I actually do not have the book so I am unable to see the case.

Please go to your Senior Seminar in Accounting-Casestextbook. I would like you to go to page 1 in the textbook. Using the information on pages 1-17 in your case notebook, please answer the following questions as it relates to management accounting and certain auditing functions:

Management Issues/Engagement of external auditor: Please give a brief introduction of the company. What does it mean to have a decentralized structure? What are some advantages and disadvantages to this type of management structure? What information would an external auditor look at before engaging this company as a client. What might some specific risks that could be identified by the external auditor within this company?

Marketing Issues/Auditing Revenue Related accounts: Marketing indicates nothing else, on the cost side, can be done. Do you think there are any other short and/or long term options to consider? Is there anything they might be able to do on the revenue side? Price and Mix items-What is meant by an unfavorable mix variance? What is the probable cause of this company's unfavorable mix variance? What are some possible solutions? (Note: think of these marketing issues in terms of price, products, promotion and how they are placed or distributed.) In looking at the revenue side if this company, what elements would the external auditor look at related to revenue issues? (Be sure to include what might be some auditing procedures and test of controls that would be needed as it relates to revenue.)

Accounting Issues/Audit report: Budget Issues -What elements have changed from the original budget? How does this company manage its budgeting process? What elements do you find favorable/unfavorable within this process. Currency Issues - What is the reason for the currency accounting issue in this case? How might this be managed better in the future? R & D Issues - Why is R & D an important consideration for this company? Is this a variable, discretionary fixed or a permanent fixed cost for this company/ (Support your answer.) Do you agree that R & D should automatically be cut by $200,000? Do you agree with the R & D cuts and the reasoning for them, as stated in the case. Inventory Issues- What problems are stated with inventory in this case? Why do you think these problems have occurred? What are some ways to manage this in the short and long term. Other Issues - Looking at Exhibit III, are there any other expenses that need to be considered in this budgeting process? Why? What are the different type of audit reports that could be issued for a publicly traded company? What elements must be present for an unqualified opinion to this company?

Controls: How would you evaluate the overall planning and control system for this company? Why are the internal controls maintained by the company important for an external auditor to evaluate in doing their audit procedures and and making their final report?