Case Study - Malden Mills - Free Essay Example

Sample details Pages: 2 Words: 582 Downloads: 10 Date added: 2017/09/15 Category Advertising Essay Did you like this example? Malden Mills Malden Mills, a family business that produces textile and employed thousands of people in the same communities in which they manufactured their product. The company was founded in 1906 and over the years, has a good reputation of social responsibility in the community and a great concerned of its employers. The company’s chief executive officer- Aeron Feuerstein believed the best way to run a successful company is through its employers. Don’t waste time! Our writers will create an original "Case Study Malden Mills" essay for you Create order Making sure that the employers are treated as asset of the company, and making them feel as if they are part of the company not just a worker. Aeron Feuerstein feels deeply committed to its employers, and the communities than just the everyday operation of the company. Companies, regardless of size are in the business of making money, and stay competitive by increasing market share. When a chief Executive Officer deviates from the idea of making money, or searching for new way to stay competitive to employer’s satisfaction and the community then that company is bound to fail. Aeron Feuerstein showed too much concern of his employers and the community and got blindsided of actually solving the financial problem that the company was facing during the fire accident. Malden Mills is a manufacturer company that produces textile, employed thousands of people, and even considered the biggest textile company in New England. A company like Malden Mills Safety has to be paramount. Especially when dealing with all kind of different chemicals and machines that generate heat and cough fire easily. Malden Mills failed to improve its safety measures especially in the flock department where the fire broke out. The folk department has been a hazardous work environment for employers. The U. S occupational safety and health administration recommended the company to upgrade its safety measure and to improve the working condition of the department. Malden Mills made no effort to fix its safety problems which eventually lead to the fire accident. The chief executive officer- Aeron Feuerstein made a decision to not only compensating employers affected by the fire accident, but also continued to pay idle employers for three months. The company’s senior manager advices Aeron Feuerstein to restructure the company product line due to the current financial condition of the company. He refused to consider their advice and put all his effort and spend millions of dollar on satisfying his employers, and the community. The fire accident and some of the bad decision made by Aeron Feuerstein lead to the company down fall. If all the safety problems had been solve, the fire accident could have been prevented. The decision to continue paying idle employers after the fire accident that destroyed assets worth millions of dollar, and needs to be replaced make no sense. Aeron Feuerstein should have first weigh the company financial status after assessing the damage caused by the fire before making decisions. Aeron Feuerstein deep concerned for his employers and the community is a great idea to increase productivity from your employers and also build a strong relationship with the community. A crisis like the fire accident has a tremendous effect on the overall outlook of the company. The decision to compensate employers affected by the accident is perfectly normal, but decision to make employers and the community a priority over the managing affairs of the company future is a bad decision. Bad decision always leads to poor management and as a result companies fail or ready for a takeover by creditors and bigger companies.

The Grapes Of Wrath By Kathi Appelt - 1434 Words

The Grapes of Wrath â€Å"An entire nation, it seemed, was standing in one long breadline, desperate for even the barest essentials. It was a crisis of monumental proportions. It was known as the Great Depression.† (Appelt) As author Kathi Appelt describes, the Great Depression was an enormous economic recession that affected countless people all across the country. One of the most vivid depictions of the Great Depression is found in John Steinbeck’s The Grapes of Wrath. Some may argue that while vivid, Steinbeck’s portrayal may not be completely accurate. However, according to known facts, The Grapes of Wrath accurately depicts the everyday life and class struggle, as well as the influence of religion in the time of the Great Depression.†¦show more content†¦They called them â€Å"Okies† and â€Å"Arkies† as many of them came from Oklahoma and Arkansas. â€Å"Okies† faced much open discrimination and hostility, including from law enforcement. Being offered little work but plenty of prejudice, life was difficult for migrant workers during the Great Depression (Nishi, 1998, pp. 12-13). While Steinbeck’s main characters are migrant farmers, he still describes how the Great Depression affected folk of other occupations, such as the truck driver and Mae, the waitress. Not everyone moved west when the recession hit; those in urban areas tried to keep their jobs and make ends meet. Many could not pay rent and made little shacks of out cardboard to live in. Groups of these shacks were called â€Å"Hoovervilles,† similar to the â€Å"Okievilles† in California (Nishi, 1998, pp. 8-9). On the other side of the spectrum, there were some wealthy during all of this. Although still affected by the times, these few managed to keep a higher standard of living than was possible for most. Steinbeck shows that no one was immune to the plague of hardship brought on by the Great Depression. Second, Steinbeck accurately shows the class struggle that was waging during the period of the Great Depression. This tension between the classes is most evident once the Joads reach California. There was a vast gap between rich and poor with not much of a middle class. The rich owned acres and acres and posted guards to make sure that it

