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Pages:
6 pages/≈1650 words
Sources:
6 Sources
Style:
APA
Subject:
Accounting, Finance, SPSS
Type:
Case Study
Language:
English (U.S.)
Document:
MS Word
Date:
Total cost:
$ 31.59
Topic:

Eastman Kodak

Case Study Instructions:
1. evaluate the current financial condition of eastman kodak based on its most recent quarterly report. based on your evaluation discuss the most significant red flags for its publoic accounting firm to consider. 2. assume you are the PricewaterhouseCoopers audit engagement partner and have assessed Kodak as a high risk client. Explain the modification you would make to the audit engagement procedures to minimize any potential liability of the firm. 3. create an argument to the Kodak shareholders taht despite the long relationship between Kodak and Pricewaterhouse, the publix accounting firm maintains it professional independence. 4. in audits of high-risk clients, determine which requirements in the AICPA's Code of Professional conduct are most likely to be breached by the auditors. Provide your rationale. 5. analyze the risk of financial fraud at Kodak and how it is most likely to be committed. 6. based on your analysis of the financial fraud risk areas, discuss the internal controls that should be implemented. 7. given Kodak filing bankruptcy, discuss the fiduciary responsibility of the audit committee and board of directors.
Case Study Sample Content Preview:
Financial Analysis Report Name: Course: Professor Name: (August 10, 2012) Evaluation The current quarterly report for Eastman Kodak is a reflection of the business activities that Kodak and her subsidiary companies are involved from January 1, 2011 to December 31, 2011. Previous reports have not been dealing on a worldwide performance data basis report unlike the recent report (Avery, 2012). However, even though at times this was not possible, there were no exceptions that were noticed in the previous reports for Kodak. A closer look at this report shows that the data for leased facilities were indicated but there was the exclusion of the data from the outsourced operations (Anderson, 2012). The cash burn has been a cause of concern for Kodak Company in the last couple of years as seen by the financial statements. The internal cash flows are negative indicating that this company has a financial problem. The internal cash flow includes the operating costs, the investing sources of the company and the way this company uses the cash (Arnold, 2012). The strategies that the company aimed at included the funding of various operations so that the licensing strategy of the IP would be successful. This would be possible through sale of the company’s assets. Thus in order to be successful in the IP portfolio strategy the company aimed at raising over $200million and have intellectual licensing transactions raising about $250 million and $350million (Anderson, 2012). Consequently, a closer look at the report it can be realized that the company focused on clearing their work on the goals of sustainability they had in place prior to the 2011 quarterly report. In order to compete in the business sector they had to come up with new programs would help in boosting its business in the regions where it operates. Thus after the quarterly report on 2011, Kodak was more sustainable and looked to take advantage of their customer’s preference of the economic, environmental...
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