Abstract
This paper discusses the strengths and weaknesses of published financial statements and of accounting ratios as a means of interpreting the position and performance of a business. It compares the strengths and weaknesses of an absorption costing approach compared with a marginal costing approach in decision making. The paper explains how the use of activity based costing might improve a firm's decision making.

From the Paper
"Published financial statements including audited financials statements have a number of weaknesses. Some of the limitations of financial statements and financial statement analysis include Past financial performance good or bad is not ..."

Tags:accounting, audited financial statements, unaudited stateents, weaknesses, traditional cost accounting, absorption costing, marginal costing, activity based costing

Abstract
This paper presents an analysis of the similarities and differences between the required annual reports filed by a publicly traded company, and the required reporting done by government entities on the CAFR. It gives special attention to what is required in a company's financial statement by the SEC. Consequences of failure to comply are also examined.

From the Paper
"According to an essay published on the IBM website, a publicly traded company's annual report presents data about the year's operations in addition to examining the company's future plans and prospects. Annual reports generated by public companies include a balance sheet, income statement, statement of cash flows, auditor's report and management's discussion and analysis of the result of operations. Corporations that fail to comply with the SEC's mandated reporting requirements can face a variety of sanctions including fines and even having the sale of the..."

Tags:annual report, public company, SEC, CAFR, government entity, required reporting, audited financial statements

Abstract
This paper summarizes the ASB exposure draft on Consideration of Fraud in a Financial Statement Audit. This draft, which supercedes SAS 82, introduces new concepts and requirements to assist the auditor in detecting fraud. It discusses the definition of fraud, identifying risk of fraud, and general assessment of fraud risk. The summary outlines the appropriate response to each fraud risk identified through the analytical process, including evaluation of implications.

From the Paper
"As the need for new standards and ways to look for this fraud got stronger, the AICPA auditing standards board (ASB) responded by issuing an exposure draft on Consideration of Fraud in a Financial Statement Audit. This exposure draft would supersede SAS 82, which is the current standard for detecting fraud in an audit. The exposure draft was not meant to change any of the auditor's responsibilities in a financial statement audit but rather introduces new concepts and requirements to assist the auditor in detecting fraud. Some of the major areas that the exposure draft discusses are the description and characteristics of fraud, discussion of fraud and professional skepticism, a wider range of inquiries, identifying and assessing risks that can result in fraud, evaluating programs and controls and responding to the results of the assessment. "

Tags:aicpa, accounting, audit, finance, standard, board

Abstract
This paper discusses the view that it is impossible to satisfy the needs of different users with a single set of published accounts. The paper contends that without standards, users of financial statements would need to learn the accounting rules of each company and comparisons between companies would be difficult.

From the Paper
"The Accounting Standards Board was working for some time to produce a definite Statement of Principles for financial reporting. The statement of Principles is a description of the fundamental approach that the ABS believes, should, in principle, underpin the financial statements of profit orientated entities. The Statement is intended to be a comprehensive and reasonably detailed description of that approach, and the approach itself is intended to be internally consistent, up to date and in line with the approached adopted elsewhere in the world. (ABS 1999)"

Tags:audits, investors, creditors

Abstract
This paper explains that publicly-traded companies, by law and in compliance with the Security and Exchange Commission (SEC), must submit financial statements to the SEC and to their shareholders in accordance with Standard Accounting Practices and Auditing Procedures dictated by standards established by the American Institute of Certified Public Accountants. The author points out that PepsiCo and the Gillette Company present different reporting styles; although both meet and far exceed all reporting requirements, the Gillette Company "plays it very close to the vest" by restricting the distribution of their data concerning their operations such as presenting their "Costs of Goods Sold" figures as muddled as they can keep them legally. The paper concludes that the consensus from this analysis of these four companies is that their current ratio trends should continue over the next two to four years, with the possible exception of Bausch & Lomb, which must address its stiff competition or continue to suffer the company's downward trend.

From the Paper
"Bausch & Lomb publish their Returns on Equity, a dismal 6.4%, and 43.86% below the Industry Average. In addition, their published Returns on Assets also are dismal at 2.1%, and 56.25% below the Industry Average, with their Returns on Inventory Costs equally bad at 4.7%, and 37.33% below Industry Average. This company is the only one of the four to publish data usable to calculate these returns. All three of the others do not publish the information; for security reasons, both government enforced and self imposed therefore these numbers are impossible to compute for them in any comparative format."

Tags:returns-on-equity, costs, competition, standards

Abstract
This paper discusses generally accepted auditing standards and explains that they are guidelines, which auditors must follow while conducting an audit of a company's or government entity's financial statements. Specifically, the paper defines general, fieldwork and reporting standards as established by the American Institute of Certified Public Accountants (AICPA). The paper then applies these standards to financial operational and compliance audits especially under the requirements of the Sarbanes-Oxley Act and the Public Company Accounting Oversight Board (PCAOB).

Table of Contents:
Nature and Functions of Auditing
General Standards
Fieldwork Standards
Reporting Standards
How These Standards Apply to Financial, Operational, and Compliance Audits
Audit Effects and Requirements of Auditors by the Sarbanes-Oxley Act and PCAOB

From the Paper
"Reporting Standards are concerned with whether the financial statements are presented in accordance with GAAP, consistency, informative disclosures, and an expression of opinion on the financial statements that have been audited. The audit report must state whether the financial statements have been prepared in conformity with GAAP and whether or not there is consistency from one year to the next."