Big Data Complementary Audit Evidence †Free Samples to Students

Question: Discuss about the Big Data Complementary Audit Evidence. Answer: Introduction: If the appointed auditor of any organization provides additional services out of the scope of the audit engagement letter, then those services are known as non-audit services (NAS). It covers the services like actuary services, promotion of clients business and actuary services are few of them to be named. When the auditor involves himself in the promotion of the clients business it generates the advocacy threat and it endangers the auditors independency (Ahlawat Nouri, 2015). Therefore, the approach of the LTH to the auditors of the firm CJ for giving speech related to promotion of their business is not as per the standard of audit and CJ shall not accept the offer. The auditor shall not accept anything in monetary or non-monetary form from the client except their fees. If the auditors accept anything in addition to the fees then it will create self-interest threat as through accepting the additional benefits from client, the auditor become liable to the company. Therefore, the holiday package offered by LTH to audit partner Geoff from the audit firm CJ, shall not be accepted by him as it will create controversies related to his independence. Further, the auditor must give true and fair judgment as per the best of his knowledge during the audit procedure (Causholli, Chambers Payne, 2015). Therefore, accepting additional benefits for carrying out the audit smoothly will definitely raise questions regarding the integrity of the auditor and therefore, shall not be accepted. When the close family members like parent, siblings, dependent child of the auditor is in control of financial decision of the client, the auditor shall not comment on the financial statement of the auditor. The financial interest also includes giving recommendations on the investment portfolio of the client or providing any guarantee for the clients obligation. In the given case, the auditor, Michels father is the financial controller as well as the preparer of financial statements of the client LTH. Therefore, if the audit appointment is accepted by Michel, it will raise questions regarding his independency and at the same time the it will jeopardize the credibility of the audit firm too. Therefore, Michel shall not accept the offer to be engaged as auditor. However, if Michel engaged as the auditor of the firm CJ, then he must restrain himself from commenting on the financial statement of LTH. If the auditor is engaged with the assignment of auditing of a company where she was previously engaged as an employee, then it will give rise to the familiarity threat as there is likelihood that the auditor will be aware of the strength and limitations of the company. In the given case Annette was employed with LTH for calculation of tax and preparation of accounts of the company just a month back (Sarwoko Agoes, 2014). It is more likely that Annette will feel that the financial operation of the company is in order and will not go for in-depth investigation. Moreover, the auditor cannot review her own work as it will generate the self-review threat. Therefore, Annette shall not be appointed as the auditor of LTH. Safeguards against the independency threat of auditor Various methods that can be used to safeguard the independency of auditor are At the time of audit procedure, the auditor shall give his judgement that is aligned with the standards of auditing and the professional approach of the auditor While carrying out the audit, the auditor must ignore any influence from interested parties, users and political parties. There must be a rotation system in the engagement of key partners of the audit firm. It will reduce the chances of familiarity and self-interest threat (Khlif Samaha, 2014). The audit team shall have vast level of knowledge regarding the auditing standard and recent amendments of auditing to give best quality to the audit Business risks related to spare parts and equipment To present the audit report in true and fair manner, the auditor shall Analyse the expected level of material misstatement and its impact associated with the clients business Evaluate the overall risk of the clients business due to the accounting procedure, accounting disclosures and the environment of the business (Yoon et al., 2015). Evaluate the impact of identified risk on the financial statements of the client Business risks that are associated with the spare-parts and equipment purchase are Strategic risk: the strategic risk is linked with the inventory management and system of inventory management. the client may exchange the available inventory for purchase of another products or they can control the inventories as per the regulated requirement of inventory management. if the loss can be comfortably accepted by the client, then they can select the 1st option, otherwise they shall sect the 2nd Operational risk: This risk is related to the outcome that after preparing some strategies, the company are not able to follow it completely (Okaro Okafor, 2014). The reason may be the management are not willing to follow the strategies or there is some limitation in the approach of the policy itself. However, for the management of spare-parts inventory, assessment of risk assures the suitable measures for the inventory management. Audit risk type and their impact on the balance The strategic risk takes place while the organisation is not able to develop any strategy or the auditor is not able to control the risk. The accounts affected by this risk are opening as well as closing balance of inventory, net profit and gross profit. On the contrary, operation risk takes place when there is a chance that the risk will not be detected by the auditor. It greatly impacts the transactions of purchase account, sales account, inventories, opening as well as closing stock and the revenue account. Reference: Ahlawat, S. Nouri, H., (2015). An examination of accountants non-accountants'perceptions of auditor not reporting a material misstatement.Journal of Business Accounting,8(1), p.51. Causholli, M., Chambers, D.J. Payne, J.L., (2015). Does Selling Non-Audit Services Impair Auditor Independence? New Research Says,Yes.Current Issues in Auditing,9(2), pp.P1-P6. Khlif, H. Samaha, K., (2014). Internal control quality, Egyptian stards on auditing external audit delays: Evidence from the Egyptian Stock Exchange.International Journal of Auditing,18(2), pp.139-154. Okaro, S.C. Okafor, G.O., (2014). Joint Provision of Audit Non-Audit Services in Nigeria: An Empirical Study.IUP Journal of Accounting Research Audit Practices,13(1), p.30. Sarwoko, I. Agoes, S., (2014). An Empirical Analysis of Auditor's Industry Specialization, Auditor's Independence Audit Procedures on Audit Quality: Evidence from Indonesia.Procedia-Social Behavioral Sciences,164, pp.271-281 Yoon, Kyunghee, Lucas Hoogduin, Li Zhang. (2015). "Big data as complementary audit evidence."Accounting Horizons29.2: 431-438.

