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    Amazon Risks and Controls and Ethical Behavior

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    TOPIC 1

    What kinds of risks does a firm like Amazon.com face with respect to safeguarding its assets? What types of controls do you think it already has in place to minimize these risks? Go to the firm's website and click on "Investor Relations". You'll be able to find the firm's annual report to help you answer these questions. Are any specific controls mentioned in the annual report? What depreciation method does Amazon use for property and equipment? What is the range of useful lives for buildings and for fixtures and equipment? Do these useful lives make sense? Find the heading Goodwill. What type of an asset is goodwill? Does Amazon write off this asset? Explain what the company does.

    TOPIC 2

    Susan works in a real estate office that is equipped with up-to-date copiers, scanners, and printers. She is frequently the only employee working in the office in the evenings and often has spare time to do personal work. She has begun to use the office equipment for her children's school reports and for her husband's business. Do you think Susan's use of the office equipment is harmless, or is she behaving unethically? Why? If you believe her behavior is unethical, what controls could be in place to prevent it? Have you ever used office resources for personal tasks? Under what conditions could such use of office resources be justified?

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    Solution Preview

    TOPIC 1

    Amazon carries out an evaluation based on the Securities Exchange Act of 1934 on the effectiveness of the design and operation of our disclosure controls and procedures. The principal executive officer and principal financial officer. Management assess its effectiveness of internal controls over financial reporting based on the Internal Control-Integrated Framework (1992). Amazon's management concluded that their internal controls over financial reporting was effective at providing reliable financial reporting and preparation of financial statements. Amazon reported that there were no changes to their internal control over financial reporting that would materially affect the internal control over financial reporting. Amazon states that there are limitations on their controls, because they will make reasonable assurance to achieve the ...

    Solution Summary

    An analysis of risks and controls Amazon has implemented. Also, a review of ethical or unethical behavior at work by employees.