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California Crunch Company Result Analysis

Valery Salazar

Keiser University

Auditing 1

Dr. Jennifer Bolden

March 25, 2023

Results Analysis and Internal Controls Recommendation

Introduction

Comparing the Three Gross Pay Payment Periods for Employee ID 217, The investigation concluded that the payment was legitimate since the employer accurately reflected the employee's pay rate and working hours on the pay stub. Yet, it is clear that the identical payroll checks as specified on the payroll slip were issued after reviewing the identical payroll checks, tax, or deductions (Conroy et al. 2022). For example, on November 2, 2018, the assumption was 0.2163 for the base pay rate of $23.91, and the reduction was 0.3199 for the base pay rate of $24.90 on the same day. Dates 14 December 2018 are another example, with pay rates of 23.91 and 24.90, respectively, using presumptions of 0.2163 and 0.3199. As just one worker is represented in the pay stub, the analysis table contains no information on former workers who were let go. Employment ID 217's gross compensation is correct. The paycheck is proof of employment by detailing the employee's wages, deductions, and hours worked. The employee has proof that identical computations and deductions were made from both payroll checks. For instance, on November 2, 2018, 0.2163 was subtracted from the 23.91 hourly rates and 0.3199 from the 24.90 hourly rates. On the same day in 2018, deductions of 0.2163 were taken from the 23.91 hourly rates, and 0.3199 were taken from the 24.90 hourly rates. This investigation proves the gross salary associated with employee ID 217 is correct. As just one worker is shown on the pay stub, the analysis also confirms that there were no layoffs. This further verifies that the employee's gross salary is accurate. In addition, the pay period and rate shown on the pay stub were adhered to correctly by the employer. This shows that the company has been respectful of the employee's rights and has been meeting its commitments (Bussoli et al., 2023)

A further investigation into the issue of unpaid workers and their deductions was conducted. Workers 212, 333, 396, and 885 don't have any means of support or motivation. There was a lot of redundancy in the payroll system, which made it difficult to manage. An employee with the ID number 212 has been copied five times, and so have the ID numbers 333, 396, and 885. There was also no deception since there was. In the second round of calculations, workers 212, 333, 396, and 885 were found to be missing income and deductions. Research revealed that worker 212 was mentioned five times, whereas the other three were only listed once. Hence, a misunderstanding between the payroll office and the work led to this double payment. Throughout the investigation, further payroll-related concerns surfaced. For instance, due to excessive duplication, the payroll was too high. Some information gathered was also flawed or incomplete; for example, certain employee IDs and related documents were left out. Paychecks and deductions could have been off as a result. The study, fortunately, turned up no signs of fraud. There was a complete and accurate tally of all workers' earnings and deductions. In addition, workers whose paychecks lacked necessary information about income and deductions were not compensated with extra money. Several problems in the payroll section were uncovered during the investigation.

Conclusion and Recommendation.

The examination of the California Crunch Company's owner found that the company lacked adequate internal controls. The company's financial transactions were not being recorded or accounted for by the proprietor. The owner also wasn't keeping a close enough eye on the business's finances to avoid fraud. The owner also lacked internal audits and reviews and had sloppy accounting procedures.

To solve these problems, I suggest the owner set up some internal controls. Establishing a governing body or an independent auditor to oversee financial matters is an important part of this system. The proprietor should also set up methods for monitoring financial activity and conducting internal audits and reviews. The proprietor should also establish measures to identify and prevent fraud, such as a fraud risk assessment program. Lastly, the owner is responsible for ensuring that all accounting procedures are accurate and in line with all relevant legislation. The owner will better handle the company's finances thanks to these newly implemented internal controls.

References

Bussoli, C., Giannotti, C., Marino, F., & Maruotti, A. (2023). Trade credit in Europe: Financial constraint and substitution effect in crisis times.  European Financial Management,  29(1), 327-348. https://onlinelibrary.wiley.com/doi/abs/10.1111/eufm.12362

Conroy, M., Fitzhenry, S., Seiberlich, K., Burke, T., & Nix, N. (2022). Case 7: Case Competition–Alphabet Audit.  Comprehensive Analysis of Financial Accounting Through Series of Case Studies, 45. https://egrove.olemiss.edu/cgi/viewcontent.cgi?article=3566&context=hon_thesis#page=50

