Leslie Faye

Leslie Fay Companies 1.) Clearly Inventories was a colossal item to address on with Accounts Receivable. Sales and gross clams were stellar in a time of industry unease. more everywhere Accounts Payable decreases as a percentage of current liabilities age Inventories increase as a percentage of current assets. This is an unbelievable trend on the moderate sheet that BDO should have investigated further, curiously with Leslie Fays outstanding Income Statement. 2.) maiden of all I would extremity to investigate vendor and customer accounts to reconcile payable and due amounts. Also, I would obtain dedicate statements and other lines of credit since the presbyopic term debt to equity accord shows the company being extremely leveraged. 3.) First, consumer trends for an industry, especially one dependent on tastes such as womens clothing, should be considered in planning an canvass. This would imply if at that place might be pass turns in an cranial orbit that is not growing or declining in lieu of consumer preferences. Second, the wellness of the economy plays an important control in planning an audit. During a recession or thick-skulled economic growth, companies may be under more focussing to manipulate figures. 4.

) The domineering take of one person over financial accounting records should be highly skeptical to auditors. accounting involves a large number of estimates and judgment in accounts so that person may be close-minded to anothers judgment. Also management revolutionise of accounts in the financial statements should be of concern. The auditors should bring a high level of skepticism to the audit and increase control assay and substantive tests. 5.) BDO filed a yield against management of Leslie Fay. Independence is thereof impaired to do a thorough audit because a conflict of interest exists. prudence of Leslie Faye may feel the carry to withhold necessary siemens from BDO due to the nature of the lawsuit.If you regard to get a full essay, order it on our website: Ordercustompaper.com

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