Material Misstatement of Revenue System Free Samples to Students

Question: Discuss about the Material Misstatement of Revenue. Answer: Introduction: SWOT analysis helps in analyzing the aspects which are strength of the company; factors which could be weak points of the company; prospects which can be helpful for the company to make further development or to realize growth in business; factors which can cause threat for the company can also be identified through this analysis(Fine, 2011). Through the analysis Woolworths can analyze the external and internal factors of business environment which could help in developing its business projects and the threats and the weakness can be identified and planning could be made to manage those weak aspects. SWOT analysis for Woolworths is summarized below- Strength Strong product Portfolio Strategic Acquisitions Strong connections with suppliers Strong foundation in Australia Higher return on investment facilitate leverage growth Brand strength Geographical situation related with shopping centers aids access to the market. Weakness v Lack of global presence v Low risk acceptance v Steady operational scale can create issue in managing change. v Highly unplanned work pool Opportunities Increase in population Increase in online opportunities New prospects of sourcing in South-East Asia Prospects of diversification in new market Prospect for acquisitive growth Threat Highly competitive Industry Increase in labor rates Low consumer confidence Fully discuss the potential impact of your analysis on the Woolworths audit Strength- Woolworths has strong foundation in Australia which is one of the strength for the company(Porter, 2011). Another strength of the company is that the relationship with the suppliers is well established. Strong relationship with the suppliers facilitate company to carry out its business activities and the supplies are made by suppliers within timeframe and at best price. Leverage growth is enjoy by company as the return on investment is also higher. The stores of the company are located at accessible locations. This factor is one of the strength for the company as the customers like to purchase from the stores which are easily accessible (Bird, 2015). Woolworths product portfolio is also strong which facilitates in generating profit and getting more business. Presence of Woolworths in private label market is well established and the consumers use to prefer shopping of private level brands in comparison to national brands and reason for this is, private label brands are more cheaper comparatively to national brands(Sarsby, 2016). For that reason, Woolworths has strong portfolio and well positioned in terms of private level brands and this tends to increase in profits and revenue. Weakness- The factors which are weakness of the company can affect the business process of company. Woolworths lacks in the global presence as more stores are not established worldwide. Another weak factor is that company`s risk accepting aspects are also low and without taking risk company cannot achieve higher profits(Bird, 2015).Steady operational scale of Woolworths is also a weak factor as it can create issue in managing change. Business activities are not well planned which is the most weak aspect of the company. As the roles and responsibilities of the employees are not well defined which give rise to the confusions. Opportunities-There is opportunity of growth in online business. Now a days, people wants to make their purchasing in less consuming time. Online business would help the company to increase its business in addition to realize higher profit (Mangum and Kerr, 2012). Population is increasing day by day which is also an opportunity for growth of business as the increase in population will tend to increase in sale(Sarsby, 2016). There is new prospect for Woolworths to establish its store in South-East Asia as its market is emerging. This opportunity can help the company to create its global presence. Threat- It is being analyzed from the SWOT analysis that Woolworths has threat from its competitors. There is enormous competition in the business of supermarket. One of the main competitor of Woolworths is Coles, which is Wesframer`s subsidiary. Little differentiation is there in between Coles and Woolworths which makes difficult for the company to endure a competitive advantage(Fine, 2011). More Savings Every Day is the marketing campaign of Woolworths and tough competition is faced by the company by the marketing campaign of Coles i.e. Down Down. Intense competition can affect the market share of Woolworths. Due to heavy taxes, confidence of consumers for buying has