This assignment will be submitted to Turnitin®. PLEASEEEEE FOLLOW ALL OF THE INSTRUCTIONS AND USE AND REFERENCES ALL RESOURCES! Instructions New Phone Inc., a diversified manufacturer, has five divisi

[ad_1]

This assignment will be submitted to Turnitin®.

Don't use plagiarized sources. Get Your Custom Essay on
This assignment will be submitted to Turnitin®. PLEASEEEEE FOLLOW ALL OF THE INSTRUCTIONS AND USE AND REFERENCES ALL RESOURCES! Instructions New Phone Inc., a diversified manufacturer, has five divisi
Just from $13/Page
Order Essay

PLEASEEEEE FOLLOW ALL OF THE INSTRUCTIONS AND USE AND REFERENCES ALL RESOURCES!

Instructions

New Phone Inc., a diversified manufacturer, has five divisions that operated throughout the United States and Costa Rico. New Phone Inc. has historically allowed its divisions to operate autonomously. Corporate intervention occurred only when planned results were not obtained. The corporation’s management has high integrity, but the board of directors and audit committee are not very active. New Phone Inc. has a policy of hiring competent and aggressive people. The company has a code of conduct, but there is little monitoring of compliance employees. Management is somewhat conservative in terms of accounting principles and practices, but employee compensation packages depend highly on performance. New Phone Inc. does not have an internal audit department, and it relies on your firm to review the controls in each division.

Cheryl Smith is the general manager of the Intercept Division. The Intercept Division produces a variety of standardized parts for small smart phones. Smith has been the general manager for the last seven years, and each year he has been able to improve the profitability of the division. She is compensated based largely on the divisions’ profitability. Much of the improvement in profitability has come through aggressive cost cutting, including a substantial reduction in control activities over inventory. The periodic FIFO method of accounting for inventory is used.

During the last year a new competitor, Deflector Inc., entered Intercept’s markets and has offered substantial price reductions, intense marketing and friendly customer service in order to grab market share. Smith has responded to the competitor’s actions by matching the price cuts and increasing customer service in the hope of maintaining market share. Smith is very concerned because he cannot see any other areas where costs can be reduced so that the division’s growth and profitability can be maintained. If profitability is not maintained, her salary and bonus will be reduced.

Smith has decided that one way to make the division more profitable is to manipulate inventory because it represents a large amount of the division’s balance sheet. She also knows that controls over inventory are week. She views this inventory manipulation as a short-run solution to the profit decline due to the competitor’s price cutting. Smith is certain that once the competitor stops cutting prices or goes bankrupt, the misstatements in inventory can be corrected with little impact on the bottom line.

Please note is an individual project and reference any external sources used.

  1. Using bullet points evaluate the strengths of New Phone Inc.’s control environment.
  2. Using bullet points evaluate the weaknesses of New Phone Inc.’s control environment.
  3. What factors in New Phone Inc.’s control environment have led to and facilitated Smith’s manipulation of inventory.

Show more



[ad_2]

Source link

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Order your essay today and save 15% with the discount code BANANA