A 72 year old black female with congestive heart failure (The Holistic Patient Assessment) Health Medical Assignment Help

Drew Bergman was the audit senior manager during his three-year tenure at BDO Long Island office, Tsai according to the case study worked on roughly 20 engagements that Bergman spearheaded. Moreover, Bergman’s and Tsai working relationship was further solidified by their personal relationship as she was very good friends with Nany Bergman (Drew’s wife) who also worked at BDO. Over the years the two couples shared holidays together and their children visited one another frequently. We can observe that the inventory in transit was a major concern for the audit team and it took them a month or so to accept management assertations along with performing additional tests. For example, BDO performed varies mathematical tests, examined the expense report of the truck driver, and discussed the inventory transfer with the controller among other audit procedures.

In the recent discussions we have talked extensively about the importance that the auditors maintain their independence in a financial statement audit. Independence means that the auditor has not had any undue influence on its findings. For example, the auditor has no pressure to provide a “clean” opinion. According to SEC rules, the general standard of auditor independence is that it is impaired if a reasonable, fully informed investor would conclude that the auditor is not capable of exercising objective and impartial judgment on all issues encompassed within the audit engagement.

Albeit, Drew at least in the readings never directly asked Tsai to look the other way as an investor hanging on every word of the SEC general standard of auditor independence; I would conclude she was incapable of making an objective decision on HMI’s financials. To this extent, some of the vulnerabilities that may develop because of trust through a working relationship:

• The issuer having undue influence over the audit, because of the previous working relationship. This will impact the independence of the audit
• The breaking of the professional relationship between the client and the auditor, because of the previous relationship.
• The auditor learning about additional information outside of the scope of the audit.

SOURCES TO USE

see attached

Requirements .I)Use the comments on excel file named basic analysis to complete PROJECT 1.

II) Complete the parts highlighted in red and Crystal Ball.

What should we write in the report? What is its structure?

Per
project description, you should write a report providing the CFO with
your recommendation whether Zeta should set up the plant to produce the
Spenza’s. In your report, please explain the results of each portion of
your analysis. Report should also include at the beginning a one-page
Executive Summary summarizing the results of your analysis and
recommendation. Don’t forget to add references to sources used. So, the
possible structure of report is:

Executive Summary
Introduction
Capital Budgeting recommendations
Risk
analysis (including discussion of scenarios, breakeven, optional Monte
Carlo simulation, possible discussion of risk factors)
Conclusion
References
Appendix (Excel file as a separate document)

When
calculating FCF, you use OCF as a starting point. However, OCF takes
into account interest paid, while FCF should assume all-equity
financing. How to reconcile the two?

You may either assume all
equity financing when calculating OCF ( = EBIT (1-Tax Rate) +
Depreciation) or adjust FCF by subtracting interest rate tax shield.

I am still confused with calculating NWC cash outlay. Can you give an additional example?

Imagine
hypothetically that you are planning to start operations in year 2019
(your year 1) and you estimate that your total direct costs in 2019 will
be $300 M, in 2020 $400 M and in 2021 $200 M (sales go down). If your
NWC is 5% of your total direct costs, it means that at the beginning of
2019, so technically in year 0, you will have to have 5% x 300 M = 15 M
in NWC, in year 1 (before 2020) you will have to have 5% x 400 M = 20 M,
and in year 2 (before 2021) you have to have 5% x 200 M = 10 M in NWC.

What cash flow effect will it have?

Before 2019 you have no NWC, so you have to outlay (15 – 0) = 15 M in year 0 (negative cash flow)

Before
2020 you already have 15 M of NWC, but you need 20 M. It means you need
additional cash outlay of (20 – 15) = 5 M in year 1 (negative cash
flow)

Before 2021 you already have 20 M of NWC and you need only
10 M that year. It means that in the language of outlay you have (10 –
20) = – 10 M, which effectively means that you have an inflow of 10 M.

The
case says “Labor is unionized; number of workers and wages do not
depend on the number of units produced” Why is it important?

It is
important, because the total annual labor costs remain constant, they
do not depend on the number of cars produced in a given year

What are the steps in finding Zeta’s cost of equity?

To
find our company’s cost of equity you use CAPM formula, for which you
need to find the levered beta and download T-bond rate as a proxy for
risk-free rate (e.g., from U.S. Treasury website) and market risk
premium (e.g., from Damodaran’s site – this is the link to equity premium table.)

Finding company’s levered beta consists of

1) finding levered betas of peer companies (Yahoo Finance has it),

2) unlevering each peer’s beta using this peer’s capital structure and tax rate.

