Leslie Faye

Leslie Fay Companies 1.) Clearly Inventories was a big item to address on with Accounts Receivable. Sales and gross pro depart 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 guest accounts to reconcile payable and receivable amounts. Also, I would obtain confide statements and other lines of credit since the long term debt to equity counterbalance shows the company being highly leveraged. 3.) First, consumer trends for an industry, especially one dependent on tastes such as womens clothing, should be considered in planning an take stock. This would imply if there might be fan out numbers in an area tha t is not growing or declining in lieu of consumer preferences. Second, the health of the economy plays an important catch in planning an audit. During a recession or dumb economic growth, companies may be under more centering to manipulate figures. 4.

) The domineering effect of one person over financial accounting records should be highly skeptical to auditors. account 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 concern. The auditors should b ring a higher level of skepticism to the aud! it and increase control risk and substantive tests. 5.) BDO filed a outlet against management of Leslie Fay. Independence is therefore impaired to do a thorough audit because a conflict of interest exists. discreetness of Leslie Faye may feel the need to withhold necessary randomness from BDO due to the nature of the lawsuit.If you want to get a organic essay, order it on our website: BestEssayCheap.com

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