Audit of Aberdeen Leaders Limited - Paper Example

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George Washington University
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During the financial year 2016, the Sidney Department of Audits and Accounts (DOAA) managed to carry out an independent financial audit of ALL. It is a government and registered agency that serves the interests of the public in ensuring accountability for the resources and fiances that are used by firms. It operates under the Australian Department of Education Audit Division. The department provides oversight on the institution operations in the event of carrying out its core objectives, auditing being one of the primary ones. The firm is bestowed with the responsibility of ensuring that the institutions that are private, as well as those that are public, are transparent in matters of use of the company resources among many other essential things that are within its jurisdiction. DOAA has in the recent times carried out auditing operations that concerned equalization of individual and property taxes in the nation and its work has been rated excellent and on carrying out this audit, it put into consideration significant factors that appertain its functions into ensuring that the firm does not infringe on the rights of the public, neither of the federal state, to whom it is answerable in carrying out the GIS. An institution worth the DOAA ranking, is bestowed amongst people and their property and any slight oversight of its objectives may result into to deformation of its proper name in business as well as its ways of operation when the public lose trust in the company operations incorporation to its earlier well-performed services as they would be deemed biased and linked fraud. It can then be subjected to investigation.

The DOAA as an agency managed to access the books of accounts for the ALL and by use of the reliable tools for determination of the company cash outflows and cash inflows managed to bring to the public the required information which is to publish for the public to have their say on. The books of the account s like the balance sheet for the financial year 2015, the statement of accounts, the trading, profit and loss account, as well as the journals, were put under scrutiny after they were presented by the responsible personnel in the federal government for a check-up.

The operational accounts of the firm were not left out for they also helped DOAA to come up apparently with the institution objectives as set out from the start of the financial and managed to keep track of the expected expenditures and goals to be met later by the County Government School District (Anaf, Baum, Fisher, Harris, & Friel,2017).The institution of transparency and accountability also managed to access the invoices to the tenders and purchase that the county government undertake to ascertain faults. The suppliers of the organization were even subject to the credible process for there was the need to ensure that they were qualified and their winning of the tenders was valid and was not based on some affiliations or corruption which had been highlighted to be penetrating the school. The various departments entitled with the handling of cash were checked and their quick books filtered by the auditing firm software. DOAA also put into consideration one aspect about the personnel in the institution as to ascertain whether the mode of employment of the personnel and other staff members was valid as done in the right way possible according to the institution constitution and the federal government laws that govern the employment and code of ethics that appertains the hiring of staff members in any public institution.

The main reason for carrying out the audit was to ensure transparency and accountability in the process of operation of the GIS as part of the institution in the county. There had been recent uproars in various agencies across the province that depicted cases of some corruption as well embezzlement of the public funds that called for the Country Government to call for auditing to ascertain the state of the matter (Anaf, Baum, Fisher, Harris, & Friel, 2017). It is also called for by the law that auditing is carried out every financial year to ensure that funds which form a significant framework in the misappropriation of the resources by management and their affiliates are controlled to the latter.

The law calls for accountability for every money that is allocated to the institutions whether they are answerable to the national government or the federal government. It is also the right of any citizen to be informed of the state of finance of the institutions and companies that they subscribe to either as members or as investors, or say, shareholders. In any case, organizations ought to fully support the move by the county government to breed a community that is conversant with what our laws as a nation say about corruption and embezzlement of funds.

The DOAA as an agency recommended that the GISto put in place operational budget accounts that run in tandem with the school, finances. It also indicated that the school should come up with more feasible objectives that do not need to attract investments from outside the school parameters. The audit report also directed the management on the use of the school finances in the next coming financial year to avoid overlaps.

It was recommended that the school comes up with a transparent budget for the coming fiscal years to ensure that in future there is are limited cases of missing finances. The school was also advised to following the man objectives of the college and avoids getting into investment areas as that is not their primary objective as a school. They should be focused on providing education and learning environment to the students. It is uncalled for the school to spend money allocated to education in other business activities (Anaf, Baum, Fisher, Harris, & Friel, 2017). This was noted by the school, and the federal government officials also emphasized on the same.

Any transgression of the set standards by the laws that govern the school will be a breach of contract, and the school management would be subject to sue in the court of law to avoid cases of misappropriated expenditures in the future. The organization was however cheered on its improved spending in the financial year 2015 for it registered superb financial management skills since their record was in line with the auditor's findings. The auditor recommends that future activities by the school would be run well and by the laws if minor incidences were corrected.

