tab on your spreadsheet for each calculation used for a total of three tabs on your spreadsheet. a. Prepare journal entries to record the November transactions. b. Post the journal entries to general ledger accounts. c. Prepare a trial balance at November 30. Please show your work, and do not take any shortcuts. Make sure to complete item “a” completely before moving to item “b,” and then move to item “c.” You cannot jump ahead unless you have completed each step sequentially in full. Submit the Excel document in Blackboard upon completion. Unit II Case Study Grading Rubric Criteria Achievement Level Level 1 Level 2 Level 3 Level 4 Level 5 Analysis (40 points) 0 – 23 Presents an account containing little analysis or relevant argument; interpretation is not well supported. Course concepts and analytical tools are not applied appropriately. 24 – 27 Presents an account that is descriptive but contains little analysis or relevant arguments; interpretation is not well supported. Course concepts and analytical tools are not applied appropriately. 28 – 31 Presents an analysis containing relevant arguments; interpretation is not thoroughly supported and not compelling. Course concepts and analytical tools are sometimes applied appropriately. 32 – 35 Presents a thorough analysis with effective arguments; interpretation is both reasonable and compelling. Course concepts and analytical tools are often applied appropriately. 36 – 40 Presents an insightful and thorough analysis with strong arguments and evidence; interpretation is both reasonable and compelling. Course concepts and analytical tools are expertly applied. Content (35 points) 0 – 20 Content is often irrelevant; information may be noticeably incorrect and/or off-topic. 21 – 24 Content is somewhat relevant and informative; may stray off topic a few times. 25 – 27 Content is mostly relevant and informative; may stray off topic one or two times. 28 – 31 Content is relevant and informative; may stray slightly off topic one time. 32 – 35 Content is highly relevant and informative; remains on topic. Accuracy (15 points) 0 – 8 Most of the assignment is clearly inaccurate and lacks attention to detail. 9 – 10 Several areas of the assignment may be slightly lacking in accuracy and/or attention to detail. 11 – 11 Most of the assignment is fairly accurate and shows fair attention to detail. 12 – 13 Most of the assignment is accurate and shows good attention to detail. 14 – 15 Accuracy is excellent and close attention to detail is clearly evident in all parts of the assignment. Writing Mechanics (10 points) 0 – 5 Writing lacks clarity and conciseness. Serious problems with sentence structure and grammar. Numerous major and/or minor errors in punctuation and spelling. 6 – 6 Writing lacks clarity and/or conciseness. Contains minor problems with sentence structure and some grammatical errors as well as several minor errors in punctuation and spelling. 7 – 7 Writing is mostly clear and concise. Sentence structure and grammar are strong and mostly correct. There may be 3 or 4 minor errors in punctuation and/or spelling. 8 – 8 Writing is clear and concise. Sentence structure and grammar are strong. There may be 1-2 minor punctuation errors and/or spelling errors. 9 – 10 Writing is clear and concise. Sentence structure and grammar are excellent. Correct use of punctuation. No spelling errors.

A.  Explain the difference between tax avoidance and tax evasion referencing sources besides the given “Cases Citing Gregory” attachment. 1.  Discuss two examples of tax avoidance using two cases from the “Cases Citing Gregory” attachment. 2.  Discuss two examples of tax evasion using two different cases from the “Cases Citing Gregory” attachment. B.  Discuss how the cases Yung v. Grant Thornton LLP and Agilent Technologies Inc. v. Department of Revenue (found in the web links section) characterize tax avoidance as either tax liability minimization or tax evasion. C.  Explain why tax avoidance can be classified as tax liability minimization or tax evasion. D.  Acknowledge sources, using APA-formatted in-text citations and references, for content that is quoted, paraphrased, or summarized. E.  Demonstrate professional communication in the content and presentation of your submission. Note: If you have not yet read the Gregory v. Helvering case, please do so before continuing with this task. A link to the case is provided https://www.leagle.com/decision/inkyco20181217141 https://www.leagle.com/decision/1935758293us4651704 https://www.leagle.com/decision/incoco20171102081

Chapter 8 examines the paying of the payroll, depositing of the payroll taxes, and the filing of the required forms. To comply with city, state and federal laws, employers must determine the taxes to be paid to each entity and report the taxes on the proper tax forms at the appropriate time. Depending on the tax report and the amount of withholdings, tax reporting and depositing may be completed monthly, quarterly or yearly. Read Chapter 8 of the textbook by Slater. Download the Employer’s Quarterly Federal Tax Return 941 Form

Click the link above to submit your assignment. Assignment: Ethics in Accounting Due Week 9 and worth 170 points Effective financial reporting depends on sound ethical behavior. Financial scandals in accounting and the businesses world have resulted in legislation to ensure adequate disclosures and honesty and integrity in financial reporting. A sound economy is contingent on truthful and reliable financial reporting. Instructions: Read the following scenario. Answer the questions that follow. This will be a 2-3 page submission in a question and answer format (also in paragraph form). An introduction and conclusion is not required. Refer back to your textbook for guidance on how to think through the scenario. You have been recently hired as an assistant controller for XYZ Industries, a large, publically held manufacturing company. Your immediate supervisor is the controller who also reports directly to the VP of Finance. The controller has assigned you the task of preparing the year-end adjusting entries.  In the receivables area, you have prepared an aging accounts receivable and have applied historical percentages to the balances of each of the age categories.  The analysis indicates that an appropriate estimated balance for the allowance for uncollectible accounts is $180,000.  The existing balance in the allowance account prior to any adjusting entry is a $20,000 credit balance. After showing your analysis to the controller, he tells you to change the aging category of a large account from over 120 days to current status and to prepare a new invoice to the customer with a revised date that agrees with the new category.  This will change the required allowance for uncollectible accounts from $180,000 to $135,000. Tactfully, you ask the controller for an explanation for the change and he tells you “We need the extra income, the bottom line is too low.” Required: In a 2-3 page paper, discuss the following: Consider what you have learned relative to ethics and financial reporting. What is the rationale for the calculations/process used to estimate the $180,000 uncollectible allowance? How do you think the misstatement of funds will impact the income statement and balance sheet? What is the ethical dilemma you face? What are the ethical considerations? Consider your options and responsibilities as assistant controller. Identify the key internal and external stakeholders. What are the negative impacts that can happen if you do not follow the instructions of your supervisor? What are the potential consequences if you do comply with your supervisor’s instructions? Who will be negatively impacted? Additional Requirements: Use at least one (1) quality academic resource (in addition to your textbook) for this assignment. Note: Wikipedia and similar websites do not qualify as academic resources. You have access to Strayer University’s Online Library at https://research.strayer.edu and the iCampus University Library Research page at https://icampus.strayer.edu/library/research. Your assignment must follow these formatting requirements: Your paper should be double spaced (Arial or Times Roman 12 pt font) and follow general Strayer Writing Standards (SWS) as they relate to references and citations. Please take a moment to review the SWS documentation for details (more information and an example is included in the Strayer Writing Standards menu link located in your Blackboard). Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.  Click here to view the grading rubric for this assignment.