Role Of Audit Quality And Culture Influence - Myassignmenthelp.Com

Question: Discuss about the Role Of Audit Quality And Culture Influence. Answer: General Mills, Inc: The tables aim in representing the Free cash flow and value per share of General Mills, Inc for 2009. In addition, relevant detection of the Free cash flow is mainly identified from cash operations that might lead to the discovery of the actual Free cash flow. Moreover, the calculations conducted in above table represents the overall need for discounting factor to evaluate and identify the actual present value of Free cash flow. Astami et al. (2017) mentioned that corporations by using free cash flow can detect and identify the actual discounted free cash flow, which could be used in detecting its value per share. On the other hand, Zhou et al. (2017) criticises that discounting rate assumptions needs to be correct or else it could directly hinder the detection of present value of free cash flow that could in turn portray wrong value per share. The table mainly depicts the comprehensive discounted cash flow of the organisation, which could help in identifying the value per share. In addition, changes in FCF and enterprise value mainly alters the actual value of the share for the organisation. Moreover, 3% growth rate is mainly accommodated in the calculation that changes the actual value per share of the company. In addition, the changes in growth mainly increase share value to $51.859 from $32.828, as 3% growth rate obtained by the organisation. According to Kadioglu and Yilmaz (2017), growth rate in dividend mainly changes the overall estimated share price of the organisation and allows investor to make adequate investment decisions. Kimberly-Clark Corporation: Method 1 and method 2 is mainly depicted in the above calculation that might help in identifying the organisations free cash flow from operations. The companys common equity has been detected after reducing net operating asset with financial assets. This allows the organisation in identifying actual organisational equity. The value of $1,563.9 is mainly identified from the calculation of method 1. However, free cash flow method also helps in detecting the net pay out to shareholders that could be increased from operations. In this context, Gordon et al. (2017) mentioned that free cash flow can detect the net pay out of the organisation that could allow investors to identify the return provided from investment. Free cash flow of the organisation is mainly detected with the help of above table, which helps in detecting its financial stability. The reported cash flow from operations and net interest paid after tax sums up to $2,623.518. Moreover, investment in marketing securities and cash spending on investing activities are summed and detected from the period value to identify the actual free cash flow of the company. The Free cash flow is mainly calculated at the levels of $1,725.518, which could allow investors in identifying financial position of the organisation. Kadioglu and Yilmaz (2017) mentioned that detection of the overall free cash flow is essential for the investors in identifying financial stability of the organisation. Reference: Astami, E.W., Rusmin, R., Hartadi, B. and Evans, J., 2017. The role of audit quality and culture influence on earnings management in companies with excessive free cash flow: Evidence from the Asia-Pacific region.International Journal of Accounting Information Management,25(1), pp.21-42. Gordon, E.A., Henry, E., Jorgensen, B.N. and Linthicum, C.L., 2017. Flexibility in cash-flow classification under IFRS: determinants and consequences.Review of Accounting Studies,22(2), pp.839-872. Kadioglu, E. and Yilmaz, E.A., 2017. Is the free cash flow hypothesis valid in Turkey?.Borsa Istanbul Review,17(2), pp.111-116. Zhou, N., Shum, W.Y., Chan, S.N. and Lai, F., 2017. Credit Expansion, Free Cash Flow and Enterprise Investment: An Empirical Study Based on Listed Companies in China.International Journal of Economics and Finance,9(9), p.70.