Leslie Faye

Leslie Fay Companies 1.) Clearly Inventories was a big item to address on with Accounts Receivable. Sales and gross pro beseem were stellar in a time of industry unease. Furthermore Accounts Payable decreases as a percentage of current liabilities while Inventories increase as a percentage of current assets. This is an implausible trend on the fit sheet that BDO should have investigated further, especially with Leslie Fays outstanding Income Statement. 2.) best of all I would want to investigate vendor and client accounts to reconcile payable and receivable amounts. Also, I would obtain institutionalise statements and other lines of credit since the long term debt to equity proportionateness shows the company being highly leveraged. 3.) First, consumer trends for an industry, especially one reliant on tastes such as womens clothing, should be considered in planning an scrutinise. This would imply if there might be pass numbers in an are a that is not growing or declining in lieu of consumer preferences. Second, the health of the economy plays an important prefigure in planning an audit. During a recession or with child(p) economic growth, companies may be under more focusing to manipulate figures. 4.

) The domineering effect of one person everywhere financial accounting records should be highly skeptical to auditors. accountancy involves a large number of estimates and judgment in accounts so that person may be close-minded to anothers judgment. Also management override of accounts in the financial statements should be of conc ern. The auditors should bring a higher le! vel of skepticism to the audit and increase control risk and substantive tests. 5.) BDO filed a import against management of Leslie Fay. Independence is therefore impaired to do a thorough audit because a conflict of interest exists. forethought of Leslie Faye may feel the need to withhold necessary entropy from BDO due to the nature of the lawsuit.If you want to get a intrinsical essay, order it on our website: BestEssayCheap.com

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