Leslie Faye

Leslie Fay Companies 1.) Clearly Inventories was a super item to address on with Accounts Receivable. Sales and gross do good were stellar in a time of industry unease. furthermore Accounts Payable decreases as a percentage of current liabilities trance Inventories increase as a percentage of current assets. This is an implausible trend on the suit sheet that BDO should have investigated further, specially with Leslie Fays outstanding Income Statement. 2.) inaugural of all I would command to investigate vendor and node accounts to reconcile payable and due amounts. Also, I would obtain hope statements and other lines of credit since the vast term debt to equity residual shows the company being passing leveraged. 3.) First, consumer trends for an industry, especially one dependent on tastes such as womens clothing, should be considered in planning an inspect. This would imply if in that respect might be spread out sum ups in an area that is not growing or declining in lieu of consumer preferences. Second, the health of the economy plays an important go steady in planning an audit. During a recession or wispy economic growth, companies may be under more focal point to manipulate figures. 4.

) The domineering mental picture of one person everywhere financial accounting records should be highly skeptical to auditors. accounting system involves a large number of estimates and judgment in accounts so that person may be close-minded to anothers judgment. Also management overrule of accounts in the financial statements should be of concern. The auditors should bring a higher(prenominal) level of skepticism to the audit and increase control try and substantive tests. 5.) BDO filed a casing against management of Leslie Fay. Independence is consequently impaired to do a thorough audit because a conflict of interest exists. charge of Leslie Faye may feel the take aim to withhold necessary stochasticity from BDO due to the nature of the lawsuit.If you requisite to get a intrinsic essay, order it on our website: Ordercustompaper.com

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