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rodikova [14]
2 years ago
9

DEF Ltd is a global leader in the manufacture, integration and support of networking and telecommunications systems. The company

sells broadband wireless products and a line of handset equipment to operators in emerging and established telecommunications markets worldwide. The auditor reported material weaknesses in the company’s internal controls to the audit committee. Significant deficiencies related to revenue and deferred revenue accounts and the associated cost of sales were noted. These material weaknesses were evidenced by the identification of six separate transactions aggregating approximately $5 million in which revenue was initially included in the Company’s financial statements before all criteria for revenue recognition were met. In addition, there were other transactions for which there was insufficient initial documentation for revenue recognition purposes, but which did not result in any adjustments to the Company’s financial statements. If unremediated, these significant deficiencies have the potential of misstating revenue in future financial periods. The Company’s planned remediation measures reported to the audit committee include the following: a. The Company plans to design a contract review process in China requiring financial and legal staff to provide input during the contract negotiation process to ensure timely identification and accurate accounting treatment of nonstandard contracts. b. The Company conducted a training seminar regarding revenue recognition, including identification of nonstandard contracts, in Australia and a similar seminar in China. The Company plans to conduct additional training seminars in various international locations regarding revenue recognition and the identification of nonstandard contracts. c. The Company will begin requiring centralized retention of documentation evidencing proof of delivery and final acceptance for revenue recognition purposes. Required: 1. Using the disclosures above as a starting point, brainstorm about the challenges regarding intern
Business
1 answer:
Serjik [45]2 years ago
5 0

Some of the challenges of this company include lack of control over financial reporting in all branches, and inaccurate data to make decisions for next years.

DEF Ltd's main problem is the inaccuracy regarding the recognition of revenue and other inconsistencies in financial reporting. This problem includes:

  • Inaccuracies related to revenue and deferred revenue.
  • Lack of documentation of some transactions.

Moreover, these problems are intended to be solved through a review process and training seminars. These two ideas are useful for the problem; however, the company might face some challenges and problems such as:

  • Lack of control in all branches: DEF Ltd seems to be a big company with multiple branches around the world. This makes it difficult for the company to control all financial records even if employees are educated about the process through seminars.
  • Inaccurate data for next periods: Considering there are lots of inconsistencies and some of the reports are incomplete, it is likely even after the review process the company does not have complete information about the previous transactions or revenues. This can affect future projections and decisions.

Note: This question is incomplete; here is the missing part:

Using the disclosures above as a starting point, brainstorm about the challenges regarding internal controls and that a company may face in doing business internationally?

Learn more in: brainly.com/question/10916805

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From 2000 to 2003, the number of employees at a certain company increased by a factor of 1/4. From 2003 to 2006, the number of e
Rina8888 [55]

Answer:

Let's assume that "X" be the number of employees in 2000.

∵ it's given :

From 2000 to 2003: the number of employees increased by a factor of 1/4

From 2003 to 2006: the number of employees decreased by a factor of 1/3

∴ We can equate the following details:

X×(increase in employee)×(decrease in employee) = 100

X×(1+\frac{1}{4})×(1-\frac{1}{3}) = 100  

X×(\frac{5}{4})×(\frac{2}{3}) = 100  

X×(\frac{10}{12}) = 100  

X = 100×(\frac{12}{10})  

<em>X = 120  </em>

<u><em>Therefore, the correct option is (b)</em></u>

6 0
3 years ago
Using these data from the comparative balance sheet of K. Leen Company, perform vertical analysis.
iogann1982 [59]

Answer and Explanation:

The vertical analysis is presented below:

Comparative Balance Sheet

<u>Particulars Dec 31, 2020      Percentage    Dec 31, 2019            Percentage </u>

(a)                      [(a) ÷ $3200000] × 100 (b)   [(b) ÷ $3000000] ×100

Accounts

receivables $400,000            12.5%             $400,000                  13.3%

Inventory        $864,000             27.0%           $600,000                   20.0%

Total Assets  $3,200,000          100.0%           $3,000,000              100.0%

4 0
2 years ago
Patrick patrone (single, 2 allowances), $925 wages __________ carson leno (married, 4 allowances), $1,195 wages __________ carli
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<u>Solution and Explanation:</u>

1) P<u>atrick patrone </u>

Single and 2 allowances =\$ 925-\$ 155.80-\$ 155.80=\$ 613.40

It falls under the category of Over $509 but under $1,631

The amount of income tax that he withholds is $36.70 + 12% of excess over $509

\$ 36.70+12 \%(\$ 613.40-\$ 509)=\$ 36.70+12 \% \text { of } \$ 104.40=\$ 36.70+\$ 12.53=\$ 49.23

The amount to withhold for Federal income tax is $49.23.

2) <u>Carson Leno, married and 4 allowances </u>

= $1,195 - $155.80 - $155.80 - $155.80 - $155.80 = $571.80

The wages falls under the category of Over $444 but under $1,177.

The amount of income tax that he withholds is $0 + 10% of excess over $444.

\$ 0+10 \%(\$ 571.80-\$ 444)=\$ 0+10 \% \text { of } \$ 127.20=\$ 0+\$ 12.72=\$ 12.72

The amount to withhold for Federal income tax is $12.72

3) Carli lintz single, zero allowances and wages is $700.

$700 - $0 = $700 (zero allowance)

The wages falls under the category of Over $509 but under $1631.

The amount of income tax to withhold is $36.70 + 12% of excess over $509

\$ 36.70+12 \%(\$ 700-\$ 509)=\$ 36.70+12 \% \text { of } \$ 191 .=\$ 36.70+\$ 22.92=\$ 59.62

The amount to withhold for Federal income tax is $59.62.

4) Gene hartz. Single, 1 allowance and $2,500 wages.

$2,500 - $155.80 = $2,348.20

The wages fall under the category of Over $1,631 but under $3,315

The amount of income tax to withhold is $171.34 + 22 % of excess of $1,631 \begin{aligned}&\$ 171.34+22 \%(\$ 2348.20-\$ 1631)=\$ 171.34+22 \% \text { of } \$ 717.20 .=\$ 174.34+\$ 157.78=\\&\$ 332.12\end{aligned}The amount for Federal income tax is $332.12

5) Mollie Parmer. Married, 2 allowances and wages is $3,600

\$ 3,600-\$ 155.80-\$ 155.80=\$ 3,288.40

The wages falls under the category of Over $1,177 but under $3,421

The amount of income tax to withhold is $\$ 73.30+12 \%$ of excess over $\$ 1,177$ \begin{aligned}&\$ 73.30+12 \% \text { of }(\$ 3,288.40-\$ 1,177) .=\$ 73.30+12 \% \text { of } \$ 2,111.40 .=\$ 73.30+\$ 253.37=\\&\$ 326.67\end{aligned}The amount for Federal income tax is $326.67.

<u>NOTE :</u> - the withholding allowance is deducted from the wages, the amount of single allowance is $155.80.

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Describe a situation in which your ability to do a great job was prevented by a company, a peer, or a supervisor. What prevented
marin [14]
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6 0
3 years ago
You are the beneficiary of a life insurance policy. the insurance company informs you that you have two options for receiving th
lesantik [10]

So in this case, you would need to find the present value (PV) of the monthly payments. With the information given, you would have a PV= 195,413.08, which is less than the lump sum payment. In this case, you would take the 1 time payment.

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