Essay About Financial Statements And Record Keeping

Concerns About the Record Keeping in Completion Percentage
MEMORANDUMTO:                Dr. Mahoney FROM:        Shunya HaraSUBJECT:        Concerns about the record keeping in completion percentage DATE:                October 1, 2015The Maria’s recording of completion percentage seems questionable to Josey because the number what Maria calculated looks a little bit overstated compare to what Josey actually observes. Regardless of the new line which makes lot of money, Josey suspects that Maria’s overstated estimating and recording the completion percentage make the ending inventory rough. The purpose of this memo is to acknowledge you that Josey concerns the way Maria observes and records the completion percentage of DM and Conversion costs are should be changed. Although Josey knows the truth that such small amount of intentional exaggeration could not make a huge difference in the financial statements, Josey thinks it still violates ethics of recording numbers.According to Code of Business Conduct, a company needs an accurate recording and reporting of information in order to make responsible business decisions. All of the company’s books, records, accounts and financial statements must be maintained in reasonable detail, must appropriately reflect the company’s transactions and must conform both to applicable legal requirements and to the company’s system of internal controls. Maria’s intentional “makeup” doesn’t seem to cause anything trouble, however, her actions could be called window dressing which is often found for increase demand sales or cover negative characteristics. In addition, he concerns that, in near future, Maria’s record keeping has a possibility to be reported as an intentional misstatements in financial statements designed to be deceive financial statement users where the effect causes the financial statements not to be presented, in all material respects, in conformity with U.S. GAAP or COBOA.