Sally Chin Monique Harper Marmeline Petion Eric Yaker Advanced Financial Analysis Final Group Project The North Face‚ Inc. December 5‚ 1999 Table of Content SECTION I Industry Analysis Overview Industry Trends Competitive Landscape 3 3 4 5 SECTION II Company Analysis Background Strategy-SWOT Analysis Strategy-Porter’s Five Forces 6 6 7 9 SECTION III Accounting Analysis Cash Flow Analysis Quality of Earnings Earnings Manipulation 10 10 10 11 SECTION IV Financial Analysis
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North Face‚ Inc. 1. Should auditors insist that their clients accept all proposed audit adjustments‚ even those that have an "immaterial" effect on the given financial statements? Define your answer. I think auditors should strongly insist that their proposed adjustments should be made. If the company makes the proposed adjustments‚ it would seem to allow for a lesser probability for misstatements to occur. Even though an adjustment may seem immaterial for one year’s statements‚ a combination
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The brand is distributed in North and South America‚ Europe and Asia. Is the company looking to investigate their decline in sales in North America alone? Or should the research expand to their international branches? 2. In the past year e-commerce sales has increased by 16% making up 8.1% of the total retail market. In addition to visiting brick and mortar sporting goods store should I also look into how the online sales account for the total retail sales of North Face? 3. Aside from selling their
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Financial accountants and independent auditors commonly face challenges Abstract Financial accountants and independent auditors commonly face challenging technical and ethical dilemmas while carrying out their professional responsibilities. This case profiles an accounting and financial reporting fraud orchestrated by the chief financial officer (CFO) of a major public company and his subordinates. The CFO‚ who was a CPA‚ took extreme measures to conceal the fraud from his company’s audit
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the merchandise was actually the most appropriate accounting treatment for the transaction. 1. Explain the principle objectives of auditor’s work papers and how these objectives were undermined by Deloitte’s decision to alter North Face’s 1997
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This case titled “The North Face” examines the accounting schemes used by North Face executives to enhance the company’s revenues and profits. These schemes primarily involved violations of the revenue recognition rule for certain barter and consignment transactions arranged by the company’s chief financial officer and vice-president of sales. Deloitte served as North Face’s auditors during the period when the company’s operating results were manipulated. The SEC’s investigation revealed that
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SWOT Analysis: The North Face The North Face was founded in 1966. In 2000‚ after facing serious financial and distribution problems‚ the company was acquired by VF Corporation. Today‚ as a subsidiary‚ the outdoor and action sports company headquartered in San Leandro‚ California‚ has approximately 860 employees and accounts for 40% of VF’s total sales. The North Face offers technically advanced products to extreme athletes and explorers throughout North and South America‚ Europe and Asia. The company
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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
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China | Converting 1. Step up development efforts in second-tier city‚ make strategic layout 2. Develop wider adaptability products that fit in China 3. Strengthen channel manager’s marketing skill | Treats 1. The competition of other outdoors brand 2. Sham products and illegally bidding 3. With a high cost on traditional marketing costs in China | Minimizing 1. Having a better business cooperation with domestic agency‚ build complete commercial contract 2. Reducing developing
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The North Face‚ Inc. - Individual Case Synopsis: The North Face‚ a company that has always found a way to sell their product to unique customer‚ didn’t get to where they are today easily. Presently owned by Vanity Fair‚ The North Face was started by Hap Klopp in the mid 1960s with the mission of providing a ready source of hiking and camping gear to customers. Today‚ they offer products ranging from outdoor chairs to backpacks. As the company began to grow‚ so did the goals set by management
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