Happiness express inc. Audit Results Happiness Express Inc. Essay Example 2022-12-27
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Privations are deprivations or lack of necessities that a person needs in order to live a healthy and fulfilling life. These necessities can be physical, such as food, shelter, and clothing, or they can be psychological, such as love, security, and stability.
Physical privations can have serious consequences for an individual's health and well-being. For example, if a person lacks access to adequate nutrition, they may suffer from malnutrition or other health problems. Similarly, if a person lacks access to clean water, they may be at risk for waterborne illnesses.
Psychological privations can also have serious consequences for a person's mental health and overall well-being. For example, if a person lacks love and affection from their caregivers, they may struggle with low self-esteem and feelings of worthlessness. Similarly, if a person lacks a sense of security and stability in their environment, they may experience anxiety and stress.
Privations can have a particularly severe impact on children, who are still in the process of developing and growing. Children who experience privations may have difficulty reaching their full potential due to the negative effects on their physical and mental health.
Privations can occur for a variety of reasons, including poverty, war, natural disasters, and social inequality. In order to address privations and promote the well-being of individuals, it is important to identify the root causes of privations and implement strategies to address them. This may involve providing resources such as food, water, and shelter, as well as addressing underlying issues such as poverty and social inequality.
In conclusion, privation refers to the lack of necessities that a person needs in order to live a healthy and fulfilling life. It can have serious consequences for an individual's physical and mental health, and can occur for a variety of reasons. In order to address privations and promote well-being, it is important to identify the root causes and implement strategies to address them.
Happiness Express Inc
. Sponsored Links ENTERPRISE ACCESS Your entire office will be able to use your search subscription. Currently producing two products, snowmobiles and personal watercraft, both of which have become mature markets and thus giving little room to grow, two options have been determined to further the growth of Pleasure Craft INC. Therefore, there was an audit failure. SAS 99 requires specific procedures to ensure against management override of controls, which occurred at the consolidation process. When the auditor has not received replies to positive confirmation requests, he or she should apply alternative procedures to the nonresponses to obtain the evidence necessary to reduce audit risk to an acceptably low level.
The article really proves the point that in order for a toy manufacturing company to be successful they must be ahead of the game or anticipate what children will like as toys. This option allows Pleasure Craft INC. Majority of fictitious sales to West Coast Liquidators during the final month of the fiscal year 3. Management knows right from wrong, and should have used better judgment before making these decisions. Therefore, auditors should have included one or more sales to West Coast Liquidators in their year-end sales cutoff tests for fiscal 1995. Sadly for the Sutton siblings and their stockholders, sales of Power Rangers started falling significantly close to the end of the organization's 1995 monetary year as kids' enthusiasm for the cryptic crusaders died down. Which of the following was NOT a risk factor for financial statement fraud in the case? In addition, all pages on Bizapedia will be served to you completely ad free and you will be granted access to view every profile in its entirety, even if the company chooses to hide the private information on their profile from the general public.
Usually large increase in year-end sales to a single or a few customers is an indicator of the risk of potential material misstatements in financial statements. BIZAPEDIA PRO SEARCH Perform unlimited searches via our advanced search form with Bizapedia Pro Search. West Coast Liquidators eventually paid the entire amount showing as accounts receivable at year end 4. An example being the fact that many sales were made right Northern Frontier Parks 1. Second, the internal auditors were denied access to some of the corporate ledgers.
Company was heavily dependent on one or a few lines of merchandise 4. What I learned: I feel it is clear what this case wants the public to take away from it, and that is that it is very important for an audit to be performed thoroughly and accurately. I would say most of these errors in judgment involve negligence. These tests usually involve a review of a selected sample of sales transactions occurring in the last few days of a fiscal year and the first few days of the following year. Many questions seem to be unanswered. There are three main areas in which the auditing standards were not in compliance, a write-off of accounts receivable, confirmation of accounts receivable and sales returns and allowances. Sullivan was not completely at fault as it was fraud so people at Golden Bear were purposefully committing a white collar crime, but he should have exposed it by forcing them to disclose any changes in valuation techniques, as well as make them be more accurate with their revenue valuation.
