Unit 9 and 10 Discussion Capston

Topic: Management Reports

Topic: Management Reports

Management reports have been a prominent topic the past few years. The term “Management Reports” can be understood in a variety of different contexts and applications. A management report is also included in the annual report to shareholders. An annual report to shareholders is not the same as annual financial statements, although financial information is included in an annual report to shareholders.

The management report is included in the annual report to shareholders as a result of the urging of a number of groups and organizations. Consequently, the form and content of the annual report to shareholders continues to evolve as management attempts to present additional decision useful information to various constituencies and stakeholders of the company.

  1. Explain the general purposes of the management report included in the annual report to shareholders.
  2. Identify five subject areas or topics that have been recommended for inclusion in the management report.
  3. Explain why the content of the management report might influence the activities of the external auditor during an audit engagement.


Unit 10 Discussion


Topic: Ethical-Decision Making

Click to read the scenario about Stacy Lynn, Inc. After you complete the Reading respond to the following components:

Part A) If Stacy Lynn wants to show the bank the maximum profit over the previous 2-year period, which costing method should be presented?

Part B) However, the bank requires that all financial statements conform to Generally Accepted Accounting Principles (GAAP). Based on that requirement, which costing method should be presented?

Part C) The bank has delivered a memo in preparation for the meeting to negotiate the Credit Line; the memo states that they will expect a significant Net Income. Based on your responses to Parts A and  B, what are some of the legal and ethical issues that may be of importance to Stacy Lynn?


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