been decreased by 6.8% to 92.9. Therefore, consumers tends to save more money and this could affect the retail business of company. Increase in the rates of labor can also be threat for the company as the company`s cost will increase. At last, this can be concluded from the SWOT analysis of Woolworths that opportunities can be grasped by the company to overcome from the issues which are weak points and the threats can also be managed by developing some plan and holding the prospects for overall growth. In order to assess inherent risk involve in the financial statements or business operations of Woolworth limited, it is required to understand what inherent risk is. Inherent risk can be defined as the risk which is not under the control of business organization but are present in operational market or activities undertaken by the business organization. Inherent risk in auditing terms can be defined as the risk of material misstatement in the financial statements of the business organization. In other words, it can be defined as the material omission or error that is present in financial statements of the business organization. Explain why the account balance is at significant risk of material misstatement Substantive audit procedure can be defined as the process of identifying and collecting conclusive audit evidences that support correctness or prove material misstatement of financial statements. Internal control system is the internal process of business organization used in day to day or operational activities of the entity. These are adapted to control and detect fraud and error during operational activities. Following are internal control that to mitigate risk of identified assertion: SPECIFIC ACCOUNT BALANCE Inventory Account Interest or financial cost Sales Account (a) Explain why the account balance is at significant risk of material misstatement. Since Woolworth is engaged in many businesses and these businesses are of different nature. In some businesses, treatment and presentation of inventories are different from other. Therefore it is very much important for management to record and account inventory at correct value. Since many purchase rebates, discount allowed and other cost related to inventory are required to be considered (Mohammed, 2017). Inventory in retail business is huge in no and therefore this leads to inherent risk in Woolworths financial statements. Therefore in this case, there is inherent risk inventory account or in inventory management. On the basis of analysis of financial statements, it can be analyzed that Woolworth limited is engaged in many business operations and for the same they had taken huge funds internationally. Therefore inherent risk related to internal financial market like swapping risk, foreign currency fluctuating risk, difference in economic conditions of two different countries and many other consideration are kept in mind. Woolworth limited has obtained financial assistance from international market and this has posed to be inherent risk in auditing process (Wright, 2016). There is possibility of material misstatement in the interest cost or financial cost balance and it is not under the control of business organization. From the analysis of financial statements, it can be analyzed that sales revenues account shown in the income statement is at significant risk of material misstatement. Sales account of Woolworth limited represents sales revenues from different source or from different business operations. Woolworth limited is engaged in many business operations or in many businesses that posses different types and different levels of risk. Significant material risk in sales account or balance can be because of many reasons like diversified business operations, different types of products and services, different revenue recognized methods used in recording and presenting sales revenue and many other factors. (b) Explain the key assertion at risk of not being valid. Inventory Account: In this case, key assertions that are at risk in case of inventory balance is not being valid are as follows: Existence- According to this assertion, inventory balance shall exist and shall match with the inventory balance disclosed in the financial statements during the reporting period. Completeness- According to this assertion, assets and liabilities present or exist during the previous year shall exist during the reporting period and shall be recognized in the financial statements. Valuation- Most important assertion that can be present or at risk of not being valid in the financial statements is valuation of inventory. Since inventory of the Woolworth limited is complex in