Preview

Ocean Manufacturing, Inc.: the New Client Acceptance Decision

Good Essays
Open Document
Open Document
640 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Ocean Manufacturing, Inc.: the New Client Acceptance Decision
Case 1.1

Ocean Manufacturing, Inc.: The New Client Acceptance Decision

Ocean Manufacturing, Inc. is recommended as a prospective audit client of Barnes and Fischer, LLP. I believe that Barnes and Fischer should accept the client because of Barnes and Fisher's opportunities in consulting and information technology (IT) development, Ocean Manufacturing, Inc.'s sound management/business model and past successful audits, and primarily, the growth potential of Ocean Manufacturing, Inc. following its planned IPO.

Ocean Manufacturing has a favorable market position in the Home Appliance Industry. This is a market that Barnes and Fisher has not focused on and would be an "excellent opportunity for Barnes and Fischer to enter a new market." In addition to entering a new market, Barnes and Fisher would have multiple opportunities for consulting regarding Internal Controls and also in IT Development. Ocean wants advice and guidance for the IPO and troubleshooting its IT system. Barnes and Fisher's local IT Team is "confident they will be able to diagnose Ocean's Control Weaknesses and help Ocean overcome current difficulties." Currently, Ocean Manufacturing Inc. is not Publicly Traded, therefore, its Audit and Internal Controls have been more relaxed but still in accordance with PCAOB. Until the IPO occurs, Barnes and Fischer will be able to offer consulting advice, and according to the PCAOB, will be allowed to engineer the IT Control system after the IPO.

The previous auditor of Ocean Manufacturing, Inc. lacked the technical expertise to understand sophisticated controls software and was not competent in providing required consulting services to move the company towards its goal of national markets and future IPO. "The President explained that the main reason for the switch is to build a relationship with a more nationally established CPA Firm because the Company plans to make an Initial Public Offering, (IPO), of it's common stock within the next few
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Good Essays

    Bear Stearns Case Summary
    • 427 Words
    • 2 Pages

    Bear Stearns Case Summary

    By the 1990’s the firm was a major player in initial public offerings for a variety of foreign and…

    • 427 Words
    • 2 Pages
    Good Essays
    Read More
  • Powerful Essays

    Fin 370 - Virtual Organization Strategy Paper
    • 1586 Words
    • 7 Pages

    Fin 370 - Virtual Organization Strategy Paper

    In this paper Team D analyzes the best option for Kudler Fine Food between going public through an IPO, acquiring another company within the same industry, or merging with another organization. Comparing the strengths, weakness, opportunities, and threats of all three options will help Team D to make a smart decision.…

    • 1586 Words
    • 7 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    Memo: Newco's Management Team
    • 489 Words
    • 2 Pages

    Memo: Newco's Management Team

    Newco’s management team has diverse experiences, with extensive experience in fields such as venture capital, information technology, investment banking, database development, design, and Internet applications. The management team also has strong ties to the financial industry. The connections and experiences of Newco’s management team will help to market their product to the financial corporations. One of the main client targets of the product is investment banks and financial corporations; therefore the management team’s experience in the investment banking field can help market and guide the product for successful entry into that market. Among the outside directors is a PhD holder of economics, as well as, a former lawyer from the university of Chicago that has investment banking experience as well. Both of these outside directors will be able to provide a unique perspective to the management team. On the downside, neither the president nor the founders are technically experienced in the IT field, rather most of their experience is within the financial industry, which would be a weakness to the management team considering that their product is highly technical.…

    • 489 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Better Essays

    Virtual Organization Strategy Paper: Riordan Manufacturing
    • 1305 Words
    • 4 Pages

    Virtual Organization Strategy Paper: Riordan Manufacturing

    IPO ApproachThe Riordan Manufacturing must consider installing an enterprise system that will improve the company financial accounting system. Selling of shares using the IPO and going public opens the company to increased observation. The Securities and Exchange Commission (SEC), state regulators, and the financial community, such as brokerage houses. The Riordan Manufacturing will need to make regular reports to the shareholders and to the security regulators. Presently,…

    • 1305 Words
    • 4 Pages
    Better Essays
    Read More
  • Powerful Essays

    Audit Risk Ann Inc.
    • 1837 Words
    • 8 Pages

    Audit Risk Ann Inc.

    For the reasons given below, I recommend that we accept Ann Inc. as an audit client. Ann Inc. has for many decades risen in stakeholders and customer satisfaction. The company name has grown in notoriety as has its stock. Ann Inc. employs approximately forty-five hundred employees in forty-seven states, four countries and online sales sites. The corporation leases 5.7 million square footage of property for their 980 plus stores. Ann Inc. has contracted with their current audit firm for the past fourteen years; Deloitte & Touche LLP. The corporation has a stable standing with the community for the past…

    • 1837 Words
    • 8 Pages
    Powerful Essays
    Read More
  • Good Essays

    Acct 504 Case Study 2
    • 1426 Words
    • 5 Pages

    Acct 504 Case Study 2

    Before the company decides to go public it is important to know that all publicly traded companies are required to maintain a system of internal controls and procedures for financial reporting in accordance with the Sarbanes-Oxley Act of 2002 (SOX) (Harrison, Jr., Horngren, & (Bill)Thomas, 2013). It is the responsibility of your managers to ensure that there are reliable and active controls in place, and auditors from outside the company must assess and state the soundness of the company’s internal controls. (Harrison, Jr., Horngren, & (Bill)Thomas, 2013) The purpose of this act is to reduce potential corporate fraud by mandating specific procedures for financial reporting.…

