Internal Control and Fraud 2

Anonymous
timer Asked: Jun 6th, 2018
account_balance_wallet $15

Question description

You are the senior auditor assigned to the team performing an audit for Restorative Pharmaceutical Corporation (RPC), a 10-year-old publicly held corporation listed on the New York Stock Exchange which specializes in anti-aging products such as vitamins protein infused beverages, and dietary supplements. RPC’s corporate office is located in San Diego, CA.

The audit firm’s lead and senior audit manager and firm partner, Scott Payne, CPA, has requested that you develop two audit/internal control procedures which address the following issues which emerged during the past three reviews of RPC:

  1. The company has an equal balance of equity and debt which compose its capital structure. It is subject to a number of debt covenants, including its current ratio, which should be maintained above 1.5 per the debt covenant. The year-end current ratio attained is 1.45. There is no opportunity to refinance short term debt and reclassify liabilities to ameliorate the ratio.
  2. A number of sample products are provided to fitness centers, health fairs, marathons, and charitable walking events. A significant stock sample pull amounting to $200,000 for the New York marathon was not recorded as an inventory reduction for this promotional event, and was discovered during the physical inventory at year end.

Please submit your assignment. 600-800 words. APA Format. Please include references.

Tutor Answer

Thomas574
School: Carnegie Mellon University

Done, thank you.
Done, thank you.

1

Running head: ORGANIZATIONAL STRUCTURE, STRATEGY AND FINANCIAL
CONTROL

Organizational Structure, Strategy and Financial Control
Institution
Name

2

ORGANIZATIONAL STRUCTURE, STRATEGY AND FINANCIAL CONTROL
Definition of Organizational Structure and Control
Organizational structure is the hierarchy over which lines of communication, authority,
duties and rights are arranged. It determines how power, roles and responsibilities are controlled,
coordinated, allocated and the manner in which flow of communication is effected in the different
management levels. The s...

flag Report DMCA
Review

Anonymous
Outstanding Job!!!!

Similar Questions
Hot Questions
Related Tags

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors