Leslie Fay case

Leslie Fay Case 1.         After reviewing the common size financial statements and the tell apart ratios of Leslie Fay, thither some of the financial statement item that should possess been of crabby interest to BDO Seidman: 1).Sales: the sales has been growing steadily turf out the flimsy drop in 1991, which is contrary to the constancy recession. 2). register: Leslie Fay has been cognise for not catching up the fashion, there should be line write-off issue in the apparel industry, which havent been reflected in the pedigree eyeshade though. 3) A/R: always a play up because of its nature of hiding fraud 4). otherwise assets account: the current and lively ratio of Leslie Fay is significantly higher(prenominal) than the industry norm. 5). Liability account: A/P and debt, to analyse if understated. 2.         Other financial selective information that the auditor powerfulness have obtained: 1). The contract or organisation of Leslie Fay and department stores to contain the A/R and liability 2). Documentation with its client regarding its clubs 3). Its quote and bad debt write-off policy 3.         Non-financial factors the auditor should consider: 1). The industry 2). stupor of economy on this particular industry and bon ton 3). The companys structure, history and individualnel 4). government activity regulations that have influenced or will show the effort on the company 4.

        capital of Minnesota Polishans ascendancy has two-fold implications on the audit: 1). Suppose hes a morally-impeccable person who did everything right and he ld high integrity and responsibility towards! the company, his dominance compose shows an internal control weakness which lack the sequestration of duties. much(prenominal) system is prone to the fraud and if Mr. Polishan is sick or oblivious from work for whatever reason, the finance department might not function well. 2). Mr. Polishans dominance explained the fraud he perpetuated and hid. The audit should matter this into consideration... If you want to get a full essay, order it on our website: BestEssayCheap.com

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