ADMS 4515 Lecture Notes - Lecture 8: Ant-Zen, Financial Statement, Stockout
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Due diligence: process of confirming or disconfirming the business reasons for a transaction. Operational performance (cid:862)proper prior pla(cid:374)(cid:374)i(cid:374)g preve(cid:374)ts poor perfor(cid:373)a(cid:374)ce(cid:863) Purpose of engagement = in-depth look at internal controls, recent event, industry/trend change. Determine the effectiveness of, assess compliance with, evaluate the design/adequacy. When planning, one must know the relevant processes. Operational objectives define why the process exist. ~ focus on accuracy, timeliness, completeness or control attributes. Hr risk (failure to recruit, develop and maintain) Compare risks to managements risk tolerance and businesses overall risk appetite. Tests are conducted, gathers evidence to support ia conclusions. Cause real or potential adverse effects of the gap. Effect underlying reasons in the gap which lead to the adverse consequences. (cid:373)a(cid:396)ket (cid:396)esea(cid:396)(cid:272)h, p(cid:396)i(cid:272)i(cid:374)g, p(cid:396)o(cid:373)otio(cid:374), (cid:272)usto(cid:373)e(cid:396) se(cid:396)vi(cid:272)e, st(cid:396)ateg(cid:455) develop(cid:373)e(cid:374)t. Loss of sales a(cid:374)d (cid:373)a(cid:396)ket sha(cid:396)e due to i(cid:374)(cid:272)o(cid:373)pete(cid:374)t o(cid:396) i(cid:374)effe(cid:272)tive (cid:373)a(cid:396)keti(cid:374)g effo(cid:396)ts. Loss of (cid:272)o(cid:373)petitive adva(cid:374)tage (cid:272)ause filed to (cid:396)etai(cid:374) se(cid:374)sitive i(cid:374)fo(cid:396)(cid:373)atio(cid:374) E(cid:396)osio(cid:374) of u(cid:374)it (cid:272)o(cid:374)t(cid:396)i(cid:271)utio(cid:374) (cid:373)a(cid:396)gi(cid:374)s (cid:271)e(cid:272)ause of i(cid:374)ade(cid:395)uate p(cid:396)i(cid:272)i(cid:374)g or cost management.