3) finding the average unlevered beta

4) finding Zeta’s levered beta using Zeta’s target capital structure and tax rate.

What is the Target Debt/ Equity?

Target
Debt/Equity (and Target Marginal Tax Rate) are Zeta’s Debt/Equity Ratio
(and marginal tax rate) used for Spenza project. Information is given
in the Project Description.

Can I use foreign car-making companies as peers?

Yes
you can, but be very careful with currency conversion! One of very
common mistakes is that students don’t realize in which currency (and in
what units) financials are reported for these companies

Is Crystal Ball required?

Crystal
Ball is completely optional. However, if you run a Monte Carlo
simulation (Crystal Ball or any other software) and analyze its results
in your report, you can receive an extra credit up to 5% of the total
project’s grade.

How do I run Crystal Ball? For example, how do I define assumptions in Crystal Ball?

You might find this link (clickable) useful. It is an example of using CB for a different problem.

Here is how you define assumptions (it is described in the manual in more detail, but here is a much abbreviated version):

First
of all, you have to decide, which inputs will be your assumptions. In
this exercise I tried to help you – all cells which would contain
assumptions are color coded bright green. Cells with assumptions should
not contain any formulas. You may put numbers there (sometimes you even
should put a number, if distribution of another cell depends on this
cell’s value and the value can’t be zero). These numbers are irrelevant,
because during the simulation they will be replaced. For example, B24,
B27, B28 and other cells of the same color will contain assumptions

Second,
you have to decide on distribution (uniform, triangular, etc.) and its
parameters. You can choose your own or you can follow my suggestions
(next to each cell).

Third, now you are ready to actually create
assumptions. Select the cells, where the assumptions will be – you can
select only one cell, or by keeping CTRL button, you can select all
cells which would have the same type of distribution (e.g., uniform).
Then click on “Define Assumption” in Crystal Ball menu and choose the
distribution (e.g., uniform). Once you do that a dialog will open which
would ask for distribution parameters. You input these parameters and
click “OK”. If you selected several cells, it will move to the next
cell, and you enter parameters for this cell. If you want the value a
cell to be correlated with another cell, you click on “correlate”
button. If you want to change the distribution type, you click on
“Gallery” and change the distribution type.

Once you are done with
assumptions, you have to define which cells will contain the Crystal
Ball forecast – “Define Forecast”. It should be NPV and IRR. You might
also want to have other outputs as well (e.g., FCF for each year).

Once you defined your assumptions and your forecast, you are ready to run the simulation. Click “Start”

Once
the simulation is over you can create report or look at charts (“View
Charts”) where you can choose, which charts you want to see. In fact,
you can also use “Analyze” in the dialog box for simulation. Only
assumptions and forecast cells will be available for viewing charts.
Chart will show you distributions and allow to get answers to questions
like “What is the probability of NPV > 0”.

If you want to create Tornado diagram or Sensitivity Chart (Spider Chart), you go to More Tools and choose Tornado Analysis.

Crystal Ball requires some effort to learn, but once you succeed you will see how powerful this tool is.

Student Workspace does not show files on my computer, what should I do to open a file to run Crystal Ball?

Working
in Student Workspace is like working on a completely different computer
somewhere in a cloud – you don’t have access to local files on your
computer. In order to open an existing file you have to upload this file
to a cloud storage space, like Dropbox or Google Drive. Then open a
browser in Student Workspace and download your file from the cloud
location. After you create the file with simulation results in Student
Workspace, repeat the procedure – upload file to cloud and then download
it to your computer.

The conflict of interest plays such a big role in today’s environment. I’m not really referring to any specific environment cause it applies to almost (if not all) every kind of environment there is. According to Jean Murray from The Balance Small Business” the ‘conflict of interest’ is defined as “A conflict of interest is when a party has competing interests or loyalties because of their duties to more than one person or organization. A person with a conflict of interest can’t do justice to the actual or potentially conflicting interests of both parties.” and this conflicting situation produces blurriness in making key decisions and often results in choosing one side over another, affecting either positively or negatively the parties involved.

I mentioned that this situation can happen in every environment at every level from an accounting environment to a family environment, from a CFO of a big corporation to a child caught in between his/her parents. In this particular situation, we will refer to how this situation applied to a big company in the mid 1990s: Health Management Inc.

In the case of this corporation, for me, the biggest conflicting was in Drew W. Bergman, the CFO, who before being CFO of the corporation was an employee of the Mid-Tier Firm that audited the client, BDO, and directly supervised the 1989 and 1990 audits to the interested party.

