Tiffany Hale AC503-02 Unit 2 Case Study North Face Inc. Case Study 1. Should auditors insist that their clients accept all proposed audit adjustments‚ even those that have an “immaterial” effect on the given set of financial statements? Defend your answer. When it comes to immaterial effect on a set of financial statements I would say that clients should not accept all proposed audit adjustments. By clients not accepting all proposed audit adjustments‚ auditors are
Premium Auditing Generally Accepted Accounting Principles Audit
Case 5.3 The North Face‚ Inc 1 Auditors should not insist that their clients accept all proposed audit adjustments even those that have an “immaterial” effect on the given set of financial statements. Because “immaterial” effect on the financial statements will not affect the users’ decisions. Therefore‚ auditors have to confirm if the effects on the financial statements are really “immaterial”. If there are really “immaterial”‚ sometimes the auditor would be forced by the clients to ignore it
Premium Auditing Audit Generally Accepted Accounting Principles
The most concerning issue is the way Live Well Inc. deal with consignment and the recognition of revenue. As Live Well Inc. sells products through another party‚ being the sales coordinators‚ they cannot recognize revenue as the consignment of goods does not constitute a sale. They can only identify the revenue when the consignee sells the goods to a third party. This rule applies to both ASPE and IFRS standards. They currently recognize revenue upon shipment‚ however under the new IFRS 15 guidelines
Premium Generally Accepted Accounting Principles Revenue Marketing
clients would refuse to propose audit adjustments. 1. Discuss the general principles or guidelines that dictate when companies are entitled to record revenue and how the $7.8 million barter transaction and the two consignment sales discussed in the case may have violated these principles. . Revenues and gains are realized when products (goods or services)‚ merchandise‚ or other assets are exchanged for cash or claims to cash revenues are considered to have been earned when the
Premium Auditing Audit Financial audit
FACTS: Defendant‚ AAA North Jersey‚ Inc. (“AAA”)‚ contracted with Five Star Auto Service (“Five Star”) to perform towing and auto repair services for AAA. Defendant Terence Pershad‚ a tow-truck driver employed by Five Star‚ received a call through AAA to assist a crashed car. Upon Pershad’s arrival at the crash site‚ Pershad and Plaintiff Nicholas Coker (a passenger of the crashed car) began fighting‚ which ended soon after Pershad assaulted Plaintiff with a knife. Plaintiff filed suit in a New Jersey
Premium Law Contract Supreme Court of the United States
The Leslie Fay Companies 4. Paul Polishan apparently dominated Leslie Fay’s accounting and financial reporting functions and the individuals who were his subordinates. What implications do such circumstances pose for a company’s independent auditors? How should auditors take such circumstances into consideration when planning an audit? Implications and something needs attention 1. The unusual relationship between CEO and CFO‚ especially when they are close to each other. 2. Accountant in charge
Premium Internal control Auditing Audit
more consumers were becoming price sensitive‚ and since its major rival‚ “Black Bird” was more competitively priced‚ the sales of Lightwel have been going down. b) Retailer‟s loyalty towards Lightwel have decreased. From exhibit 5‚ we find that in case of Black Bird‚ retailer‟s choice accounts for 76.3% of the sales‚ where as for the flagship Lightwel brand‚ “Four Aces”‚ this account for only 61% of the sales. In an industry‚ where most brands are „pushed‟ by the retailers‚ this is a major cause
Premium Marketing Brand
The North Face Inc. 1. The auditor should mainly insist their clients to make the proper adjustments towards material misstatements that have a direct effect on financail statements. In regards to immaterial items‚ the auditor should give the client suggestions on why they recommend for the client to make adjustments. And if the client disagrees with the adjustments they probably have a logical reason for why they don’t want to make the adjustments. And the auditor should respect the clients decision
Premium Audit Financial audit Auditing
Wells Fargo Group Marketing 304 Professor Kiesler 2:00 P.M. – 3:15 P.M. T/Th 9 May 2007 Wells Fargo: Marketing Plan Kevin De Place Bill Ho Ryan Neal Diana Suranyi Kevin Yetter Executive Summary Our team constructed a marketing plan of the company Wells Fargo. The first half of the report covers the company background by finding information about it‚ its competition‚ and the environment to see how the company stands.
Premium Bank
Executive Summary The North West Company is a leading retailer of food and everyday needs to rural and urban neighborhoods across Canada. They are currently using a “push” strategy‚ which the category manager at North West headquarters in Winnipeg analyzed trends‚ placed orders and allocated products to stores. Inspired by Giant Tiger’s example of a “pull” system in action‚ North West management was considering giving store managers more control over their inventory ordering by moving to a “pull”
Premium Supply chain management Supply chain Retailing