Leslie Fay case

Leslie Fay Case 1.         After reviewing the common size financial statements and the pick up ratios of Leslie Fay, thither some of the financial statement item that should develop been of crabby interest to BDO Seidman: 1).Sales: the sales has been growing steadily save the flimsy drop in 1991, which is contrary to the labor recession. 2). arsenal: Leslie Fay has been cognise for non 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). different 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 visit if understated. 2.         Other financial selective information that the auditor superpower 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 opinion 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 ships company 3). The companys structure, history and mortalnel 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 held high integrity and responsibility towards the company, his dominance yet shows an internal control weakness which lack the sequestration of duties. such system is prone to the fraud and if Mr. Polishan is sick or listless 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 deve! lop this into consideration... If you want to get a full essay, order it on our website: BestEssayCheap.com

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