Gmcr analysis and audit plan

Service level agreements and associated reports Any additional applicable information to help to garner the most accurate results Phase 3 — Conduct Interviews with All Stakeholders Stakeholders include existing service owners, process owners, service managers, process managers, and anyone else deemed a stakeholder in or regarding the organization. The interviews are based on the questionnaire your team developed—whether an in-house team or a professional consulting team—in Phase 1. Phase 4 — Draft Gap Analysis for Review This intermediate assessment phase gives your team, along with your stakeholders, the chance to look at the results of prior phases. This phase gives you the chance to review information and take additional steps to meet your goals if anything is missing.

Gmcr analysis and audit plan

Three areas of particular interest include criticism of: The current business model relies on selling the single-cup coffee brewers at or near cost, making its money on the relatively high-priced K-cup sales. But it appears to be a tenuous business going forward.

Green Mountain sells a very high-priced coffee product compared to other options available to consumers. This might cause consumers to be attracted to lower cost alternatives.

At this time, competitors will be free to make a K-cup compatible product. A third solution is the development of a new brewing system with new patent protection, but it seems unlikely that consumers would abandon their old brewers for which they will soon be able to get lower-priced products in favor of a new brewer for which they could only get higher-priced products form GMCR.

Other issues were raised by Einhorn, such as the relationship between Green Mountain and MBlockan entity that fulfills a large portion of Green Mountains orders from retailers. Is this organization really separate from Green Mountain? Or does it act more like an extension of GMCR? The importance of this issue was highlighted earlier this year in a class action suit, which indicates that Green Mountain may not have an arms length relationship with MBlock and may use the entity to manipulate revenue and inventory.

Gmcr analysis and audit plan

It is important to note that this is not some vague allegation being made. It is alleged that documents supporting an actual sale of products were not found, and that large quantities of inventory were sitting in MBlock warehouses following the shipment.

And the lawsuit alleges exactly that, saying that GMCR violated the accounting rules by recognizing revenue early on shipments to MBlock. Einhorn states equivocally that there are problems: The research shows that Green Mountain and MBlock are potentially engaged in a variety of shenanigans that appear designed to mislead auditors and to inflate financial results.

This kind of stuff is exactly the type of bad behavior that indicates substantial risk within a company. This could be just the tip of the iceberg. Chappell may be right in his criticism. And what about all the accounting shenanigans Einhorn points out? Chappell dismisses them by saying that the issue of the SEC inquiry is nearly a year old and Green Mountain made disclosures relative to it.

He says the company had some problems, which are expected with growing companies, and that everything has been fixed. Chappell says that the inventory problem related toand that no such problems have been found in or Are we really to believe that because no wrongdoing has been uncovered more recently, GMCR is squeaky clean?

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That is just silly. Chappell claims Einhorn is saying that because irregularities were discovered previously, there must be irregularities now.

I think what Einhorn said was a little nuanced. The most naive statements from Chappell pertain to the auditors. All is well, right? While it is true that the auditors did audit those financial statements and did issue clean opinions, it does not mean that there is no fraud or impropriety.

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Audits have never been designed to detect fraud, which is why they find fraud so infrequently. Auditors do a very limited amount of testing on the financial statements, looking to see if the numbers add up and the accounting rules have been properly applied.

They are not designed to find purposeful, concealed instances of fraud. Chappell, stop holding up audit reports as proof that there is not fraud. The biggest disagreement with Einhorn seems to be about the future of Green Mountain Coffee Roasters. However we continue to believe that the GMCR story is still in its early stages and that the stock will be highly rewarding to investors from current levels.

This is in contrast with what Einhorn has demonstrated. How could the company possibly have huge growth ahead when its patent the driver of its earnings is going to expire soon? Where Are the Auditors?

PricewaterhouseCoopers PwC audited the faulty financial statements from, and They continued as the auditors of the financial statements and have been the auditors during fiscal Further, Green Mountain has told investors that its accounting process and its numbers cannot be trusted: Additionally, these material weaknesses could result in a misstatement of the aforementioned account balances or disclosures that would result in a material misstatement to the annual or interim consolidated financial statements that would not be prevented or detected.

This is no minor problem.Strategic Management. Keurig/Green Mountain Coffee Roasters (GMCR) Final Exam Paper. 1. Provide an executive summary to your paper that indicates your analysis of the major issues presented in the case concerning GMCR and the highlights of your Strategic Plan (see question #9)..

2. Committed to delivering exceptional coffee for more than 35 years, today our Keurig® brewers and single serve hot beverages are in more than 20 million homes and offices throughout North America.

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Running head: GMCR GMCR: Green Mountain Coffee Roasters Analysis and Audit Plan Student 1 Student 2 Student 3 Student 4 University of Some State Abstract Green Mountain Coffee Roasters has become a force to reckon with in the specialty coffee industry, with incredible growth in .

Running head: GMCR GMCR: Green Mountain Coffee Roasters Analysis and Audit Plan Student 1 Student 2 Student 3 Student 4 University of Some State Abstract Green Mountain Coffee Roasters has become a force to reckon with in the specialty coffee industry, with incredible growth in the last ten years, due in large part to its commitment to.

analysis of key risks, our audit approach, reporting and audit timetable and other matters. Discussion of our plan with you ensures our PricewaterhouseCoopers engagement team members understand your concerns and that. Running head: GMCR GMCR: Green Mountain Coffee Roasters Analysis and Audit Plan Student 1 Student 2 Student 3 Student 4 University of Some State Abstract Green Mountain Coffee Roasters has become a force to reckon with in the specialty coffee industry, with incredible growth in the last ten years, due in large part to its .

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