term of diversity and of huge volume, therefore there is possibility of not valuing each inventory reliably. Interest or financial cost Accuracy- Assertion that poses risk of being not valid is of accuracy in terms of calculation and recording or presentation of interest cost or finance cost of Woolworth limited. Since Woolworth has been involved in taking finance assistance internationally therefore there is high risk of not measuring finance cost accurately. Sales Account: Occurrence: According to this assertion, account balance is at risk of material misstatement in terms of transactions are occurred during the reporting period and are related to business organization only. In case of sales revenue account, occurrence assertion can be at risk of material misstatement as there is risk of revenue earned and recognized during the reporting period. Sales revenue shall be related to reporting period and shall be received during the reporting period of Woolworth limited. (c) Detail one (1) relevant substantive audit procedure to address the assertion at risk as identified in b) above. Inspection (Valuation): In this type of substantive audit procedure, inspection of level of inventories will be done. Physical verification shall be undertaken for assessing risk of material misstatement in inventories account (Glover, Prawitt Drake, 2015). Physical inventory shall be matched with the inventory level in system. Analytical procedures (Accuracy): In order to assess interest or finance cost of Woolworth limited, analytical procedure shall be used to analyses risk of material misstatement in financial statements. In this process, financial data of past few years will be taken into account and then analysis shall be done for analyzing the trend (Popescu Dascalu, 2012). Enquiry and external confirmation (Occurrence): Occurrence assertion of sales account shall be analyzed using substantive audit procedure of enquiry and external confirmation from the debtors and other parties. (d) Detail one (1) relevant practical internal control that would mitigate the risk in relation to the assertion at risk as identified in b) above. Valuation- Store manager along with other supervisor shall have the authority of inventory management. There shall be three step material intake, issue and balance matching process (Dan, 2011). Accuracy- Interest shall be calculated by undertaking risk involve in currency fluctuation and shall be authorized by financial manager. Interest calculation and overall interest shall be verified by internal auditor in concurrent audit (Lee et al., 2014). Occurrence- Sales shall be recorded when complete consideration has been received by Woolworth. Sales receipt shall be authorized by sales assistant, discounts shall be authorized by sales supervisor and all these shall be verified by sales manager. References Bird, G. (2015). Competitive Advantage: How To Gain Competitive Advantage, Stay One Step Ahead and Win! Kindle Edition. Bohm, A., Hm , A. B. (2013). The Swot Analysis. Grin Verlag . Dan Eugen Cosmin. (2011). Enhancing Assets' Protection Through An Adequate Monitoring Of Internal Control System By Internal Audit. Annals of the University of Oradea : Economic Science, 1(2), 491-497. Fine, L. (2011). The SWOT Analysis. Kindle Edition. Fox, D. (2016). Thinking about SWOT analysis. Kindle Edition. Glover, S., Prawitt, D., Drake, M. (2015). Between a Rock and a Hard Place: A Path Forward for Using Substantive Analytical Procedures in Auditing Large PL Accounts: Commentary and Analysis. Auditing, 34(3), 161-179. Lee, J., Kang, M., Oh, Y., Pyo, G. (2014). Does continuous auditing enhance the quality of financial reporting? Korean evidence. Asia-Pacific Journal of Accounting Economics, 1-24. Mangum, Catherine, and Stephen Thomson Kerr. (2012) Centrally Planned Innovation. 1st ed. Mohammed Abba. (2017). Moderating Effect of Internal Control System on the Relationship Between Government Revenue and Expenditure. Asian Economic and Financial Review, 7(4), 381-392. Parker, S. M. (2015). Swot Analysis: An Easy to Understand Guide. CreateSpace Independent Publishing Platform. Popescu, M., Dascalu, A. (2012). Improving the internal control system within universities. Bulletin of the Transilvania University of Brasov. Economic Sciences. Series V, 5(1), 101-106. Porter, D. (2011). How to perform your own SWOT analysis (Entrepreneurs Brief Guide Book 3). Kindle Edition. Sarsby, A. (2016). Swot Analysis: A Guide to Swot for Business Studies Students. Spectaris Ltd. Wright, W. (2016). Client business models, process business risks and the risk of material misstatement of revenue. Accounting, Organizations and Society, 48, 43.