Tatijana Jones

APUS

March 19 2023

Conclusion

Summarily, procrastination is a behavior synonymous not only with students but also with the general population. A considerable group of the population in various fields and at varied stages of their lives often procrastinate. However, for students, it is taken as something more serious since it affects their academics. While it can be said that it is impossible to always be punctual and never delay or postpone doing some tasks, the major problem arises when procrastination becomes habitual. Habitual tendencies tend to have a compounding effect. At the onset, the impact might seem minimal, however, with time, the magnitude of the negative impact increases. In an academic setting, which is one of the key areas of a student's daily life, habitual procrastination may result in the pilling of work. In addition, frequent postponing of tasks or delay in doing one’s academic tasks may result in dwindling grades and generally poor academic performance due to accrued lateness penalties and inability to complete some tasks. Given the negative impacts of procrastination more so for students, students should try as much as possible not to make it something habitual. A student should always strive to be punctual and in the case they have to postpone or delay a task, they ought to always get back to it immediately they are able to do so.

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Tatijana Jones

UNIVERSITY STUDENTS AND PROCRASTINATION

INTRODUCTION

Procrastination is a familiar enemy to many university students, lurking in the shadows and sabotaging their academic success. It's a problem that can affect students from all walks of life, regardless of their background, major, or study habits. Despite knowing the consequences of procrastinating, such as missed deadlines, poor grades, and increased stress, students often put off assignments until the last minute. But why do they procrastinate in the first place? The answer lies in a complex mix of factors. To start with, the mounting stress of academic expectations can be overwhelming. Many students feel pressure to succeed, whether to maintain a scholarship, please their parents, or prove their worth. This pressure can lead to anxiety and self-doubt, making it difficult to focus on the task. Students may turn to procrastination as a coping mechanism, avoiding the source of their stress and delaying the inevitable. Secondly, a lack of motivation can also contribute to procrastination. If students feel they need to be more invested in the assignment or see little value in it, they may be able to find the necessary energy and enthusiasm to start working on it (Wu & He, 2022). Instead, they may distract themselves with social media, video games, or other forms of entertainment. Finally, difficulty managing time effectively is another common cause of procrastination. University students often juggle multiple commitments, from classes to extracurricular activities to part-time jobs. Balancing these competing demands can be challenging, especially when deadlines loom large (Pinke, Pawera, & Karlík, 2021). Without a clear plan for prioritizing and completing tasks, students may fall into the trap of procrastination. This paper illustrates that a complex mix of factors, including academic stress, lack of motivation, and difficulty managing time effectively, cause procrastination among university students.

References

Pinke, L., Pawera, R., & Karlík, O. (2021). Time Management and Procrastination. In  Developments in Information & Knowledge Management for Business Applications: Volume 3 (pp. 649-730). Cham: Springer International Publishing.

Wu, W., & He, Q. (2022). The roles of moral disengagement and learned helplessness towards international postgraduate students’ academic procrastination.  Psychology Research and Behavior Management, 1085-1104.

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UNIVERSITY STUDENTS AND PROCRASTINATION 5

Tatijana Jones

APUS

March 5, 2023

University Students and Procrastination

Introduction

Procrastination is a common issue among university students, and it is often caused by a combination of stress, lack of motivation, and difficulty managing time. Many university students experience high-stress levels, striving to meet academic expectations and succeed in their future careers (Rozental et al., 2022). The pressure to excel can be overwhelming, leading to procrastination as a coping mechanism. This can result in students delaying their work until the last minute, negatively impacting their work quality and academic performance.

Thesis statement: University students often procrastinate due to a combination of stress, lack of motivation, and difficulty managing time. This thesis statement outlines the main causes of procrastination among university students.

There is a lot of pressure on college students to do well, which can lead to delays in getting work done. University students may feel stressed by the demands of succeeding academically, finding internships or research opportunities, and keeping up with friends and family. For example, the American College Health Association revealed that 87 percent of students had been overwhelmed by their workload, and 64 percent had suffered excessive worry in the previous year (Rozental et al., 2022). Under such circumstances, students could think putting off their work will let them relax for a while. Yet, this can lead to a vicious cycle of procrastination, which in turn can amplify existing stress and anxiety and deleterious affect the student's academic performance and general health. In addition to stress, university students may also struggle with motivation, leading to procrastination. With myriad distractions such as social media, video games, and other leisure activities, it can be challenging for students to maintain focus and motivation to complete their assignments. As a result, they may put off their work until the deadline is imminent, causing unnecessary stress and anxiety.

Procrastination is a common problem among college students because they need more enthusiasm to finish their work. Keeping themselves motivated through completing a lengthy assignment such as a research paper is a common challenge among students. Particularly when they are not invested in the material or find the assignment to be too difficult. A student who is not very interested in writing might, for instance, put off writing an essay until the last minute (Rozental et al., 2022). Students may also need more motivation if they cannot identify how the task relates to their future plans or interests. A student in this situation could seek out ways to make the assignment more interesting, such as by dividing it into more digestible chunks or by enlisting the help of teachers or classmates.