Tags:guide framework, financial statements, operational compliance

Abstract
This paper is a case study of Dream Products and involves an effort by the company's independent auditor to determine if the company's financial statements misrepresent the company's financial condition. It considers the issue of quality control as an area of concern for the organization.

From the Paper
"Ideally you have read the six page summary about Dream Products distributed as a primer for our brainstorming and kickoff meeting. One of the areas of concern that must be addressed in this audit involves the allegations made by Ms. Parker that quality control problems at Dream Products resulted in a high volume of defective returns and that the scope of this problem and the cost of this problem are being misrepresented by Dream Products Management. As you know we have a specific obligation..."

Tags:Sarbanes oxley, sas 99, audit fraud, management, insider trading, CPA, auditor, audit letter, fraud reporting

Abstract
This paper first explains that, since the preparers and issuers of financial statements often have an inducement to overstate the financial health of the business entity, users of these reports require a third party to ensure their trustworthiness. Next, the author presents the professional accounting progression from assurance that gives credibility to the report, to the position of attestation when assurance is provided and then to the final state of auditing as these assertions are exemplify in a company's financial statements. The paper underscores the importance of the Sarbanes-Oxley Act of 2002, which created an increased level of oversight and accountability by the accounting profession and managers of an organization and of diligence by their investors and creditors.

From the Paper
"The Public Companies Accounting Oversight Board (PCAOB) sets standards for audits, independence, ethics, and quality control for all public companies. The PCAOB was created by the Sarbanes-Oxley Act of 2002. The Securities and Exchange Commission governs the financial reporting of public companies. Further the Financial Accounting Standards Board or FASB sets the standards for Generally Accepted Accounting Standards (GAAP). The FASB was created in 1973, and the SEC charged them with setting all GAAP standards. The GASB, Governmental Accounting Standards Board, sets all standards for governments."

Tags:credibility, systematic process, verifying, internal controls standard, compilation services

Abstract
This paper examines Nike and Reebok's present stock price and highest and lowest stock price. The paper looks at an accounting firm audit of its financial statements and its standard industrial classification (SIC) code. The paper also examines the companies' ranking within the industry.

From the Paper
"Nike's financial statements are audited by PriceWaterhouseCoopers LLP. The primary SIC Code for Nike Inc. is Apparel and other finished products made from similar material. NikeTown stores would be classified under SIC code Apparel and accessory stores. Nike Inc. is engaged in the design development and worldwide marketing of footwear, apparel equipment and accessory products..."

Tags:market share, sales, profits, SIC code, stock, auditors, CPA, ranking

Abstract
This paper describes the growth and success story of The Home Depot, Inc. created by three men, which redefined the industry. The paper explains how the founders left the management of the company in the hands of Robert Nardelli, who it was hoped would continue the company's success. This strategic audit is after the change in management and includes a detailed IFAS, EFAS, SFAS as well as financial ratios. The paper includes recommendations made based on the results of the strategic analysis as well as a financial analysis.

Case Abstract
Executive Leadership
Strategic Audit
Current Mission
Current Objectives (for 2010)
Current Strategies
EXTERNAL ENVIRONMENT (EFAS see EXHIBIT 1)
INTERNAL ENVIRONMENT (IFAS see EXHIBIT 2)
Corporate Structure
Corporate Culture
Corporate Resources
Marketing:
Finance:
Research and Development:
Operations:
Human Resources Management
STRATEGIC ALTERNATIVES
Continue Related Diversification Strategy via Acquisitions
Pros:
Cons
Expand Retailing Stores in Latin America & Beyond
Pros
Cons
Introduce New Products in Current Retail Locations:
Pros
Cons 12
RECOMMENDATION 13
Continue Present Diversification Strategy 13
IMPLEMENTATION 14
EFAS, IFAS AND SFAS EXHIBITS 15
Exhibit 1 EFAS (External Factor Analysis Summary) 15
Exhibit 2 IFAS (Internal Factor Analysis Summary) 16
Exhibit 3: SFAS (Strategic Factor Analysis Summary) 17
FINANCIAL ANALYSIS 18
A. FINANCIAL RATIOS 18
B. COMMON SIZED STATEMENTS 19
References 21

From the Paper
''As of August 29, 2006, the company operated 1,832 Home Depot stores in all 50 states and the District of Columbia, Puerto Rico, and the Virgin Islands, plus 143 stores in Canada and 57 in Mexico. It also operated 34 EXPO Design Center locations in the U.S., 900 Home Depot Supply locations (including 11 Contractor's Warehouse locations) in 44 states and Canada, and eleven Home Depot Landscape Supply stores in the Atlanta and Dallas-Fort Worth areas. The company also had two Home Depot Floor Stores in Texas and Florida that primarily sold flooring products.
''The case begins with Robert Nardelli summarizing the company's performance during the five year period (2001 - 2005) since he joined Home Depot as its Chief Executive Officer. On most measures, the company was clearly an outstanding success. Sales and earnings per share had doubled since 2000. The number of stores had increased by more than 900 and the operating margin had increased from 9.2% to 11.5%. The company had expanded its installation services business. Growing through acquisitions, the company had successfully increased its sales to the professional builder market.''

Tags:strategy, financial rations, mission, vision