DeVry University Audit and Accounting Questions

Need help with my Writing question – I’m studying for my class.

Chapter 10: Exercise 15 page 10-29

Auburn Furniture Company makes a variety of wood furniture for the home and office. The company uses a standard costing system for its manufacturing costs. During a recent unexpected surge in demand, the company decided to use temporary employees from a local employment agency. The company used the temporary employees for two months, after which managers stopped using them. There were many complaints from production foremen that the temporary employees were not very efficient. Additionally, customer service staff noted that during the two month time period when the temporary employees were working there was an increase in the number of units that had to be reworked and the number of units being returned by customers. Management is considering filing a lawsuit against the temporary employment company for providing workers who did not perform at the level of regular employees as had been promised by the employment company. Before filing the lawsuit, management would like to have some information about the possible damages in the case.

What accounting and other information would you look at to assist management in evaluating possible damages?

Chapter 11: Exercise 14 page 11-23

A whistle-blower in her allegations made in a qui tam suit, alleged that her former employer fired her because she told the company that it was “padding the bills” to the federal government for the cost-plus contract it had to build ejection seats for fighter aircraft. She alleges that the company overcharged for materials, ran up labor costs, threw “all kinds of stuff in overhead,” and illegally plugged corporate administrative costs into the contract billings. As the forensic accountant hired by the U.S. Justice Department to litigate this case, answer the following:

a. What documents will you seek during discovery to address the whistle-blower’s allegations?

b. What will you be looking for in each of the requested documents?

c. What will be the basis/foundation for the opinions you will provide in this case?

d. How will you utilize the whistle blower in pursuing your opinions in this case?

Chapter 12: Exercise 30 page 12-21

Jimmy Jones was on his way to work when he was hit broadside by a truck that ran a red light. Jimmy suffered twenty seven broken bones, numerous lacerations, and a variety of other medical problems. Mr. Jones was in the hospital for two months and he has been recovering at home for the past four months. He is certain that he will never be able to work again. At the time of the accident, Mr. Jones was 35 years old. The insurance company for the trucking company that hit Jimmy Jones is not sure that he is completely disabled and they intend to contest that issue. You have been hired as a financial expert witness by the attorney of Jimmy Jones to assist in this case. You have visited Jimmy several times and you are certain he is never going to return to his pre-accident health.

What is your role in supporting Jimmy’s disability claim?

What are the possible/probable components of Jimmy’s economic damage claim?

What information will you seek from Jimmy/his lawyer and what information/research will you pursue on your own?

What information, if any, will you seek from Jimmy’s attorney about the nature and severity of Jimmy’s injuries and the extent of his disability?