Procrastination is common among college students because of difficulties with time management and setting priorities. The many demands of college life, such as classes, extracurriculars, and social events, can make time management difficult for students. Students who need to improve at managing their time may put off doing the more challenging assignments later in the semester. Sometimes, students would rather spend time with their friends and watch a movie than do an assignment that is due the next day. Students may find it helpful to make a timetable or use time management tools like calendars or planners to help them better organize their time and focus on what's most important (Koppenborg & Klingsieck, 2022). Universities can offer resources such as time management workshops and counseling services to help students cope with stress and improve motivation.

In conclusion, university students encounter a number of issues that can cause them to put things off, including stress, a lack of desire, and ineffective time management. Students must comprehend the causes of procrastination to build effective coping mechanisms. Students can succeed in their academic endeavors while maintaining their well-being by asking for help from peers, professors, and counseling services and learning efficient time management techniques.

References

Koppenborg, M., & Klingsieck, K. B. (2022). Social factors of procrastination: Group work can reduce procrastination among students. Social Psychology of Education, 25(1), 249–274. https://doi.org/10.1007/s11218-021-09682-3

Rozental, A., Forsström, D., Hussoon, A., & Klingsieck, K. B. (2022). Procrastination among university students: Differentiating severe cases in need of support from less severe cases. Frontiers in Psychology, 13. https://doi.org/10.3389/fpsyg.2022.783570

Rozental, A., Forsström, D., Hussoon, A., & Klingsieck, K. B. (2022). Procrastination among university students: Differentiating severe cases in need of support from less severe cases. Frontiers in Psychology, 13. https://doi.org/10.3389/fpsyg.2022.783570

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California Crunch Company Financial and Ratio Analysis

Valery Salazar

Keiser University

Auditing 1

 Dr. Jennifer Bolden

March 19, 2023

California Crunch Company Financial and Ratio Analysis

Introduction

For the California Crunch Company's financial statements, revenue, COGs, and operational expenditures may all be compared from 2017 to 2018 using a horizontal analysis. Just dividing sales revenue by net sales yields the gross profit margin. Additionally, the current and debt-to-equity ratios can be calculated to assess the company's liquidity and solvency (Conroy et al., 2022).

Performing preliminary analysis and establishing a key expectation

In Excel, I compared 2017 and 2018's net sales and COGs utilizing a horizontal analysis to evaluate financial reports. Although business's net sales increased by 4%, the COGs rose by 3%, showing that it has to lower its product price to enhance its gross profit margin.

I analyzed the financial statements by comparing 2017 and 2018 performance side-by-side. The study displays the year-over-year percentage change within every line item. I also calculated the gross and net profit margin ratios (Bussoli et al., 2023). The results are as follows:

Horizontal Analysis:

· Net Sales increased by 4%

· The cost of Goods Sold increased by 3%

· Gross Margin increased by 5%

· Operating Expenses increased by 7%

· Operating Income increased by 2%

· Interest Expenses increased by 1%

· Other Income increased by 3%

· The income Tax filing threshold increased by 2%

· Net Income increased by 2%

Gross Profit Margin:

2017: $4,377,300 / $7,998,832 = 54.73%

2018: $4,607,919 / $8,353,542 = 55.11%

Net Profit Margin:

2017: $891,862 / $7,998,832 = 11.15%

2018: $909,265 / $8,353,542 = 10.89%

For the payroll analysis in IDEA, I performed tests to check for duplicate employee IDs, same pay periods and missing employee information. I also calculated the average hourly wage and overtime hours for each employee. These tests ensure that the payroll data is accurate and complete.

· Explanation of analyses:

· Horizontal analysis: This analysis helps to identify trends and changes in the financial statements from year to year.

· Gross profit margin: After subtracting the price of products sold from total sales, this ratio indicates the proportion of revenue retained as profit. If the ratio is greater, the business is doing well.

· Net profit margin: Using this metric, you can see what proportion of revenues remain after covering all costs. In general, a greater ratio suggests more profitable operations.

· Payroll tests: These tests help to ensure the accuracy and completeness of the payroll data, which is essential for calculating employee compensation and taxes. The average hourly wage and overtime hours provide additional insights into employee compensation.

