Independent firm to provide financial performance

Reference no: EM13311154

One way to reduce the ethical conflict would be in Sunset’s best interest to take the Financial Statement preparation duties away from PMI. Using and independent firm to provide financial performance provides a control that prohibits PMI from using assumptions that maximize profits of PMI at the expense of Sunset. Additionally, since PMI’s billing and collection fee is based on monthly net receivables, there is an incentive for PMI to not collect. PMI’s billing and collection fee should be based on collections rather than receivables.

Reference no: EM13311154

Questions Cloud

Money to desperate disaster victims : John decides to cheat on a contract promise to get paid faster so that he can give that money to desperate disaster victims. From an ethical perspective,

Continuous distribution with distribution function : Suppose that X has a continuous distribution with distribution function

How do our views of happiness reflect cultural myths : How do our views of happiness reflect cultural myths? Consider the mythic figures of celebrities in our culture. How is happiness defined by American media and advertising?

Recruitment and selection process : "Recruitment and Selection" Please respond to the following: A hospital in your community is looking for a CLO to head the HR department to create a learning organization as the hospital moves to be a teaching facility. Analyze the methods utilized f..

Independent firm to provide financial performance : One way to reduce the ethical conflict would be in Sunset’s best interest to take the Financial Statement preparation duties away from PMI. Using and independent firm to provide financial performance provides a control that prohibits PMI from using a..

Heart rate of four different types of elite athletes recruit : A study comparing the resting heart rate of four different types of elite athletes recruited: 10 cyclists, 10 triathletes, 10 soccer players, and 10 baseball players. The resting heart rate of each athlete was measured, and the following hypothesis w..

What is the geometric mean change in the cost : In the 2009-2010 academic year, many public universities in the United States raised tuition and fees due to a decrease in state subsidies. The change in the cost of tuition, a shared dormitory room, and the most popular meal plan from the 2008-2009 ..

Standard airline organizational functional structure model : Compare and contrast the standard airline organizational functional structure model with the hybrid structure based on independent business units.

Confidence interval for the population mean : Random sample of 42 college graduates revealed that they worked an average of 5.5 years on the job before being promoted. The population standard deviation was 1.1 years. Using the 0.99 degree of confidence, what is the confidence interval for the po..

User Account

All Pages