    • 1426 Words
    • 5 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Oceanview Assignment 1 - Discussion Questions
    • 774 Words
    • 3 Pages

    Oceanview Assignment 1 - Discussion Questions

    - It appears that a healthy transition from predecessor auditor to successor auditor will occur. This will allow for ease of access to any documents necessary in a successful audit. It also mentions that any management that the firm might need information from is willing and able to give it. This is also a good sign as to why our firm is accepting this audit. The other reason for agreeance to perform this audit is taken directly from Oceanview’s financial statements. Their financial…

    • 774 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Best Essays

    Ldr 531 Week 5
    • 2421 Words
    • 10 Pages

    Ldr 531 Week 5

    The late Don Ruiz was the former CEO who was responsible for setting the goal of 40% annual growth. Ruiz was excited about the IPO move, and saw the change as an opportunity to develop new strategies (University of Phoenix Scenario, 2005). Ruiz’s successor and siblings, together with the board of directors are strongly supporting the former CEO’s ideas, as both the board and the current ownership have a personal interest in the move. Both will gain a large sum of money if the IPO becomes a reality.…

    • 2421 Words
    • 10 Pages
    Best Essays
    Read More
  • Satisfactory Essays

    Advanced Accounting Persuasive Audit Letter on Variable Interest Entities
    • 441 Words
    • 2 Pages

    Advanced Accounting Persuasive Audit Letter on Variable Interest Entities

    It was a pleasure meeting you during the recent seminar, and I am writing to further discuss the opportunity for AJP & Company to provide audit services for San Diego Technology, Inc. As you expressed a concern for your company’s variable interest entities, I can assure you that AJP & Company has diverse and comprehensive experience with complex accounting practices and can address those needs and provide a customized and quality solution.…

    • 441 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Audit 1
    • 1365 Words
    • 5 Pages

    Audit 1

    An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of risk of material misstatement of financial statements, whether due to fraud or error. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting principles used by management, as well as evaluating the overall presentation of the financial statements. The purpose of the audit is to verify the validity of the financial statements through an independent process. Therefore, our audit team will be comprised of auditors that are not tied to Oceanview Marine Company and have not been for at least a year.…

    • 1365 Words
    • 5 Pages
    Good Essays
    Read More
  • Powerful Essays

    Coral Divers Case Study
    • 1094 Words
    • 5 Pages

    Coral Divers Case Study

    After investigating Coral Divers diligently, I am delighted to be hired as a consultant to evaluate Coral Divers strategic situation. Based on my findings, I believe Coral Divers is in a decreasing state of financials and diminishing competitive position. Their net income is negative and increasing in 2005 through 2007. In addition, there is a lack of differentiators at Coral Divers, hindering them from their competition.…

    • 1094 Words
    • 5 Pages
    Powerful Essays
    Read More
  • Best Essays

    Internal Control at Ljb Company
    • 4040 Words
    • 17 Pages

    Internal Control at Ljb Company

    Under SOX, all public traded U.S. corporations are required to maintain an adequate system of internal controls. Corporate executives and boards of directors must ensure that these controls are reliable and effective. As with any business, the transformation of going from a private to public requires some extensive planning and preparation. It is recommended that LJB being a relatively small sized company in terms of its employees should reevaluate the costs versus the benefits of being a public traded company. If LJB decides to issue stock it would be wise to answer the following questions…

    • 4040 Words
    • 17 Pages
    Best Essays
    Read More
  • Good Essays

    Blue Ocean Strategy Paper
    • 980 Words
    • 4 Pages

    Blue Ocean Strategy Paper

    On the other end of the spectrum befalls the blue ocean, which can also be depicted through a literal illustration of its characteristics. In a blue ocean, a vast landscape void of competition and freedom to pursue self-manifested wills is at the discretion of the occupant. A blue ocean is uncharted, where opportunity reigns because those who have sought out these waters have done so through an innovative ability to navigate themselves out of the once crowded red oceans. It is a privilege to occupy these waters, and the following examination will detail why in terms relative to business practices.…

    • 980 Words
    • 4 Pages
    Good Essays
    Read More
  • Powerful Essays

    Consulting Proposal 1
    • 1203 Words
    • 4 Pages

    Consulting Proposal 1

    As more companies enter the marketplace, the need to attract and retain customers will not only increase but also be necessary for survival. The Seagram Company has undergone numerous changes to maintain market share. Again, the company in the midst of major change and is in need of a current diagnosis of the situation and recommendations on how to advance these ambitious goals. The project needed to implement the change is necessary as today’s organizations face a number of challenges resulting from demographics, competition, new technologies, and economic variables (Peus, Frey, Gerkhardt, Fischer, & Traut-Mattausch, 2009). The following proposal will include a diagnosis of the current situation, recommendations, implementation plan, and summary.…

    • 1203 Words
    • 4 Pages
    Powerful Essays
    Read More
  • Good Essays

    Financial Accounting
    • 813 Words
    • 4 Pages

    Financial Accounting

    Item # 3 speaks about the services provided by audit firms to their audit clients,…

    • 813 Words
    • 4 Pages
    Good Essays
    Read More

Related Topics