Luke Skywalkers Journey free essay sample

The Jedi were the most feared warriors in the universe, but have been hunted down and destroyed by the New Empire. This is Joseph Campbell come in explaining his journey in an unknown world, signifies that destiny has summoned the hero and transferred his spiritual center of gravity from within the pale of his society to a zone unknown (Campbell, p. 58). All he can do Is create new problems for himself and await the gradual approach ot his disintegration (Campbell, pg. 59). Joseph can relate to Luke by getting himself into any trouble. Far in a distant galaxy princess Lelas ship subdued. Darth Vader appeals and his stormtroopers to search the entire ship for secret documents and he believes the ship carries. Leia is taken as a prisoner but R2 and his pall C-3PO gets away in an escape pod with a message from Princess Leia to Obi Wan Kenobi. We will write a custom essay sample on Luke Skywalkers Journey or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page They crash on a planet called Tatooine. The droids are bought by skywalkers uncle owen. Luke Skywalker finds the message R2 Is carrying fro Obl Wan and Luke sees Princess Lela and wonders If the message Is for the old Kanobl. R2 escapes during the night and Luke waits till the sun comes out and goes atter him. He tinds R2 and finds Obi Wan as well. Kanobi sees the message and he knows its time for Luke to fulfill his destiny-Obi wan asks Luke to come with him and to become a Jedi like his father but Luke refuses to go because his uncle owen needs him and that he has responsibilities. Luke returns to find his family farm burned out by imperial troopers, and he has no reason to stay in Tatoolne anymore so he comes back to Obi Wan Kanobl to fulfill his destiny and to become a Jedi. Obl Wan guides Luke away from the dark side and to make the right decisions for himself and for the people. Theres one important thing thats so powerful, the life saber can help Luke Skywalker get through his journey. Its his weapon and it had a special significance to him, The loyal servants, Han Solo, Chewbacca and the princess Lela, help Luke thru all his journey. Obi Wan and Luke suddenly go toa bad to find a pilot They need the pilot to help them start their journey so they can help find princess Lela. Out of the no where, people from the bar try to start problems with them because some random guy didnt Ilke him. Just for no significant reason, he didnt like Luke. They began fighting but Obi Wan Kanobi stops them trom hurting Luke. The main challenges Luke had to encounter was with the imperial troopers. They tried stopping Luke and his crew from their journey. For example Joseph Campbell when he had some rough patches down the road. Now, the big thing is about to happen. The hero, Luke Skywalker battles with his own father, Darth Vader. Darth Vader is the main person thats from The Empire. Before everything, Luke had to rescue, Princess Lela from the cell bay. She was captured by the imperial troopers. while Luke Is on the Journey to rescue Princess Lela, he begins to experience feelings for her not knowing Leia is his sister. Very weird and uncomfortable bond but he finally stops feeling that way for her. He noticed her eyes are on Han Solo. As Luke travels his journey takes him to the garbage mashers. While hes there, he battles with a water monster in trash mashers while he tries to leave He doesnt realize someone will eventually help him. Luke gets injured and thought to be dead Of2 and ne mista kenly believes that someone important to him dies, which is O Kenobi. Darth Vader and Obi Wan Kenobi fght for revenge over the republics hard times. As for Luke, he suffers an injury, he gets his hand cut off by Vader. After everything thats happened to Luke he still wants to battle against Darth Vader to get revenge for his one, main man. The man that helped him with everything, Obi Wan Kenobi. He has a special emotional bond where he finds himself having a special bond with the Princess Leia not knowing she is his sister. Luke found some special solution to the problem that hes attempting to resolve which is trying to save the princess Lela. So he does and it ends up escaping the trash mashers with R2D2s help. While Luke is trying to destroy The Battle Station, he gets chased by his own father, Darth Vader. At that one point in the story when all seemed hopeless, when it looked like the hero is going to die then suddenly he is rescued unexpectedly.

Sample Art Comparison Essay - Get the Best One

Sample Art Comparison Essay - Get the Best OneHave you been searching for a sample art comparison essay topic for your school work? Well, it is really simple to find. You can simply visit the Internet and search for different samples.The first thing that you need to do is to create a list of the different topics that are related to the art in which you are studying. You can then create a comparison between these subjects and come up with the best essay topic for your school work.What is important for you to note is that the material that is related to the art students should be of a certain level of difficulty. You will not want your essay to get accepted if it is too difficult for the examiner. So, as soon as you have created your list of different topics, you can make a rough draft and try to decide which one of these topics is more suited for your study in school.Once you have picked a subject, you need to choose the appropriate composition form that fits the topic of the essay. T his is going to be your topic and you should know how to make it well structured.One of the most effective means to organize these topics is to organize them into subtopics. Once you have made the decision about which topic to use for your essay, you can get a list of subjects that are similar to your topic and then look for them on the Internet to find the best samples.If you want to find the best sample for your subject, all you need to do is to create a subject heading and the text that you want to include in your essay. Then, you can search for the best sample in order to put your essay together properly.In the end, you can take pride in knowing that you have taken the best possible sample art comparison essay for your schoolwork. It will surely prove beneficial to you in the long run.

What is Sampling in Archaeology

What is Sampling in Archaeology Sampling is the practical, ethical method of dealing with large amounts of data to be investigated. In archaeology, it is not always prudent or possible to excavate all of a particular site  or survey all of a particular area. Excavating a site is expensive and labor-intensive and it is a rare archaeological budget that allows that. Secondly, under most circumstances, it is considered ethical to leave a portion of a site or deposit unexcavated, assuming that improved research techniques will be invented in the future. In those cases, the archaeologist must design an excavation or survey sampling strategy that will obtain enough information to allow reasonable interpretations of a site or area, while avoiding complete excavation. Scientific sampling needs to carefully consider how to obtain a thorough, objective sample that will represent the entire site or area. To do that, you need your sample to be both representative and random. Representative sampling requires that you first assemble a description of all the pieces of the puzzle that you expect to examine, and then select a subset of each of those pieces to study. For example, if you plan to survey a particular valley, you might first plot out all the kinds of physical locations that occur in the valley (floodplain, upland, terrace, etc.) and then plan to survey the same acreage in each location type, or the same percentage of area in each location type. Random sampling is also an important component: you need to understand all parts of a site or deposit, not just the ones where you might find the most intact or the most artifact-rich areas. Archaeologists often use a random number generator to select areas to study without bias. Sources See the Sampling in Archaeology Bibliography.

The Basics of Mammalian Temperature Regulation

The Basics of Mammalian Temperature Regulation Do you find it surprising that reindeer, which spend much of their time standing in snow, dont get cold feet? Or that dolphins, whose thin flippers are gliding constantly through cool water, still manage to pursue very active lifestyles? A special circulatory adaptation known as countercurrent heat exchange enables both of these animals to maintain the appropriate body temperature in their extremities, and this is only one of the many clever adaptations mammals have evolved over the last hundred million years to help them to deal with variable temperatures. Mammals Are Endothermic All mammals are endothermic- that is, they maintain and regulate their own body temperature, no matter the external conditions. (Cold-blooded vertebrates, like snakes and turtles, are ectothermic.) Living in widespread environments around the world, mammals face daily and seasonal fluctuations in temperatures and some- for example, those indigenous to harsh arctic or tropical habitats- have to deal with extreme cold or heat. To maintain their correct internal body temperature, mammals must have a way to produce and conserve body heat in colder temperatures, as well as dissipate excess body heat in warmer temperatures. The mechanisms mammals have for producing heat include cellular metabolism, circulatory adaptations,  and plain, old-fashioned shivering. Cellular metabolism is the chemical process that constantly occurs within cells, by which organic molecules are broken down and harvested for their internal energy; this process releases heat and warms the body. Circulatory adaptations, such as the countercurrent heat exchange mentioned above, transfer heat from the core of the animals body (its heart and lungs) to its periphery via specially designed networks of blood vessels. Shivering, which youve probably done some of yourself, is easiest to explain: this crude process generates heat by the rapid contraction and shaking of muscles.   If An Animal Gets Too Warm What if an animal is too warm, rather than too cold? In temperate and tropical climates, excess body heat can accumulate quickly and cause life-threatening problems. One of natures solutions is to place blood circulation very near the surface of the skin, which helps to release heat into the environment. Another is the moisture produced by sweat glands or respiratory surfaces, which evaporates in comparatively dryer air and cools the animal down. Unfortunately, evaporative cooling is less effective in dry climates, where water is rare and water loss can be a real problem. In such situations, mammals, like reptiles, often seek protection from the sun during the hotter daylight hours and resume their activity at night. The evolution of warm-blooded metabolisms in mammals wasnt a straightforward affair, as witness the fact that many dinosaurs were apparently warm-blooded, some contemporary mammals (including a species of goat) actually have something akin to cold-blooded metabolisms, and even one type of fish generates its own internal body heat.