The income statement should be used to develop expectations based on past and present events, trends, and data. Data analytics should be used once a month to assess progress on monthly goals such as wage rise, retention, and recruitment. Find out the bonus structure and if it has changed from last year's payout. You should evaluate any increases or decreases in health insurance or government taxes. Using this initial information, check in with higher-ups about any happenings that might impact payroll costs.

Examine accurate information from the preceding five pay weeks.

Third, the study of the gross pay of occupation ID 217 across many pay periods concluded that the payment is lawful since the employer possesses accurate information about the employee's pay rate and working hours. However, the identical payroll checks as specified on the payroll slip were issued after reviewing the identical payroll checks, tax, or deductions. For instance, on November 2, 2018, the deductions and assumptions for different pay rates differed as follows: for pay rate 23.91, the assumptions were 0.2163, and for pay rate 24.90, the deductions were 0.3199. For instance, on the 14th of December, 2018, the pay rate was 23.91, and the assumptions were 0.2163 and 0.3199. Moreover, since there is only one worker on the pay slip provided, the analysis table does not include any dismissed workers.

Using the last five pay periods, inspect the actual data.

Carry out IPE (Details Available by Entity) Testing, and make sure the HR Masterfile is full. This may be done by comparing information from the most recent pay period with previous pay periods and verifying that all required payments have been made to the government. Verify employee agreements and validate payroll data using a sample strategy. Investigate the breakdown of your take-home earnings for any red flags. Using data analytics, double-check that all names and addresses on the HR Masterfile and the payroll file are correct. Detailed analytics should be performed on each payroll file to investigate each line item.

Three, examine the data to see whether it confirms your initial hypothesis, and four, find out why you got different results.

Compare the outcomes of the actual audit with your initial assumptions and analysis. Examine any differences or deviations to see whether they are implausible and if so, reach out to upper management for clarification. Employees who were not paid or had deductions taken out were identified in a second study. Employees 212, 333, 396, and 885 are only four examples of possible low-income/low-motivation workers. There was much redundancy in the payroll system, which made it difficult to manage (Iacuzzi, 2022). The employee with ID 212 has been copied five times, and so have IDs 333, 396, and 885.

Conclusion

As part of the payroll audit, I utilized IDEA to run a test on the payroll file, including employee wages, to look for discrepancies and signs of fraud. Employee wage data did not conform to the predicted pattern, as shown by the test findings; more research may be required to verify the veracity of the payroll records. I also ensured there were no overpayments or other payroll mistakes by verifying that there were no duplicate entries in the employee ID field. There were no occurrences of the same employee ID in the results list. In the end, these audits assist the firm in seeing where it stands financially and verifying that its payroll data is correct.

References

Bussoli, C., Giannotti, C., Marino, F., & Maruotti, A. (2023). Trade credit in Europe: Financial constraint and substitution effect in crisis times.  European Financial Management,  29(1), 327-348. https://onlinelibrary.wiley.com/doi/abs/10.1111/eufm.12362

Conroy, M., Fitzhenry, S., Seiberlich, K., Burke, T., & Nix, N. (2022). Case 7: Case Competition–Alphabet Audit.  Comprehensive Analysis of Financial Accounting Through Series of Case Studies, 45. https://egrove.olemiss.edu/cgi/viewcontent.cgi?article=3566&context=hon_thesis#page=50

Iacuzzi, S. (2022). An appraisal of financial indicators for local government: a structured literature review.  Journal of Public Budgeting, Accounting & Financial Management,  34(6), 69-94 https://www.emerald.com/insight/content/doi/10.1108/JPBAFM-04-2021-0064/full/html

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California Crunch Company Financial Statement

Valery Salazar

Keiser University

Auditing 1

 Dr. Jennifer Bolden

March 11, 2023

California Crunch Company Financial Statement

Introduction:

The income statement for the years ending 31 December 2018 and 2017 of the California Crunch Companies summarizes the business's financial position. The income statement will be dissected, and steps will be suggested for raising the company's bottom line in this article (Bussoli et al., 2023). The income accounts for the year ending December 31, 2018, of California Crunch Companies include the company's sales, costs, and net income. Payroll costs, gross pay, deductions, and net pay may all be seen on the financial statements. This report aims to summarize and evaluate the financial statements of California Crunch Corporation (Conroy et al. 2022).

2.1 Sales and Cost of Goods Sold:

In 2018, California Crunch Industry's net sales were $8,353,542, up 4% from 2017's $7,998,832. The total cost of sales was up by 3%, from $3,621,532 in 2017 to $3,745,623 in 2018. While the uptick in revenue is encouraging, the corporation can boost its gross profit margin by cutting its cost of goods.

