Student Solution

-->

"Education is the most powerful weapon which you can use to change the world”
– Nelson Mandela

1 University

1 Course

2 Subjects

Week 2 Discussion Topic 2

Week 2 Discussion Topic 2

Q Discussion Topic: You are hired as a consultant to review the operations of a small company with 3 locations. The owner has allocated a budget for each location. If the location requires additional funding, the owner usually requests that the manager submit a budget for request for additional funds in the form of an excel spreadsheet. The owner has a bad feeling that 1 of the locations, which has requested funding 3 times more frequently than the other 2, is inflating the budget that he sends over. As a consultant, what steps might you take to review this assumption and to help the owner understand what might be going on? Are there ways to utilize accounting software, such as Excel, to spot any issues in general, or even in the spreadsheet that the owner receives? Be sure to note your source and in-text citations in APA format. Do not forget to make your posts to the other topic this week.

View Related Questions

Solution Preview

As the new manager at an automotive company, I was asked to review the monthly management reports that are presented to the owner each month. Unfortunately, I know that the previous manager would usually approve the reports and returned them immediately without further review. I noticed that the reports do not appear to add up and the controller seems to worry the more time that I spend reviewing them. Even though I feel that there may be some type of deceptive activity I can’t come out and assume, nor make false claims until I take the first step and properly review all the reports. There are ways to utilize accounting software to spot any discrepancies, such as the Beneish Model and Excel.