Why Smart Companies Do Dumb Things Essay Example | Topics and Well Written Essays - 750 words

Why Smart Companies Do Dumb Things - Essay Example The desire to stay ahead of Pepsi and to be able to meet the taste of what Pepsi produces made the strategy of New Coke compelling to the executives of Coca Cola. In the early 80’s coke lost its market share to its rival Pepsi by two share points which represented to about $960million sales of Coke production. Coke real marketing problem was its advertisement and not its product. With a change in the soft drink consumer market, coke was not able to match up with the thought process with its commercials ads. Coca Cola had lost generation of young people with its bland advertising style. Coke advertising had a stodgy look and feel in comparison to Pepsi. Coke did not have any relevant statement for the youth in the 80’s. It was being positioned as a beverage preferred by senior citizens in comparison to Pepsi ads which targeted the youths. As a result the company did not pay any attention in improving the advertising rather focused on the product as marketing problem. Coke advertising strategy was no longer matching with the youth culture. Coke had researched every number and projection before the launch of its New Coke and the figures were accurate but it mis-leaded the company as it allowed the company to chase the wrong problem. The problem was in advertisement strategy the executives thought it to be the product. The executive of Coke got carried away with fragile and funky numbers. It ignored the issue that impacted the quality of the numbers such as research design, problem definition, how to ask questions and the analytical skills which helped to interpret the meaning of the numbers. Numbers have always been accepted blithely and so did New Coke before its launch. New Coke marketing research lacked validity as it did not communicate to its consumer that its flagship brand would be replaced with new sweeter product and its research was one dimensional. It was based only in sip testing which took place at central locations and was

US Airways Group - At the Back of the Pack Essay

US Airways Group - At the Back of the Pack - Essay Example Ever since the industry was deregulated in 1978 intense competition and price gauging has made profitability increasingly difficult for the airline industry in general. After the stock market crash of 2008 and the economic recession that followed coupled with rising fuel costs were the direct cause of several airlines having to file for bankruptcy protection (Plunkett Research, 2010). The airline companies that survived the onslaught were presented with a volatile and fluctuating operating environment of rising fuel and energy costs, coupled with a decreased demand for passenger travel in general and negative impact on revenues mainly as a direct result of the economic downturn. The rising costs have cut the margins in the industry so much that current the average net margin in the airline industry is two percent. The period of 2008 and 2009 remained a very challenging period for all the airlines with most of them struggling to remain profitable. For 2010 with the slow economic recovery businesses as well as private travel has increased significantly in volume, so occupancy rates in general for the airline industry have been full. When airlines are able to fill the seats of their airplanes to full capacity the company is optimizing the productivity of the operation. When the latter occurs and companies have idle capacity issues airlines have to take drastic measures to fill those seats which includes price deductions to spur the demand for air travel. After the previous years of consecutive losses the airline industry in general returned to profitability. U.S. Airways just like any other domestic airline is subject to a complicated array of laws and regulations that limit their operations as well dramatically increasing their operating costs. With the advent of the Aviation and Transportation security Act of 2001 which mandated the standardization and federalization of airport security and mandated additional security procedures which increased operational costs tremendously airlines had to absorb the costs and imposed a per passenger tax on ticket sales in order to fund the additional security measures. The Federal Aviation A dministration is the federal agency responsible for regulating the airline industry operations, procedures and their operational safety, including aircraft maintenance. The FAA will regularly issue new directives and changes in maintenance schedules and procedures which create mandated operational costs that are also a factor in increasing airline operational expenses. Other proposals to address airport congestion in certain airports in the U.S. involve increasing pricing to take into account congestion or placing a tax on certain particularly congested airports. This could potentially affect the airline industry in the near future by further increasing the costs of passengers to travel if these changes or suggestions are placed into law (Datamonitor, 2010). Further regulations and government legislation concerning pollution, climate change and aircraft emissions also post a significant operational threat to the airline industry as a whole. In the list of Fortune 1,000 : Most admire d companies 2006, U.S. Airways Group was consistently ranked lowest in all the eight key attributes that were taken into account. U.S. Airways Group achieved an overall score of 3.25 placing it as the least admired airline out of all the major competitors. For this survey U.S. Airways was ranked last in the industry in four of the eight