Audit Results Happiness Express Inc. Essay Example
The Mighty Morphin Power Rangers initial sales were weak. In financial year of 1995 sales of Power Rangers amounted for 75% of the total revenues. An auditor ordinarily does not have sufficient basis for recognizing possible violations of such laws and regulations. I also feel a lot of the blame was put onto Coopers and Lybrand, when in fact; this negative outcome arose from Happiness Express Inc. The plan of action created by the Sutton siblings included acquiring the authorizing rights to advertise toys and other popular characters showing up in films, TV and books and different productions made for youngsters.
If not, you can expect some unfavorable outcomes. I do not think Jill made the appropriate decision because the inventory was the key area that was susceptible. Auditors should understand and test controls over the consolidation process just as they do over purchasing, sales, payroll, etc. In 1989, joseph and Isaac Sutton founded Happiness Express, Inc. However, because of the characteristics of illegal acts explained above, an audit made in accordance with generally accepted auditing standards provides no assurance that illegal acts will be detected or that any contingent liabilities that may result will be disclosed.
Sullivan did a bad job checking and did not apply the proper controls. The auditors ignored the suspicious nature of the large receivable from Wow Wee and West Coast Liquidators that resulted from credit sales recorded by Happiness Express in late fiscal 1995. The four common tendencies that cause limitations in our judgment processes are, availability, confirmation, overconfidence, and anchoring. Auditors failed to include the receivable in the year end cutoff testing 3. Finally, the case raises the question of corporate culture and the role it plays in the effectiveness of a complaint process in a large multifaceted… Happiness Express In 1989, two longtime sales reps in the toy industry, Joseph and Isaac Sutton, founded Happiness Express, Inc. The company had a track record of picking merchandise winners 2. This case pointed out some clues to some possible fictitious sales which help in the real world.
For example, in the Health Management case, if the audit team would have spent more time on the inventory they would have been able to obtain more evidence and ultimately discover the fraudulent increase in inventory. Other red flags included the high turnover in the CFO position, and the rapid growth in net income. Audit Results Happiness Express Inc. They also should be able to claim HealthSouth contributed to, and was the primary cause, of any damages it incurred. There was also believed to be a lack of sufficient evidence made by the audit partner and manager. Normally, an audit in accordance with generally accepted auditing standards does not include audit procedures specifically designed to detect illegal acts. Wow Wee confirmation had wrong address 2.
Goldberg forged the Wow Wee confirmation and faxed it to the auditor Which of the following was NOT a problem with the West Coast Liquidators receivable? The business model developed by the Sutton brothers involved acquiring the licensing rights to market toys and other merchandise featuring popular characters appearing in movies, television programs, and books and other publications intended principally for children. Desktop · Server 1. The Wow Wee receivable was collected 3. Why did they perform such a careless audit? Sutton believed that Budgie would be a huge hit in the United States and generate large sales of toys and related merchandise linked to him and his small squadron of friends. Anderson had many audit clients, and they were not new to the auditing world. In the examination of accounts receivable, alternative procedures may include examination of subsequent cash receipts including matching such receipts with the actual items being paid , shipping documents, or other client documentation to provide evidence for the existence assertion. Third, the audit team failed to properly investigate employee complaints.
These procedures would include reviewing the consolidation entries, adjusting journal entries, as well as the controls over such entries. When auditors performed the confirmation process, they kept contacting Goldberg and using him as an intermediary, which is a violation of independent standard. They also accepted explanations of whistle-blower accusations that might have revealed the fraud if followed up. ADVANCED SEARCH FORM Utilize our advanced search form to filter the search results by Company Name, City, State, Postal Code, Filing Jurisdiction, Entity Type, Registered Agent, File Number, Filing Status, and Business Category. Wow Wee was one of the company's largest suppliers 5.