2.2 Gross Margin:

From $4,377,300 in 2017 to $4,607,919 in 2018, a 5% rise was seen in gross margin. Gross margin improvement is encouraging, but the firm has to sustain it by cutting costs and driving up sales. The long-term financial sustainability of the firm depends on keeping a stable gross margin. Improving operating efficiency, obtaining cheaper rates with suppliers, and investing in sales and marketing strategies to extend the client base are all things the firm should be doing to reduce the cost of products sold and increase revenues.

2.3 Operating Expenses:

Overall costs rose by $700,000, or 7%, to $3,130,312 in 2018 from $2,926,980 in 2017. Wages and salaries increased by 9 percent, which is a lot compared to inflation and other costs. To save on expenses, management must examine the company's pay scale.

The corporation may examine its compensation, wage structures, and other operational expenditures to see where savings might be made. To do so, the company may renegotiate contracts with its suppliers, cut down on discretionary expenditure, and enhance the effectiveness of its operations (Iacuzzi, 2022).

2.4 Operating Income:

Revenue from operations rose from $1,450,320 in 2017 to $1,477,607 in 2018, a 2% increase. An uptick in operating revenue is encouraging, but the firm may do even better by cutting its operational costs to boost its bottom line even more. A rise in operating cash flow from 2017 to 2018 is encouraging, but the firm must keep cutting costs to keep growing. This may be accomplished in several ways, including by increasing operational efficiency, renegotiating contracts with key suppliers, and simplifying relevant procedures. The corporation can strengthen its finances and expand by increasing its operational profits.

2.5 Interest Expense and Other Income:

The interest cost in 2018 was $84,658 (a 1% increase over 2017's $83,950). The percentage rise in other income from $5,725 in 2017 to $5,920 in 2018 was 3%. The corporation must cut its interest costs if it wants to boost its bottom line. The firm may look at debt refinancing at a reduced interest rate, creditor negotiations for more favorable conditions, or initiatives to increase cash flow and decrease dependency on debt financing if it wants to cut interest payments. If interest costs are lowering the company's net profit, it may be time to look elsewhere for growth or cost savings.

2.6 Income Taxes and Net Income:

The 2018 income tax filing threshold is $489,604, up 2% from the 2017 filing threshold of $480,233. The 2018 net income was $909,265 compared to the 2017 net income of $891,862. The company's net income may be increased by lowering its income tax rate. Employees have different payroll costs and deduction percentages depending on their pay rates and deduction amounts. Employee 117, for instance, earned $1,581.43 after deductions of 20.77% of their $24.95 hourly salary. Employee 149's hourly wage was $16.85; after taxes and other deductions, the total amount they received was $962.88. Net compensation for worker 162 was $1,368.58 at $20.25 per hour after deductions totaling 15.52 percent of salary.

3.0 Conclusion:

In conclusion, the payroll costs, deductions, and net compensation for the year ending December 31, 2018, may be gleaned from the financial accounts of California Crunch Corporation. Payroll costs were up by 4% yearly, with deductions rising by 9%. The bulk of the payroll budget went toward the payment of regular hours worked, whereas the bulk of the deductions went toward the payment of various taxes. The average rise in net pay was 2% over the previous year. However, this varied widely across workers due to differences in pay rates and deductions percentages. These financial statements assist managers in understanding the company's financial standing and making better choices for the company's future. To boost profits, California Crunch Company should work to lower the cost of products sold, cut its operational expenditures, and reevaluate its compensation practices. There is a need to decrease interest costs and income taxes if the firm is to increase its net income. California Crunch Corporation may enhance its financial performance and achieve its objectives if it follows these suggestions.

References

Bussoli, C., Giannotti, C., Marino, F., & Maruotti, A. (2023). Trade credit in Europe: Financial constraint and substitution effect in crisis times.  European Financial Management,  29(1), 327-348. https://onlinelibrary.wiley.com/doi/abs/10.1111/eufm.12362

Conroy, M., Fitzhenry, S., Seiberlich, K., Burke, T., & Nix, N. (2022). Case 7: Case Competition–Alphabet Audit.  Comprehensive Analysis of Financial Accounting Through Series of Case Studies, 45. https://egrove.olemiss.edu/cgi/viewcontent.cgi?article=3566&context=hon_thesis#page=50

Iacuzzi, S. (2022). An appraisal of financial indicators for local government: a structured literature review.  Journal of Public Budgeting, Accounting & Financial Management,  34(6), 69-94 https://www.emerald.com/insight/content/doi/10.1108/JPBAFM-04-2021-0064/full/html