Explore BrainMass
Share

Plain Truth Advertising: Value of the Annual Audit of its Books

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

Plain Truth Adverting employs KPR, a large accounting firm, to audit its books each year. This involves considerable expense for the advertising firm, since sales account managers are very independent and maintain separate record keeping systems. Should the CEO of Plain Truth cancel the audit and rely on a brief year-end summary from each sales account manager? Why?

© BrainMass Inc. brainmass.com October 17, 2018, 3:29 am ad1c9bdddf
https://brainmass.com/business/auditing/plain-truth-advertising-value-annual-audit-books-424355

Solution Preview

Plain Truth Advertising Reporting System

Question: Plain Truth Advertising employs KPR, a large accounting firm, to audit its books
each year. This involves considerable expense for the advertising firm, since sales
account managers are very independent and maintain separate record keeping
systems. Should the CEO of Plain Truth cancel the audit and rely on a brief yearend
summary from each sales account manager? Why?

Although Managerial Accounting does not follow the same legal requirements as Financial
Accounting, Plain Truth should maintain accurate financial records. The CEO should require
accurate reporting, especially on an annual basis, from the account managers.

Managerial Accounting is a tool whereby the CEO can access relevant data he needs to make
tactical and strategic decisions concerning the company. He can only ...

Solution Summary

The solution determines the value of the annual audit of its books.

$2.19
Similar Posting

Business Ethics and Taking Sides

See the attached file.

The Ford Pinto Case in Ch. 12 of Business Ethics and Issue 15: Was Ford to Blame in the Pinto Case? in Ch. 4 of Taking Sides.
? Write a 1,050- to 1,400-word paper in which you address the following:

o If you were involved in the dilemma discussed in the case study, what solution would you recommend? Support your decision with examples and supporting information.

o Explain ways in which external social pressures have influenced your decision.

o There is a term in art known as the period eye, referring to how an image is viewed during and after the time in which it was created. Examine this case with a period eye. Is the solution you formulated the same today as it would have been in 1971, when this case took place? Support your argument.

? Format your paper according to APA standards.
? Create a 5- to 7-slide Microsoft® PowerPoint® presentation summarizing the paper and outlining your decision.

View Full Posting Details