That’s the reasoning why the SOX explicitly addresses this issue in Section 206 of the Act as it establishes a one-year cooling off period before a member of the audit engagement team may accept employment in certain, designated positions with an issuer.

This is extremely important because one must be able to clearly draw the line between the two charges. It is impossible for any person to be the one who pays and the one who receives without some type of lean to favor one of the two positions. In my opinion, this section of the SOX should be amended and require a longer period between being an audit partner and a director of the auditee company who has a say in the financials of the company. My recommendation would be 5 years but I guess that’s just my opinion haha.

This conflict is what made possible that inventory accounts of the corporation were inflated, falsified the aging of the AR and therefore, shown an inflated revenue in the financial statements of HMI.

sources to use:

see attached files

You read and practiced with some concepts concerning cultural
considerations in writing for a diverse audience prior to this
Assignment. The letter package Assignment provides you with an
opportunity to practice corresponding with an international audience.

The Letter Package Assignment Scenario

Your Assignment involves a combination of research and writing. You
are the marketing director for Snyder Software based in your hometown
and your company is considering overseas markets for the company’s
language translation software. Your boss Anne Snyder has asked you to
research potential overseas markets, research effective communication
strategies in your proposed country, summarize your research and results
in a memo to her, and finally draft a letter to a potential distributor
in the country you have identified as a viable market.

You will choose a country that you believe will be a good overseas
market for your company’s language translation software (you may choose
any country that is of interest to you). Your international research
begins with learning about the country, how business writing is
conducted, and what expectations are for correspondence with a potential
distributor in that country.

Part I – Memo Scenario:

Anne Snyder, President of Snyder Software, has asked you to research
overseas markets for the language translation software program the
company produces. She wants you to choose a viable country for
distributing the product, explain why it is a viable country, and the
best ways to communicate with business professionals in the country you
selected. She wants you to draft a letter to a prospective distributor
in that country for her review.

Snyder has asked you to present your research in an organized,
focused memo to her. She has asked that you clearly outline the research
you conducted, the sources you reviewed, the information you gathered,
and the criteria needed to correspond effectively with the overseas
market – what business writing etiquette is specific to the country you
chose? How are those business writing expectations addressed in your
draft letter?

The memo to Snyder should be 350–500 words. The memo should include at least two viable references using APA format and citation style. Put your references on their own page following your memo to Snyder.

just pretending you are working at Synder’s software when you write a memo

• Identify the country you selected for distribution of the software and why it is a viable market.
• Outline the research you conducted to identify the viable country
  and to learn how to communicate in writing to the potential distributor.
• Include the sources reviewed for your research in your memo to
  Snyder, both using in-text citations and on a references page following
  the memo.
• Include information you gathered using a combination of summary, paraphrase, and limited direct quote from your sources.
• Explain the criteria and cultural considerations used to draft the letter.
• Research potential overseas markets for Synders product for translation software
• 1 page for the internal memo. please put 2 sources for the memo
• research for conducted
• why you chosen the country chose and what are the benifits you chose the country,information gathered
• criteria for introduction, body, conclusion

Part II – Letter Scenario

Part 2: Prepare a letter of introduction to send to a
fictitious distributor within the country you researched introducing
yourself, your company, your product, your interest in working with
them, and why they should be interested in distributing your product.
You will make up the name of the distributor and the contact person.
Make certain your letter meets the cultural expectations of the country
you selected based on your research. Research letter writing format
expectations in your country of choice – business practices vary, so do
your research!

In your draft letter to the prospective distributor:

• Introduce yourself, your company, and your product to meet the
  cultural expectations of the country distributor (see useful resources
  provided below).
• Explain your interest in working with that distributor.
• Explain why the distributor will be interested in distributing your product.
• Address the cultural expectations relevant to the country you chose.
• criteria for introduction, body, conclusion letter to the distributor
• 1 page for the business letter
  

Your letter package submission (memo, references, and draft letter)
will demonstrate your ability to research, summarize that research,
document the research (remember your APA citations and referencing from
the Discussion), and prepare additional documents based on information
gathered and cultural literacy.

Submit the letter package as a single Word file, just as you would
attach the file to your company president in business. Your letter
package will include the memo to Snyder, your list of references cited
in the memo, and the requested draft of the letter. Remember to check
your punctuation, spelling, and grammar before submission to the
Dropbox.

Access the rubric

Useful Resources:

International Business Etiquette, Manners, & Culture. Retrieved from http://www.international-business-etiquette.com/

Please see attached rubic