create well thought out question in accounting, assignment help

Below are 2 topics that need 2 well thought out questions created on this topic. each topic has 2 students creating their question please respond 2 both questions on each topic and create 1 question on both topics

Discussion: Every day there are stories about businesses and nonprofits that discovered an employee was stealing funds.

Locate a news story from your town or state that reports on this occurring

Post a link to the article

Summarize the article in your own words

Relate to your study of internal control

Where did the system this organization had in place fail?

What would be your recommendation to help them prevent this from occurring again?

Be sure to incorporate internal control policies that you have learned about in this week’s readings


Younes Elkhalloufi in response to this Topic

Lindsay Kneff, a former manager in Realty Company who was in charge of the processing commissions and accounts payable for Rose & Womble’s Virginia Beach office, is facing jail because she was indicted for several mail frauds. She was allegedly altering money orders to her own personal interest, and process unauthorized wire transfers to her own account, leading to $255,147 loss for the company.
Rose & Womble’s a publicly traded company and must have internal control procedures put in place, and as a manager she was supposed to help implementing those policies, instead she took advantage of her authority to generate such transactions. It is true that she was caught through a detective internal control procedures, but I suggest that the preventive control policies should be reformed and well implemented as well as conducting more internal audits.…

post 2

Jacqueline Digangi in response to this Topic

I have a story of a company I used to work for that dealt with this. A few years ago I had worked for a chain pharmacy and one of the stores I had worked for had a pharmacist that was stealing medication off of the shelf. He had been doing this for years and the only reason it was brought to the attention of other people was when a technician had mentioned it to the pharmacist in charge. All the pharmacist in charge had to do was grab the telson that collected inventory information, scan the bottle and found the inventory for the pills were off by thousands. There actually was a system in place for this, and all that would have to have been done would be the annual inventory that counted the pills to find the huge discrepancy in them. It should have been done sooner with the daily “cycle counts” which is pretty much an electronic perpetual inventory system, but there was no one that was doing them and there for this felony wasn’t caught until much later than it should have been.

topic 2

Discussion: You have learned how to record the accounting entries necessary for bonds. For companies who issue debt through bonds, they often have a bond rating associated with them. Do some research on bond ratings.

What types of ratings can a bond have?

Who rates the bonds?

What do they look for when determining the rating to place on a company’s bonds?

What impact does it have for the issuer of the bond?

Be sure to answer these questions and share your findings on bond ratings in your post this week

Post an original response to the discussion question by Tuesday at 11:59 p.m. ET.

post 1

Benjamin Ogle in response to this Topic

Higher rated bonds, known as investment grade bonds, are seen as safer and more stable investments that are tied to corporations or government entities that have a positive outlook. Investment grade bonds contain “AAA” to “BBB-“ ratings and will usually see bond yields increase as ratings decrease. Most of the most common “AAA” bond securities are in U.S. Treasury Bonds. Most bonds carry a rating provided by one of the three independent rating agencies, which are Standard & Poor’s, Moody’s, and Fitch. From U.S. Treasuries to international corporations, these agencies conduct a thorough financial analysis of the entity that is issuing the bond. Based on each rating agency’s individually set criteria, analysts determine the entity’s ability to pay their bills and remain liquid and assign a credit rating to the bond. The impact of a rating could be potentially negative for a long term investor, such as what happened in 2008, when Moody’s downgraded mortgage backed securities by 83 percent, when a year prior they were given a rating of “AAA.”

post 2

Adam Adair in response to this Topic

I’m not entirely sure what all types of bond ratings there are since it appears every rating agency has a proprietary and completely arbitrary rating system. A,B,C, AA, BB, CC, AAA, BBB, CCC, Ba, etc, etc, etc, add in some + and -. It really might as well be trying to read hieroglyphics. Unless you are a professional stock trader, it means nothing. There are probably an incalculable amount of ratings and honestly all of them are absolutely worthless. Case in point, these are the same rating agencies (S&P, Moody’s, Fitch) that gave the junk bonds AAA ratings before the sub prime housing collapse. So really, take these bond ratings with a grain of salt since they are really really easily manipulated and the integrity of these ratings houses are suspect at best. As far as what these rating do for the issuer, a better rating theoretically means its easier for them to sell off debt to investors because they think that a better rating means a lesser chance of default. Higher rating is supposed to mean that it is a safer bet, but once again all I can say is “2008”.