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ACCT 630 MIDTERM EXAM

ACCT 630 MIDTERM EXAM

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Author: Joyce Buda
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http://theperfecthomework.com/acct-630-midterm-exam/


1) You are an internal auditor for a large firm and received a tip through the firm's hotline that a senior sales representative appears to be living beyond her means.  You have reviewed their company personnel file and searched available public information to gather the following data about the potential fraud suspect.  Do a net worth analysis on these data and show your calculations.  I have also attached a spreadsheet file to the assignment that contains these data in case you would like to use Excel to do your calculations.  You can either show your calculations in a table in this Word document or attach a spreadsheet file with your calculations to the assignment.  If you do submit a spreadsheet file, name it with your own name and "Q1," e.g., "Jim Peters Q1."
1)          Read the following scenario and answer the questions that follows it.
Bob was recently hired by a systems implementation consulting firm that helped clients implement new comprehensive information systems to support all aspects of their businesses.   When Bob was first hired, he went through weeks of training to help him understand the firm's methods, technology, and culture.  The firm looked for people with the right aptitude who had demonstrated a record of success in previous school, work, or extracurricular activities.  They found that this type of person worked out best for the type of work the firm was paid to do.
 
Bob's first project involved helping a client implement Oracle, a major, integrated commercial database application that usually costs several million dollars to purchase and implement.  Bob was not trained in Oracle and found out that he was replacing two managers who were just removed from the project.  The project was running over budget so the firm looked for ways to get the work done less expensively.  Bob, who billed out the lower "consultant's" rate (instead of the "manager's" rate), was a cheap solution, although it would be tough sell to the client.  They liked the previous managers and felt comfortable with their skill level.  Because of the demand for the Oracle experts, Bob's firm could charge Bob's time at a billing rate $200/hour - expensive, but less than the client paying for the managers.
 
During the first day on the job, Bob's manager took him out to lunch to give him "the scoop" on the project and what he would be expecting from Bob.  "Bob, this is going to be a very difficult assignment.  You've replaced two skilled managers who the client liked.  I know you haven't been trained on, or actually even seen Oracle before, but you're smart and can come up to speed quickly.  I had to tell the client you were an expert in the software in order for them to agree to bring you on.  If you have any questions, don't hesitate to ask me but definitely don't look stupid or seem like you don't know what you're doing in front of the client.  The client will be skeptical of you at first, but be confident and you'll win them over.  I think the transition will smooth out quickly.  See me if you have any questions. "
 
Bob was scared to death; but what was he to do?  He had to get to work.  His immediate tasks were to map out the processes for the client's purchasing and sales operations.  This involved interviewing managers and looking around the purchasing and warehousing operations and well as the sales and collections operations.  Here are some interesting things he found as he did his work.


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