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
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
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 risks.
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 fraudulent transactions.
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. (PLEASE
MAKE SURE THAT EACH PARAGRAPH HAVE A RESOURCE OR REFERENCE)
Your assignment must follow these formatting requirements:
Be 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 instructions.
Include 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 length.
The specific course learning outcomes associated with this
financial reports, prepare analysis, and draw conclusions based on the
and interpret various financial and operating ratios used in business.
activity-based costing and other managerial accounting concepts to various
capital budgeting situations by calculating financial returns and drawing
internal controls within an organization and create a risk assessment.
ethical theories to evaluate a decision-making process to determine compliance
with professional codes of ethics.
the health of organizations to assess the level of risk in an audit engagement.
financial data for potential fraud and prepare an audit approach for detecting
the risk of financial misstatement in an IT-based environment.
financial data for potential fraud and determine the business relationships
contributing to the fraudulent reporting.
technology and information resources to research issues in accounting
clearly and concisely about accounting management using proper writing