Self Assessment free essay sample

Accounting period Interim period 3. An account linked with another account that has an opposite normal balance and that is subtracted from the balance of the related account is a(n): (Points : 1) Accrued expense Contra account Accrued revenue Intangible asset Adjunct account 4. Adjusting entries: (Points : 1) Affect only income statement accounts Affect only balance sheet accounts Affect both income statement and balance sheet accounts Affect only cash flow statement accounts Affect only equity accounts 5. A post-closing trial balance reports: (Points : 1) All ledger accounts with balances, none of which can be temporary accounts All ledger accounts with balances, none of which can be permanent accounts All ledger accounts with balances, which include some temporary and some permanent accounts Only revenue and expense accounts Only asset accounts 6. A trial balance prepared before any adjustments have been recorded is: (Points : 1) An adjusted trial balance Used to prepare financial statements An unadjusted trial balance Correct with respect to proper balance sheet and income statement amounts Only prepared once a year 7. We will write a custom essay sample on Self Assessment or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Kader Co. paid a total of $35,000 in dividends during the current year. The entry needed to close the dividends account is: (Points : 1) Debit Income Summary and credit Cash for $35,000 Debit Dividends and credit Cash for $35,000 Debit Income Summary and credit Dividends for $35,000 Debit Retained Earnings and credit Dividends for $35,000 Debit Dividends and credit Retained earnings for $35,000 8. Profit margin is defined as: (Points : 1) Revenues divided by net sales Net sales divided by assets Net income divided by net sales Net income divided by assets Assets divided by net sales 9. The asset section of a classified balance sheet usually includes: (Points : 1) Current assets, investments, plant assets and intangible assets Current assets, long-term assets, revenues and intangible assets Current assets, investments, plant assets and equity Current liabilities, investments, plant assets and intangible assets Current assets, liabilities, plant assets and intangible assets 0. If accrued salaries were recorded on December 31 with a credit to Salaries Payable, the entry to record payment of these wages on the following January 5 would include: (Points : 1) A debit to Cash and a credit to Salaries Payable A debit to Cash and a credit to Prepaid Salaries A debit to Salaries Payable and a credit to Cash A debit to Salaries Payable and a credit to Salaries Expense No entry would be necessary on January 5 ANS: 7 correct out o f 10 1)3 2)1 3)2 4)3 5)1 6)3 7)2 8)3 9)1 10)3