His son pleaded guilty to criminal charges and was sentenced to a month prison term.Briefly explain whether or not you believe that the Deloitte auditors responded appropriately to the five critical audit risk factors that you identified. On the other hand, cash may be used for a disproportionate amount of transactions, creating additional opportunities for skimming at the register. What were the high-risk financial statement items for the audit? Inherent risk are important because it will evaluate if there has been some type of theft, or if there was anything changed in the form of a non-routine transactions or a complex transaction. Besides, JFF had a typical AR turnover rate as others in the retail businesses, and the operating margin and net margin also looked fine. In , Just For Feet bought Florida-based Athletic Attic and Michigan-based Imperial Sports, enabling the company to enter numerous markets and several states where it previously had no presence. As a result, auditors fail touncover misstatements or manipulations in the financial statements. This will create a flat organisational structure with wide spans of control for each manager. Given these data , comment on what you believe were the high-risk financial statement items for the Just for Feet audit.
Also compute key liquidity, solvency, activity, and profitability ratios for These challenges are made more complex when a retailer operates in a highly competitive sector or retailing such as trendy clothing or athletic shoes.
As to how it will affect the audit plan, the auditor needs to make sure that there is proper division of duties, needs to test to make sure values are correct and there are no misstatements.
In the spot, a group of Caucasian men in a humvee are seen tracking down a barefoot Kenyan runner, sedating him with drug-laced water, and forcing Nike shoes on his feet while he was unconscious. An example of this is segregation of duty.Jay Shafer is the owner of the Tiny Tumbleweed House Company, founder of the Small House Society, an ecological activist, a new-era architect, and a lifestyle revolutionary. In , Ruttenberg decided to begin a new business venture in the retail shoe business. My ethical position to adhere to what is right is what would require me to make this decision. Large increase in inventory in proportion to historic norms, consistently negative operating cash flow indicating a continued need to raise capital and to keep reporting results that will attract investors , increase in vendor allowance receivable, slow growth of accounts payable relative to inventory gains, increase in financial leverage, declining cash on balance sheet and consistently steady gross and operating margins in a business that has a meaningful level os fixed costs and that is highly seasonal in terms of sales. Words: - Pages: 10 Just for Feet, Inc. Journal of Accountancy, 3 , This shows that they need to lower their costs in making their product to be more profitable. Prepare common-sized balance sheets and income statements and compute key ratios for I would be questioning the efficiency of management for handling the income that shareholders have contributed.
How should these risks affect the audit planning decisions for such a client? A Mixture of Motivations Today's economy suffers in part due Briefly explain whether or not you believe that the Deloitte auditors responded appropriately to the five critical audit risk factors that you identified. The management, especially the accounting department could not apply the market rule or the lower cost in arriving at the end year market valuation.
Martha is inflexible about training her current staff. Does it include and significant transaction out of the normal course of business?Words: - Pages: 10 Just for Feet, Inc. Identify the five audit risk factors that you believe were most critical to the successful completion of that audit. Traditionally, dancing has been around for many years, although there are many Organization was very decentralized in terms of store operations; further complicates the process of ensuring that financial controls are adequate and consistent across the organization and organizations also creates opportunities for less senior management to potentially take advantage of the lack of central oversight. Words: - Pages: 3 Just for Feet Question 3 Just for feet operated in an extremely competitive industry, or sub-industry. The importance of audit planning. Management was particularly interested in its short-term share price as a measure of its success or failure, management placed significant emphasis on meeting short-term earning goals, go big or go home approach towards expansion even if changes in the business environment warranted a more moderate approach and dominant personality of CEO. Bibliography Gartland, D. Secondlimitation is the rules implemented by the client which prohibit auditorsto further inspect or review the financial standing of the company. Sort of like what Just for Feet did when raised the inventory at the end of two years.
Around the country, people are purchasing his designs, attending his workshops, and following his revolutionary example of how to live life with less space and less possessions, resulting in less of a drain on resources and the environment.
And those that are in the mentioned positions also would be experienced.
To plan the nature, timing, and extent of audit procedures, the auditor should establish a materiality level for the financial statements as a whole and materiality levels for particular accounts or disclosures.