Stock Calculations

Two-Stage Dividend Discount Model

CAPM Rf 2.79% 10 Year Australian Bond Rate

MRP 6.50% Given

Beta 0.7 Ke 7.3% General Mills (GIS) D0 = 0.72gS = 8%Valuation Two-Stage Dividend Discount Model CAPM(Capital Asset Pricing Model) Rf(Risk-free rate ) 2.79% 10 Year Australian Bond Rate MRP 6.50% Given Beta 0.7 Ke 7.3% General Mills (GIS) D0 = 0.72 gS = 8% for next five years gL = 2%thereafter YTM = 2.79%Risk Prem. = 7%Req. Return = 7.34%Time 0 1 2 3 4 5 Dividend 0.78 0.84 0.91 0.98 1.06 Terminal Value 18.39 (Gordon Growth Model) Total Cash Flow 0.78 0.84 0.91 0.98 19.44 Present Value 0.72 0.73 0.73 0.74 13.65 Intrinsic Value 16.57 Sensitivity Analysis Intrinsic gL Value gS = 16.57 16.57 9.5% 10.0% 10.5% 11.0% 11.5% 12.0% 12.5% 6.0% 62.39 6.0% 66.74 68.25 69.78 71.34 72.92 74.54 76.18 6.5% 97.79 6.5% 104.67 107.05 109.47 111.93 114.44 116.99 119.59 7.0% 237.31 7.0% 254.15 259.97 265.89 271.93 278.07 284.33 290.70 7.5% -495.14 7.5% -530.60 -542.86 -555.34 -568.06 -581.00 -594.18 -607.60 8.0% -117.82 8.0% -126.34 -129.28 -132.28 -135.34 -138.45 -141.61 -144.84 8.5% -65.77 8.5% -70.58 -72.24 -73.93 -75.65 -77.41 -79.19 -81.01 9.0% -45.08 9.0% -48.41 -49.56 -50.73 -51.92 -53.14 -54.37 -55.63 9.5% -33.97 9.5% -36.50 -37.38 -38.27 -39.18 -40.10 -41.04 -42.00 10.0% -27.03 10.0% -29.07 -29.77 -30.49 -31.22 -31.97 -32.73 -33.50 10.5% -22.29 10.5% -23.99 -24.58 -25.18 -25.79 -26.41 -27.04 -27.69 Bar Graph for sensitivity analysis 1333504762500 Two-Stage Dividend Discount Model CAPM Rf 2.79% 10 Year Australian Bond Rate MRP 6.50% Given Beta 0.7 Ke 7.3% General Mills (GIS) D0 = 0.72 gS = 10% assume the historical dividend growth rate gL = 2% thereafter YTM = 2.79% Risk Prem. = 7% Req. Return = 7.34% Time 0 1 2 3 4 5 Dividend 0.79 0.87 0.96 1.05 1.16 Terminal Value 20.15 (Gordon Growth Model)

Total Cash Flow 0.79 0.87 0.96 1.05 21.31 Present Value 0.74 0.76 0.77 0.79 14.96 Intrinsic Value 18.02 Stock valuation needs to run at a constant rate for the next five years according to the question. This is an ideal situation and so in the real world stock valuation scheme; it is prudent noting that stock valuations are prone to regular and unpredicted changes. The inflation rate that in most cases have whooping impacts on the stock price either affects the stock prices positively or negatively. It all depends on the way the inflation is impacting on the general economy for the country of choice (Anaf, Baum, Fisher, Harris, & Friel, 2017). The 6% growth rate would be real with time though courtesy of inflation. Inflation would influence the change in the price index which in turn affects the nominal value of the available assets for companies that are shortlisted on the national exchange market. The domestic stock exchange market would then call for new quotations of the price of shares for the companies that are in correspondence with the changes made to the standard fare of shares by the inflationary rate in the economy.

The article is an analysis of the organizational and climate culture of businesses and business premises regarding statistical data gathered, analyzed and presented by the article researchers. The information contained in the article is from empirical data which the researchers sought to obtain from either the perspective of firsthand details or secondary means of data from sources in linkage to the topic. The suppliers of the institution were also subject to the credible process for there was the need to ensure that they were qualified and their winning of the tenders was valid and was not based on some affiliations or corruption which had been highlighted to be penetrating the school. The various departments entitled with the handling of cash were checked and their quick books filtered by the auditing firm software.

The data obtained have been subjected to analysis by use of ANOVA. It is evident from the article that the field of coverage more specifically one on climate culture for corporate business has not had a good number of similar researches. It is thus difficult for the article researchers to find secondary information. It is in a way challenging to disapprove lemma that comes up in the article about the topic of study. It is important to note that the article in any sense lacks the evidence for approval in the categories of the Cochrane reviews and for such makes the first section that has broken the ground for the ideas so far presented.

Methods of Data Analysis

The data presented on the subject to quantitative analysis failed some statistical tests for instance correlation. The article is therefore attributed more to the individual perceptions, and in the event of validating the report, there is the need for other researchers in relation to the topic organizational and climate culture to aid in contributing more information to the world about the events and activities both positive and negative in the corporate and climate domain.

Corporate Bond Analysis

Corporate culture and ensuring business have experienced various cases of conflicts of interest between the organizational heads and the climate. The article puts out clear that climate culture has a significant impact on the business that is in operation within its borders. Who are w...

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