You have been selected as the consultant to develop a business plan for Durango
Manufacturing Company, which is a start-up, medium-sized public manufacturing
company. The CEO has a background in manufacturing and is well versed in supply
chain management. However, the CEO has limited experience in financial
management and creating value for the various stakeholder groups. Your business
plan must include a five (5) year strategy to increase revenues by 10% and a
recommendation for creating an organizational structure to comply with SOX
mandates for strong corporate governance over the internal controls. Your
business plan must also include prescriptions for creating an ethical
environment. Your recommendation must be approved by the Board of Directors
before the company can begin its operations.
Based on your knowledge of accounting and financial, prepare a ten to twelve
(10-12) page report in which you:
the consultant, create an argument that you will present to the CEO that
suggests accounting and financial management knowledge and skills will be
essential to the company’s success and stability over the next five (5)
years. Provide support for your argument.
to the CEO how the company’s stakeholders (investors, lenders, and
employees) will use financial statement information and ratio calculations
to make key determinations related to the financial condition and
operational efficiency of the company. Provide support for your rationale.
the strategy to increase revenue during the five (5) year plan period,
which will need to be achieved through expansion and capital expenditures,
determine which capital budgeting ratio is appropriate for Durango to
evaluate its proposals for capital expenditures, such as NPV, IRR, etc.
Defend your position.
order for the company to improve its operational efficiency, recommend
which production departments should use process, job order, and
activity-based costing—all three (3) of which must be implemented within
Durango. Defend your choice for each department.
CEO would like to consider outsourcing his manufacturing operations if
labor can be supplied cheaper overseas than in the U.S. Create an argument
either for or against outsourcing the manufacturing operation to a foreign
country. Your argument should include key points that support your
position. The key points should address economic and business management
aspects related to outsourcing.
the economic and business environment over the next five (5) years,
indicating at least two (2) ways it may impact Durango Manufacturing
Company’s ability to achieve the desired 10% growth in revenue. Provide
support for your prediction.
a strategy to improve the opportunities for Durango to reach its revenue
goals (i.e., increase revenue by 10% within five  years).
the Internet to research a company similar to Durango that has been
accused of committing fraud. Determine the specific internal control that
was defective, along with aspects of corporate cultural environment that
contributed to the fraud or unethical behavior. Based on these findings,
determine how improving this internal control failure can mitigate future
the potential for fraud within Durango based on the lack of IT controls,
and determine at least two (2) ways Durango will structure its internal IT
controls to ensure that such controls are effective in detecting
the current roles and responsibilities of Durango’s audit committee
members, and propose a model for your company to improve the effectiveness
of the audit committee and thus ensure effective corporate governance.
at least six (6) quality academic resources in this assignment. Note:
Wikipedia and other Websites do not qualify as academic resources.
Your assignment must follow these formatting
typed, double spaced, using Times New Roman font (size 12), with one-inch
margins on all sides; citations and references must follow APA or
school-specific format. Check with your professor for any additional
a cover page containing the title of the assignment, the student’s name,
the professor’s name, the course title, and the date. The cover page and
the reference page are not included in the required assignment page
The specific course learning outcomes
associated with this assignment are:
reports, prepare analysis, and draw conclusions based on the financial analysis
interpret various financial and operating ratios used in business.
costing and other managerial accounting concepts to various business
budgeting situations by calculating financial returns and drawing appropriate
controls within an organization and create a risk assessment.
theories to evaluate a decision-making process to determine compliance with
professional codes of ethics.
Evaluate the health of
organizations to assess the level of risk in an audit engagement.
data for potential fraud and prepare an audit approach for detecting fraud.
Assess the risk of
financial misstatement in an IT-based environment.
data for potential fraud and determine the business relationships contributing
to the fraudulent reporting.
Use technology and
information resources to research issues in accounting management.
Write clearly and
concisely about accounting management using proper writing mechanics.