Audit & Assurance

Since the business does not have enough funds to continue paying its long-term financial obligations, as repayment of debt Angela has decided to exchange Wheeler’s accounts receivable for an $80,000 corporate note payable by the corporation. The remaining assets will be distributed to Angela and she will assume personal liability for the other accounts payable. Furthermore, Wheeler will distribute the real property to Angela who will assume personal liability for the repayment of the mortgage.

Describe how you would conduct the audit process, incorporating the analytical procedures you would use to investigate selected business transactions?

Since the business does not have enough funds to continue paying its long-term financial obligations, as repayment of debt Angela has decided to exchange Wheeler’s accounts receivable for an $80,000 corporate note payable by the corporation. The remaining assets will be distributed to Angela and she will assume personal liability for the other accounts payable. Furthermore, Wheeler will distribute the real property to Angela, who will assume personal liability for the

RAFT –Task 2 Root Cause Analysis A-1. Sentinel Event A sentinel event is an event that happens expectantly in a healthcare facility that could result possible death, physical or mental injury to patients unrelated to natural causes of the patients illness as defined by Joint Commission (www.joint commission.org). On the afternoon of Thursday, September 14, at approximately 12:30 p.m. a ‘Code Pink’ (child abduction alert) was called when a minor child/patient, Tina, was discharged to the care of her father without the knowledge of her mother with whom she was admitted with. Tina was registered into the hospital system by Katie Jessup, hospital registrar, who entered all proper demographics and all proper insurance information into the

b. If you have no loan or note agreements who is the loan with and what is the relationship for the Loan Payable of $16,208.41 and please explain the terms and conditions of the

There were 3 departments audited for Pain Reassessment compliance over a 12 month period, NIGHTINGALE COMMUNITY HOSPITAL averaged

When a patient checks into Nightingale Community Hospitals they believe the hospital will put there care first and provide quality medicine. Looking at the recent compliance reports there are areas of patient care this hospital needs to improve in. Reporting critical results within 60 minutes, labeling medication containers and reactions with anticoagulation therap.0y are areas that this hospital needs to improve upon. Improving these areas would be just one step toward increasing patient care and satisfaction at this hospital. There are three areas to focus on that Nightingale Community Hospital is not in compliance with according to the Joint Commission standards. These areas are reporting critical results

LCC has conducted an audit of Apollo Shoes, Inc. balance sheets, the retained earnings, cash flows, and other related statements of income for the year ended December 31, 2006/2007. Apollo Shoes Inc management is responsible for maintaining the effective internal controls that goes along with the financial statements and how well the accuracy is going to be. LLC has evaluated the effectiveness of the said controls and with everything to see the relevance in the timing, the substantive in quality, and the comprehensive in nature. The responsibility of our firm is to express an opinion that is supported by audit evidence in

The safe and effective care of our patients depends greatly on the efficacy of our communication methods between staff in the same discipline and interdisciplinary staff. Communication among staff about patient care is so important that it is one of the Joint Commission’s National Patient Safety Goals. Joint Commission has elements of performance that has to be met to remain in compliance with their standards. In the area of pre-procedure verification, Nightingale is in compliance with making sure that the patient has an armband that can be used to match the other items in the procedure area to him or her. We also have a policy that states how verification should happen and at what stages. Even though there is a pre-procedure

• Assess and establish a clinical pathway utilizing InterQual Guidelines with appropriate professional nursing judgment to determine medical necessity of current medical procedures/admissions, accurate length of stay, and anticipated discharge needs while maintaining compliance with ACA and URAC regulations and company standards.

Both Chris and Robin know the collectability of material receivable from Ender Corporation is in doubt and Chris thinks that allowance for Ender receivable should be adjusted. However, their construction company requires a bank loan due to its financial difficulties so Robin is reluctant to adjust the allowance as it might affect the loan they are applying for and if the construction company do not get a clean audit opinion, the bank might also not approve their loan causing them to close down.

We have to pay especial attention to the agreement reached with the former Co-owner of the company, Mr. Verden. This agreement is affecting the cash flow of the company since the interest expenses raises by around $12,000.00 more per year, this together the financial interest of the Metropolitan’s Bank loan

A. Novel Transaction: Since this is a relatively novel approach, and since RhoMed does not have experience with external financing, there are multiple areas under the discretion of Aberlyn’s management, which can ultimately determine Aberlyn’s profitability.

This requires renegotiating borrowing terms with the bank and explaining to National why it will not be receiving the dividend it demands. Alliance’s current borrowing agreement with the bank limits borrowing to three times the previous year’s EBITDA and requires written approval from the bank before Alliance can undertake additional, major capital expenditures. Alliance also agreed to a repayment plan of $4,000,000 per year for five years which would last through 2008. Depreciation in 2005 was $6,439,000, making EBITDA equal to $30,333,000. Three times this amount equates to a 2006 borrowing limit of $90,999,000. This limit is $16,826,000 over Alliance’s projected long-term debt in 2006. Further reasoning for the bank to reconsider its borrowing arrangements with Alliance lies in its liquidity, solvency, and leverage ratios. The 2005 and 2006 current and quick ratios remain the same at 1.73 and 1.51 respectively, meaning short-term liquidity remains the same. The total debt ratio decreases from 0.66 in 2005 to 0.63 in 2006. The ratio of long-term debt to current assets decreases from 1.81 in 2005 to 1.77 in 2006. Alliance’s 2006 cash reserves are able to cover 75% of the interest, up from 73% in 2005. Interest is covered 3.67 times by EBIT in 2006, which is higher than all other years with the exception of 2005. Debt compared to prior year EBITDA has decreased from 3.56 in 2003 to 2.45 in 2006. These ratios prove to the bank that

| * David should keep a straightforward and honest relationship with MAL. * David integrity will be compromised if these errors are discovered.